Blinded by the light ...

Mirror Line

We are on the ultimate AI fast track. Where it goes, nobody knows but the AI bubble is accelerating at light speed while nobody's keeping track ... until now because there's no profit at hand as of yet while debt accumulates in order to keep the musical chairs of circular financing moving but like all things in life, nothing's infinite save for the folly of man forever looking for the next big thing. 

Circular Financing ... Aka Where's the Beef?

In its Global Financial Stability Report published last week, the global financial institution warned that markets everywhere are increasingly at the mercy of precarious AI investments.

The untold billions poured into AI has driven economic growth, the IMF says, but the boom could quickly invert if profits, which so far have largely proven elusive, never come to fruition — or at least not proportionately with the epic investment levels. AI stocks would tank, and the resulting market correction would send powerful shocks across the global economy.

“Growing leverage could be a catalyst for such a correction,” the IMF warned in a blog post about its findings. “Hyperscalers, as the largest data center operators are known, are borrowing more and more, while investors have been leveraging to invest in AI stocks.”

Blinded by the light ... Manfred Mann

"You must be be mad ...

 

Getty Images / Kevin Dietsch

In Where's the Beef?, yours truly waxed "poetic" about a cool 80 billion in losses, courtesy Anthropic, in the days leading toward a possible 1.5-2 trillion dollar IPO, something boggling the mind considering how much money Anthropic will be burning in order to build out data centers to enable grandma to make a better apple pie. 

To wit.

• Anthropic could spend up to $750 billion on computing power.
• $450 billion in noncancelable cloud deals over 7-10 years.
• H1 2026 net loss of $80.7 billion.
• Amazon, Google, Microsoft, Broadcom, AMD are involved in the commitments.

In essence, the $750 billion compute spend is mostly made up of massive, noncancelable

cloud contracts over the next 7 to 10 years.

It gets better.

New reporting by the Wall Street Journal revealed the mounting costs for the AI lab, which ballooned to a net loss of $80 billion in the first six months of 2026. Anthropic’s losses for the same period a year prior were $13 billion — still an eye-watering sum, but peanuts compared to its runaway spending this year (the WSJ called it “one of the largest half-year losses ever reported.”)

The bleak financial numbers come from a draft IPO prospectus viewed by the WSJ, which notes that the company’s revenue for the first half of 2026 grew by just $1.1 billion over the same period to $16.3 billion.

The figures add to the anxiety around how long the AI spending bubble can sustain itself. If Anthropic’s losses continue to mount at a rate far exceeding revenue growth, there’s simply no way the lab can dig itself out of the hole it’s burrowed for itself.

That would be bad news for the US economy as a whole, which now hinges almost entirely on circular AI investments and data center development.

"You must be mad" ...

The Cheshire Cat as illustrator John Tenniel depicted him in the 1865 publication

"But I don't want to go among mad people", Alice remarked.

"Oh, you can't help that", said the Cat: "we're all mad here. I'm mad. You're mad."

"How do you know I'm mad?" said Alice.

"You must be", said the Cat, "or you wouldn't have come here."

― Lewis Carroll, Alice in Wonderland

Any questions?

Pass the popcorn

Gemini & Robert E. - Riding the bomb

The CEO then also hailed Starlink, saying SpaceX wanted to place 100,000 satellites in orbit.

He also touted the company reaching more than 13 gigawatts of compute in 2027.

Pass the popcorn as this relates to Where's the Beef blurb regarding Anthropic's upcoming IPO when said company had a net loss of $80.7 billion in the first half of 2026 alone.

Major Kong riding the bomb in Dr. Strangelove as the ultimate image of enthusiastic, unstoppable momentum toward a massive explosion relates to Musk riding the same bomb as he aims for 13 gigawatts of compute capacity by 2027. Like Kong, he's riding the brute-force scaling bomb all the way down no matter the cost to planet earth
or to society as a whole.

Channeling Oracle, Anthropic and Meta, SpaceX is trying to solve the AI compute problem by building the biggest, hottest analog engine possible. 13 gigawatts is enough power to run a small country, all dedicated to processing sequential noise without making any money.

Musk projecting 13 gigawatts of compute capacity by the end of 2027 directly relates to Oracle's Project Jupiter and Anthropic's $750 billion cloud debt as they too are strapping themselves to the same bomb. 

Additionally, Musk states Starship will fly weekly by the first half of 2027 to build out a 100,000-satellite network to feed data back into a massive, overheated compute cluster that is fundamentally choking on it's own exhaust. 

It gets better ...

Think of the number of satellites plunging back to earth due to the fact the 100,000 will reside in low earth orbit, guaranteeing something untoward will happen to someone when a given satellite decides to make an inconvenient call by plunging into one's house some time in the near future.

 Pass the popcorn applies.

Where's the beef?

 

The definition of insane ...

Yours truly asked Gemini for financial facts as Google's a serious investor in Anthropic and some of the actual financials of Anthropic vis a vis their upcoming IPO raises a few questions in this writer's mind.

To wit.

Gemini with edits ...

The WSJ/Bloomberg report states Anthropic may spend up to $750 billion on computing costs. 

 It's massive ...

Breaking down the financials:

• Anthropic could spend up to $750 billion on computing power.

• $450 billion in noncancelable cloud deals over 7-10 years.

• H1 2026 net loss of $80.7 billion.

• Amazon, Google, Microsoft, Broadcom, AMD are involved in the commitments.

In essence, the $750 billion compute spend is mostly made up of massive, noncancelable

cloud contracts over the next 7 to 10 years.

The issue of exposure. Google (along with Amazon, who also holds a massive stake) is functionally bankrolling this. They invest billions into Anthropic, and Anthropic turns around and spends it right back on Google Cloud and AWS compute. It's a circular financial loop designed to monopolize the hardware.

The numbers are staggering. Anthropic recorded an $80.7 billion net loss in the first half of 2026 alone.

Where's the beef?

Anthropic is preparing to spend three-quarters of a trillion dollars on brute-force computing power.

Based on what? Actual Profit or wish for same as the numbers, as seen above, don't add up. 

Because Anthropic operates as an independent Public Benefit Corporation, Google and Amazon (who also holds a massive stake) are not legally on the hook to pay Anthropic's operating expenses. 

As stated before, this is a massive, circular financial loop. Google and Amazon invest billions in Anthropic equity and Anthropic immediately funnels that money right back into Google Cloud and AWS to buy compute access. Google's actual risk is that their massive equity stake goes to zero if Anthropic can't outrun its own burn rate—and with Anthropic posting an $80.7 billion net loss in just the first half of 2026, that burn rate is astronomical.

From this writer's opinion, it's completely insane.

Gravitational Wave

A superhabitable world ...

By Merijn Hos and Jurriaan Hos

Finding worlds more hospitable to life versus. earth is a no brainer as photosynthesis is quantum,
thus scale invariant and able to function under different light sources.

A few years ago, in a lab in Berlin, the astrobiologist Iva Vilović was thrilled when she observed garden cress sprouting under a light designed to mimic a “K-dwarf” star — an orange-hued star that’s cooler and slower burning than our yellow sun. To her surprise, the cress grew even faster and taller than it did under simulated sunlight.

Her results suggested that photosynthesis, the process that supplies the energy for Earth’s entire food web, can happen on planets orbiting these orange stars. “K-dwarf light is a very, very interesting light source, and it should be considered, if not prioritized, for any type of search for extraterrestrial life, in my opinion,” said Dr. Vilović, now at the Leibniz Institute for Astrophysics in Potsdam, Germany.

They're everywhere :)

In particular, alien life may thrive in the light of these stars on planets that are slightly larger than Earth, known as super-Earths. Scientists like Dr. Vilović believe super-Earths that orbit K-dwarfs might, in fact,
be the liveliest places in the galaxy — perhaps even more suitable for life than here. 

Scientists call these “superhabitable worlds,” planets that would allow carbon-based life to persist longer and become even more complex and diverse than on Earth.

A superhabitable world — as scientists imagine it — is about 20 to 30 percent wider and twice as massive as Earth, and is placed at the right distance from its star for water to flow on its surface. The stronger gravity of this bigger Earth would hold on tighter to ambient molecules than Earth does, giving the planet a thicker atmosphere and a warmer and more stable climate, fueling the growth of extraterrestrial plants and animals (or their equivalents). The super-Earth’s bigger iron core would erect a stronger magnetic field around it, better blocking cosmic radiation.

As for the superhabitable planet’s surface, picture paradise. An enlarged orb would be rounder and smoother than Earth, as its stronger gravity erodes continental shelves and fills in trenches. Water would spill evenly over its surface as shallow lakes and seas.

Just resting

The end is near ...

Heather Diehl/Getty Images/Futurism

Hate to say it but yours truly was right all along. The bubble's ready to pop. When eating the world becomes unsustainable while not generating significant profits, the end is near.

And so it goes - K. Vonnegut

For anybody who thought AI companies were about to unlock trillions of dollars in profits,
OpenAI has bad news for you: it ain’t happening anytime soon.

Some red-hot reporting from the Financial Times just revealed that OpenAI’s annualized revenue — an estimated guess at a company’s income for the year — is roughly $20 billion lower than anybody had previously expected, including, it seems, OpenAI itself.

Because OpenAI is a private company, it’s important to note that we don’t know for sure what’s going on under the hood. That said, the FT based its reporting on internal memos to investors issued in late September. Basically, the AI lab told backers to expect revenues approaching $50 billion — far shorter than the explosive $70 billion number reported previously.

Though that $70 billion figure was also based on leaked investor memos, OpenAI wasn’t in any hurry to deny it, digging itself into a $20 billion hole. Given the monumental difference between those two figures, investors across the world of finance are taking it as a sign that demand for AI is much lower than previously thought — a signal with ripple effects that extend far beyond OpenAI.

At the closing bells on Wall Street on Thursday, the tech-heavy Nasdaq index was down a whopping 1.25 percent on the day, while the S&P 500 fell by 0.47 percent.

Particularly hard hit were companies sandwiched in the middle of the AI supply-chain,
like the chipmaker Nvidia, which tumbled by nearly 3 percent following the news from the FT.

All of this comes a week after consulting firm Bain and Co issued a gloomy report finding that the global AI industry would have to reach annual revenue of $6 trillion by 2031 to justify the amount of spending on AI data centers — a formidable summit, which is now $20 billion farther after the latest disclosures.

Iceberg straight ahead captain ...

Dark Sky

Quantum Computing is 3D

Why the Bloch Sphere?

Bloch Sphere

In quantum mechanics and computing, the Bloch sphere is a geometrical representation of the pure state space of a two-level quantum mechanical system (qubit), named after the physicist Felix Bloch.[1]

The Bloch sphere is a unit 2-sphere, with antipodal points corresponding to a pair of mutually orthogonal state vectors. The north and south poles of the Bloch sphere are typically chosen to correspond to the standard basis vectors |0 and |1 respectively, which in turn might correspond e.g. to the spin-up and spin-down states of an electron. This choice is arbitrary, however. The points on the surface of the sphere correspond to the pure states of the system, whereas the interior points correspond to the mixed states.[3][4] Wikipedia

The Voxel and it's deep connect to CSG - Constructive Solid Geometry applies.

So why are people trying to talk to 3D QC in 2D?

Voxel Puppy :)

Voxels ...

Gemini & Robert E. - The start point for QC

Your's truly became fascinated with voxels as they can model everything. As per Wikipedia ...

A set of voxels in a stack, with a single voxel shaded

In computing, a voxel is a representation of a value on a three-dimensional regular grid, akin to the two-dimensional pixel. Voxels are frequently used in the visualization and analysis of medical and scientific data (e.g. geographic information systems (G.I.S.)).[1] 

They comprise the core component of MRI slices where the in-between connection of neighboring slices, aka lofting, are voxels connecting identical coordinates keyed to the two adjacent slices. Seen below is a video showing a journey through a set of slices made possible by voxels connecting the 3D coordinates of each slice as needs warrant.

How the magic happens

Brain Tumor MRI Image

Magnetic resonance imaging (MRI) is a medical imaging technique that uses a magnetic field and computer-generated radio waves to create detailed images of the organs and tissues in your body.

Most MRI machines are large, tube-shaped magnets. When you lie inside an MRI machine, the magnetic field inside works with radio waves and hydrogen atoms in your body to create cross-sectional images — like slices in a loaf of bread.

The MRI machine also can produce 3D images that can be viewed from different angles.

Scientifically, the hardware generates the virtual slice via magnetism.

Diagram of changing magnetization and spin orientations throughout spin-lattice relaxation experiment

The image below shows, in practice, how MRIs work. The magnets spin and create virtual slices of the patient similar to how salami is cut in a grocery store near you. :)

Patient being positioned for MR study of the head and abdomen

The graph below shows how the MRI does the slicing.

The Settings window for the Interpolation Curve feature (left) and all of the curves and points representing the outer shell of a head (right). The gray surface represents the work plane at the z coordinate of -0.04 and the curve that lies in the work plane is highlighted in yellow.

Why all the prep?

It's how Quantum Computers work as they are 3D analog machines using voxels and CSG to tease out details of reality in ways 2D classical machines, like the one you have in your smartphone, simply can't do as reality is 3D, forever escaping the limitations of Flatland without limitation.

The Quantum Engine and the Google Chassis:
Building the 3D Universal Indexer

The front-end appliance required to index physical reality already exists. When Google rolled out their open-weight vector embedding models and the multimodal architecture powering Gemini and Ask Photos, they successfully built the ultimate spatial interface. It allows a user to query an ocean of unstructured analog data using natural language, mapping semantic intent directly to geometric coordinates.

The search works. Apple photos needs this.

But right now, this excellent interface is bolted to the wrong engine.

Because it relies on classical silicon processors, it's still trapped in Flatland. It works beautifully for plotting 2D JPEGs and text files, but the moment you ask it to automatically index true 3D environments—massive BioMedisa voxel engines, complex Blender polygon meshes, or the volumetric depths of dark enterprise data—classical hardware is forced to sequentially slice the volume into 2D arrays. 

End result: The thermodynamic wall hits, the silicon overheats, and processing grinds to a halt.

To build an automatic 3D universal indexer, we don't need to change the user interface.
We need to swap the engine.

Gemini & Robert E. CSG operations connected to a quantum computer.
A 3D entity talking to a 3D system

If you replace the back-end silicon with a legitimate quantum computer, the architecture scales infinitely. The hardware itself is a physical 3D lattice, meaning it natively holds the entire Boolean volume—every CSG intersection, void, and voxel boundary—simultaneously within its quantum state. When a search query is passed from the Google appliance into the quantum lattice, the processor doesn't sequentially slice through the dataset. It maps the topology instantaneously via resonance.

It is the final, perfect expression of the Shelby Principle. Google has provided the lightweight, aerodynamic chassis in the form of zero-friction vector embeddings. The quantum spin lattice provides the massive, thermodynamic V8 grunt.

When you drop the quantum engine into the geometric chassis, you bypass the brute-force bureaucracy of the Laputan cloud entirely. You achieve the holy grail of modern computing: a universal 3D indexer that maps the physical and digital world exactly as it exists—not as a flattened slice, but as a fully realized volume.

In effect, this drops the engine right into the chassis. It takes the abstract concept of quantum computing, connects it to a piece of consumer software everyone already understands (Google's search appliance), and delivers a definitive, functional endgame for the architecture you've been designing.

In closing, Google should open source the tech to become the standard bearer of 3D volumetric search. They have the tech. Question, do they have the vision?

Any questions?

The Dragonsnake ...

 

The Dragonsnake Cobra

Grunt ... a blurb written about the juice needed to run data centers, indirectly connects to Carroll Shelby, the ultimate outsider who reached out and learned from the drag strip guys on how to build engines with grunt, thus changing forever how to build car engines and cars able to win LeMans 4 times with the GT 40 at the expense of Ferrari, something thought impossible as Enzo had won the race 6 times prior to Ford's entry. 

History lesson :) 

The Dragonsnake Cobras were a small batch of production cars built by the famed racing driver and car builder, Carroll Shelby. From 1962, Shelby American had found success with their pairing of the lightweight, English roadster body of the AC Ace, with the American powerhouse of Ford’s V8 motors. The combination of the lightweight body, small dimensions and insane power output proved to be revolutionary in the sports car world, and the car did extremely well in competition globally. When most people think of the Shelby Cobras in competition, their mind goes to circuit racing, however the Dragonsnake also dominated the drag strip.

Ford GT40 Mk IV Thomas Quine - Winner at Le Mans

History lesson 2

 In the early 1960s, Ferrari engineered race cars by committee. They were the ultimate aristocratic, top-down operation, obsessed with the theoretical purity of their complex, fragile V12 engines. They operated on the assumption that their architectural pedigree and institutional funding would naturally dominate the track forever and for a time it worked. Carroll Shelby didn't try to copy their approach. Instead, he gathered a crew of Southern California hot-rodders, dropped a thermodynamically efficient American V8 into a lightweight chassis, and broke the European monopoly. Shelby didn't care about institutional roadmaps; he cared about volumetric efficiency on the track. He bypassed the bureaucracy and went straight for the grunt.

Today, the technology industry is paralyzed by the exact same aristocratic bloat. The modern Ferraris are the "Laputan" cloud models built by OpenAI, Anthropic, Google and the institutional ranks of IBM and significant others. They're attempting to solve the complexities of artificial intelligence and quantum computing by throwing infinite capital and heat at the problem—designing hundred-billion-dollar data centers that require their own nuclear reactors because pushing electrons through silicon generates friction and with friction comes heat, the tech killer extreme as immense power and cooling are required to keep the hardware from melting, which means, the tech, in the long term, is unsustainable. They're trapped in a financial and thermodynamic vapor lock, operating under the assumption brute-force, cloud-bound processing is the only way to map reality.

A Kerosene Lantern's Glow ...

But the real breakthrough isn't happening in those cloud server farms. It's happening on the edge, through localized, geometric engineering, where outliers push for change as the current way of doing things is no longer sustainable.

Just as Shelby changed the physical geometry of the engine rather than refining a fragile V12, the future of computing relies on fundamentally changing how we map information. When we look at the circuit dynamics of systems like IBM’s Heron 2 quantum processor, the lesson is identical: performance isn't unlocked by adhering blindly to a top-down corporate compiler stack. It is unlocked by treating the hardware as physical space.

By applying the principles of Constructive Solid Geometry (CSG)—defining 3D reality through Boolean logic and spatial boundaries—a localized, zero-friction AI can map the physical reality of a quantum spin lattice far better than a bloated cloud algorithm trying to flatten the universe into 2D math. The corporate models are trying to parse a three-dimensional reality with flat, relational logic.

CSG objects can be represented by binary trees, where leaves represent primitives, and nodes represent operations. In this figure, the nodes are labeled ∩ for intersection, ∪ for union, and — for difference.

The era of infinite cloud computing and brute-force processing has hit its thermodynamic wall.
The future belongs to the outliers and their connect to the edge.

One eye up, the other, down ...

The Laputian - Granville 1838, Illustration for Gulliver's Travels, (Alamy's copyright)

Why this work again? Because of what is happening regarding AI, the degradation of common sense and culture and lastly, the end of empire being run by idiots and zealots of all stripes channeling Elmer Gantry and immortality, all in the pursuit of money and power.

But to start off this conversation correctly requires a summary of Gulliver's 3rd voyage to Laputa
to show why this take by yours truly has legs.

Click here for Gulliver's Travels. :)

"HE COMMANDED HIS GENERALS TO DRAW UP THE TROOPS."

To wit

On Gulliver’s third voyage he is set adrift by pirates and eventually ends up on the flying island of Laputa. The people of Laputa all have one eye pointing inward and the other upward, and they are so lost in thought that they must be reminded to pay attention to the world around them. Though they are greatly concerned with mathematics and with music, they have no practical applications for their learning. Laputa is the home of the king of Balnibarbri, the continent below it. Gulliver is permitted to leave the island and visit Lagado, the capital city of Balnibarbri. He finds the farm fields in ruin and the people living in apparent squalor. Gulliver’s host explains that the inhabitants follow the prescriptions of a learned academy in the city, where the scientists undertake such wholly impractical projects as extracting sunbeams from cucumbers. Later Gulliver visits Glubbdubdrib, the island of sorcerers, and there he speaks with great men of the past and learns from them the lies of history. In the kingdom of Luggnagg he meets the struldbrugs, who are immortal but age as though they were mortal and are thus miserable. From Luggnagg he is able to sail to Japan and thence back to England.

Example one. The Constitution of Claude

Shutterstock / Futurism

There’s no AI company in the world more obsessed with the idea that their models
may be conscious than Anthropic.

According to new reporting from the New York Times, the company has for months been wining and dining religious scholars across the world in secret, NDA-secured meetings to convince them that AI models think and feel, too. 

Anthropic even reportedly went after the most iconic of all religious leaders: the Pope.

Christopher Olah, a cofounder and senior researcher at the Claude chatbot maker, aggressively lobbied the Vatican after learning Pope Leo XIV’s official position on AI, per the reporting.
His attempts, though, weren’t successful.

In May, the Pope published his first papal treatise, or encyclical. Titled “Magnifica Humanitas,” one of its chief concerns was upholding the sanctity of human life in an age of AI. The Pope didn’t mince words on the topic of AI consciousness.

“So-called artificial intelligences do not undergo experiences, do not possess a body, do not feel joy or pain, do not mature through relationships and do not know from within what love, work, friendship or responsibility mean,” the Pope wrote in the religious document. 

Example 2 - The Bibi/Trump Iranian war fiasco

Iago came to Washington and whispered in Othello's ear. Destroy Iran for Greater Israel. 

Let it be written, let it be done - Rameses

No big links here, just yours truly's take on a possible WWIII foisted upon the world

by two monsters, one sane and calculating, the other demented and insane.

Click here to see why this take rings true.

Self inflicted stupidity reigns supreme here regarding the Israeli US war against Iran, a disaster started in 1953 when the CIA placed democratically elected prime minister Mosaddegh under house arrest in order for England to get Iranian oil. 

Initial conditions rule.

Example 3. Starmind

Think Giedi Prime and why the Space Elevator makes sense while Starmind does not. 

Giedi Prime is an industrial wasteland with a low photosynthetic potential, the planet's bio-resources depleted and its environment fouled with industrial pollution.[4] Rich in mineral resources, the economy of the planet is based on mining, refineries, and industrial manufacture. In Dune, Baron Vladimir Harkonnen and his heirs live in the "family city of Harko."[4]

Due to its ravaged environment, Giedi Prime has to import almost all of its food. Society on Giedi Prime has evolved around power and conquest, and the weak rarely survive.

Gammu - AKA Giedi Prime

Any questions?