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Race to AGI Daily Digest - Saturday, December 13, 2025
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TLDR
Markets hit pause on AI capex exuberance
AVGO -11.4% on AI infrastructure fears
Oracle–OpenAI bet fuels community debate
Banks double down on enterprise LLM adoption
The Full Story
Public markets finally pushed back on the AI buildout today. After Oracle’s latest capex surprise and a Broadcom margin warning, the sector’s high-beta names sold off hard, crystallizing the question behind our investors-demand-discipline narrative: how much AI infrastructure is too much, too fast. Read the market reaction →
Chip and infra bellwethers bore the brunt. AVGO closed down roughly 11 percent, with AMD, Oracle, Intel, and TSM off around 4–5 percent as traders reassessed multi-hundred-billion-dollar AI bets. See AVGO profile → The message was not that AI is over, but that the cost of capital is back in the room.
That cost is increasingly coming from lenders rather than equity. A separate report describes the AI data center boom leaning harder on bonds, private credit, and securitization, pushing more of the AGI race onto leveraged balance sheets. If model demand underdelivers, it will not just be cloud equity holders that feel the pain. Track this narrative →
Yet real-world adoption continues. BBVA’s decision to roll out ChatGPT Enterprise across its workforce shows that large, risk-averse institutions are now embedding frontier models into daily workflows, strengthening OpenAI’s enterprise franchise even as its infra partners get marked down. View OpenAI profile → Full deal coverage →
On social channels, the funding shift is being litigated in real time. One widely read Hacker News thread frames Oracle’s roughly 300 billion dollar AI push as a painful overreach tied to its OpenAI alignment. Join the discussion → Another celebrates macOS 26.2 enabling fast AI clusters over Thunderbolt, a reminder that developers are eager to route around hyperscaler constraints when economics allow. See the HN thread →
The next phase of the race will be defined less by who can announce the largest capex line, and more by who can convert those dollars into durable productivity gains. Today’s market slap suggests that access to capital will increasingly track demonstrated AI ROI, not just ambition.
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