Carl Brown (Internet of Bugs): Will Democrats Blow Up The AI Bubble and Arrest Elon Musk?
Episode Summary
Veteran software engineer Carl Brown discusses how the Democrats’ “blue wave” midterm election outcome will affect the AI bubble over the next two years.
I have spent years arguing that politics affects business and technology, and this conversation with Carl brought that into sharp focus following the midterm election shock.
Data centres have become a central political issue in American politics, as communities are pushing back over their local impact. So we discussed whether the historic election results could change where projects get built and the wider impact on the AI industry as a whole.
And even when companies want to move projects elsewhere, financing, power, water and existing construction make that far from simple.
Let’s not forget that AI acceleration’s outlandish promises depend entirely on enormous computing capacity, and yet investors, banks and voters may not support the build-out companies expect.
Carl and I are wary of confident claims about AI’s future when the economics and infrastructure are still uncertain, not to mention when companies are already cutting jobs in AI’s name. From our point of view, the wider issue is that Democrats must address accountability. Silicon Valley’s powerful companies have choices about how they respond to political pressure, while smaller businesses may have real reasons to avoid alienating customers.
But politics shapes the conditions we work and live in, and people can influence those decisions when they act together, as we have seen with the midterms. For now, we are at an inflexion point, and we will have to watch what companies, elected officials, voters and markets do next.
This discussion is not about promoting political ideologies or party politics, which, in our view, are becoming increasingly irrelevant. It is all about economics and people’s welfare.
Join the conversation now and tell us if you think the midterm election outcome will trigger a significant shift in the AI industry, and even blow up the AI bubble. Will techbros, particularly Elon Musk, face state prosecutions?
Key Takeaways
- 00:00:00 – Preview
- 00:01:39 – Independent media faces serious challenges, and your support matters more than ever in the age of AI slop, clickbait and misinformation
- 00:02:27 – Politics and data-centre fallout after the 2026 midterm elections
- 00:05:43 – Data-centre financing and Enron-style structures
- 00:09:43 – How the markets read the election
- 00:12:30 – What Democrats can do about the tech bros
- 00:18:42 – The election as a data-centre referendum and state-level pushback
- 00:20:33 – Can AI projects move elsewhere?
- 00:23:16 – Ad break: music to help you focus, powered by Brain.fm/CEOR 🎧
- 00:25:44 – AI’s dependence on data-centre capacity: costs, promises and investor expectations
- 00:29:03 – IPOs and the future of AI infrastructure
- 00:31:26 – Texas politics and the data-centre backlash
- 00:34:26 – The growing anti-Silicon Valley sentiment
- 00:37:57 – Europe looks for alternatives to US tech
- 00:40:41 – Proton, privacy and AI concerns
- 00:42:42 – Who funds AI narratives?
- 00:45:10 – Cancer claims and AI alignment
- 00:48:04 – Proposed AI rules and accountability
- 00:50:24 – Could AI still dominate 2028?
- 00:52:04 – Who gets the blame if the AI bubble bursts?
- 00:57:44 – Election fallout and the Iran war
- 01:01:12 – What Americans are actually talking about: not AI or the Iran war
- 01:09:22 – Why staying informed matters
- 01:16:56 – Business leaders and political silence
- 01:25:03 – Politics beyond party lines
- 01:33:52 – Healthcare reform and entrenched interests
- 01:42:33 – How AI is killing graduate hiring and the impact on the next generation
- 01:45:10 – Protest and public response: will America face French-style riots?
- 01:53:38 – Could Musk face state prosecution?
- 02:02:26 – Short-term thinking and tech’s precarious future
- 02:09:10 – The tech industry’s thin talent pipeline
- 02:12:02 – AI: job replacement or productivity?
- 02:17:14 – Waiting for the next signal: people power and political change
CEOR Episodes Mentioned
-
Jeffrey Funk: The AI Bubble Is About to Burst. What Could Happen Next?
-
Carl Brown (Internet of Bugs): The Media’s and Influencers’ Narrative about AI Vibe Coding is Nonsense, Dangerous, and Misleading
-
Ann Pettifor: The AI Bubble Is A Time Bomb For Ordinary People, Broligarchs Will Cash In
-
Scott Lucas: Why you must now understand politics and the new economic reality
References and Citations
-
Did a data centre revolt affect the US midterm election results?
-
AI has failed to find any promising drug compounds
-
Control AI exec on Sky News dodging direct questions about AI-generated nude pictures of underage girls
-
Trump nearly took the blame for the midterms, but pivoted to attacking the press
-
Trump tries to get 2024 conviction in hush-money corruption case thrown out
-
Trump is found guilty on 34 felony counts.
-
Donald Trump Convicted on All 34 Counts in Hush Money Trial









