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Ghislaine Maxwell Says Father Was Intelligence Asset, Trump ‘Was Never Inappropriate’: DOJ Transcripts

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Ghislaine Maxwell Says Father Was Intelligence Asset, Trump ‘Was Never Inappropriate’: DOJ Transcripts

The DOJ has just released transcripts and audio from two days of interviews last month with Jeffrey Epstein accomplice Ghislaine Maxwell, who said that President Trump was “never inappropriate with anybody” while he and Epstein were associates, and that her father was an intelligence asset. 

“Did you ever hear Mr. Epstein or anybody say that President Trump had done anything inappropriate with masseuses or with anybody in your world?” asked Deputy Attorney General Todd Blanche in Tallahassee, Florida last month.  

“Absolutely never, in any context,” Maxwell replied. 

“I never witnessed the President in any inappropriate setting in any way,” Maxwell said in another segment. 

Maxwell also said her father, the late Robert Maxwell, was an intelligence asset…

Robert Maxwell, a media tycoon and former Labour MP, was notably given a state funeral in Jerusalem after ‘accidentally’ falling off his Yacht, the “Lady Ghislaine.” He was long speculated to have been a secret agent for the Mossad, the Israeli intelligence office that is equivalent to the CIA. By proxy, that suspicion has led to speculation that the intelligence agency Epstein was associated with was the Mossad as well.

“It’s not beyond the realm of possibility that Epstein had connections to the [Israeli intelligence community],” said Miami Herald investigative reporter Julie K. Brown, whose investigative reporting was the reason that the Epstein case was reopened after it was buried by federal prosecutors in 2008. “Robert Maxwell certainly had those kinds of connections, and Epstein had a close relationship with Robert Maxwell.“

Ghislaine, however, said that her father and Epstein never met. 

She also does not believe Epstein killed himself. She also provided some tricky answers about Mossad…

“I do not believe he died by suicide,” said Maxwell, who added that she has no idea who might have killed him. 

Also interesting is that Ghislaine admitted to being “part of the beginning process of the Clinton Global Initiative.”

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Tyler Durden
Fri, 08/22/2025 – 20:30

Washington D.C. Has The Highest Unemployment Rate In The Nation

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Washington D.C. Has The Highest Unemployment Rate In The Nation

The U.S. labor market remains resilient in 2025, but unemployment figures vary widely by state.

While the national unemployment rate stood at 4.1% in June, some regions are experiencing far higher (or far lower) joblessness.

This visualization, via Visual Capitalist’s Niccolo Conte, highlights the unemployment rate by state using data from the Bureau of Labor Statistics for June 2025.

Washington D.C. Tops Unemployment by State

Washington D.C. tops the list with the highest unemployment rate at 5.9%, as seen in the data table below with the unemployment rate of every U.S. state (and D.C.).

The capital’s high rate marks a significant jump from 5.0% in early 2024, suggesting rising challenges in the capital’s job market amidst Trump’s layoffs across federal agencies.

Nevada (5.4%) and California (5.4%) follow closely behind, reflecting persistent difficulties in sectors like tourism, entertainment, and technology.

Michigan (5.3%) also ranks among the hardest hit, driven by weakness in manufacturing.

The States with the Lowest Unemployment Rates

At the other end of the spectrum, South Dakota recorded the lowest unemployment rate at just 1.8%.

North Dakota (2.5%) and Vermont (2.6%) also reported very low levels of unemployment, underscoring the relative strength of smaller state economies.

Montana and Hawaii, both at 2.8%, round out the bottom five, showing stability even in some tourism-driven markets.

While the U.S. national unemployment rate of 4.1% is slightly above the lows seen during the post-pandemic recovery, the range between the highest and lowest states—more than four percentage points—illustrates the uneven nature of the labor market in America.

To learn more about the challenges Americans are facing, check out the graphic on the cost of the American dream on Voronoi, the new app from Visual Capitalist.

Tyler Durden
Fri, 08/22/2025 – 19:40

How Managers Are Using AI To Hire And Fire People

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How Managers Are Using AI To Hire And Fire People

Authored by Autumn Spredemann via The Epoch Times (emphasis ours),

The role of artificial intelligence (AI) in the workplace is evolving rapidly, and some are warning that using AI to make executive decisions without careful consideration could backfire.

Illustration by The Epoch Times, Getty Images

AI is being used more and more in recruitment, hiring, and performance evaluations that could lead to a promotion or termination.

Researchers, legal experts, legislators, and groups such as Human Rights Watch have expressed concern over the potential that AI algorithms are a gateway to ethical quagmires, including marginalization and discrimination in the workplace.

This warning bell isn’t new, but with more managers using AI to assist with important staff decisions, the risk of reducing employees to numbers and graphs also grows.

A Resume Builder survey released in June found that among a group of 1,342 managers in the United States, 78 percent use AI tools to determine raises, 77 percent use it for promotions, 66 percent use it for layoffs, and 64 percent use it for terminations.

The use of AI as a human resource tool is already a cautionary tale. In an unprecedented 2023 workplace discrimination case, digital labor platform iTutorGroup paid $365,000 to settle a federal lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC).

The English language tutoring service was forced to pay damages to job applicants who were filtered out by its AI algorithm. The company used an AI algorithm that automatically rejected more than 200 applicants based on their age. The candidates were automatically disqualified if, in the case of women, they were older than 55 years old. Male applicants 60 years and older were also rejected.

“Hundreds of applicants lost out on employment during a difficult time for job seekers,” Timothy Riera, acting director of the EEOC’s New York District, said in a statement.

Avoiding Dehumanization

Civil regulations and government legislation are being put forward as a guardrail against the use of AI to evaluate and monitor employee performance.

In March, the California Civil Rights Council finalized its regulations surrounding AI decision-making systems in the workplace, which go into effect on Oct. 1. The regulations include protections for employees against the use of AI systems to increase company efficiency. This encompasses actions such as hiring assistance, firing, and promotions.

At the federal level, Sen. Chuck Grassley (R-Iowa) introduced the AI Whistle Blower Protection Act in May. If passed, the bill will offer employment compensation and protection from retaliation to those working directly with AI who choose to disclose issues with these systems.

“Today, too many people working in AI feel they’re unable to speak up when they see something wrong. Whistleblowers are one of the best ways to ensure Congress keeps pace as the AI industry rapidly develops,” Grassley said.

Additionally, the states of Illinois, California, and New York have proposed, introduced, or passed legislation aimed at protecting workers from AI algorithmic discrimination in areas including recruitment, hiring, promotion, employment renewal, discipline, and training.

Business owners, AI experts, and managers using these digital tools to make decisions affecting employees have stressed the need for human oversight.

“I’ve used AI in recruitment. Tools like ChatGPT-powered screening systems and resume parsers have been game-changers,” AI expert and consultant Peter Swain told The Epoch Times.

Swain is the CEO of a namesake company that focuses on helping entrepreneurs strike a balance between AI systems and their human workforce. He illustrated the pros and cons of using AI systems to handle executive tasks.

“Advantages? Speed and scalability—AI can process 1,000 resumes in the time it takes a human to read 10. It also reduces bias if trained properly,” Swain said.

“Disadvantages? Garbage in, garbage out. If the AI is trained on biased data, it perpetuates those biases. Plus, it lacks the human touch—cultural fit and soft skills can’t be fully assessed by an algorithm.”

Data-driven tasks are where AI tools tend to shine, Swain said, but using them for actions such as raises, promotions, and layoffs is “tricky territory.”

“I’ve dabbled with AI-driven performance analytics—tracking [key performance indicators], productivity … but I’d never let it make the final call,” he said. “It’s a tool, not a decision-maker. The risk is dehumanization, reducing people to data points.”

Swain also called AI’s use in managerial decisions an ethical “minefield.”

“AI can amplify biases if not carefully monitored—think gender, race, or age discrimination baked into training data,” he said. “Transparency is key. Employees need to know how decisions are made and have recourse to challenge them. Accountability matters—if AI screws up, who’s responsible? You can’t just blame the machine.”

A software company’s booth during the AI+Expo Special Competitive Studies Project in Washington on June 2, 2025. As AI technology advances, its use in company administrative work has become more common. Madalina Vasiliu/The Epoch Times

Volumes of Data

Stephen Engel, CEO of Sanative Recovery and Wellness, told The Epoch Times that he recently used the AI chatbot ChatGPT to assist with deciding whether to fire an employee.

He said that although AI didn’t make the final decision, its ability to handle volumes of data quickly allows managers to think more clearly and “step back from the emotion of the situation” and analyze situations more objectively.

“To me, that’s the real value of AI in this context. … It allowed me to think through the situation, weigh options more rationally, and ultimately decide on the best course of action,” Engel said.

“I also used ChatGPT afterward to help guide my thinking about what qualities and strengths to prioritize for my next hire. Again, not as a replacement for human judgment, but as a tool to focus my thinking.”

Some business owners use AI tools to identify employees who need help.

“Our AI voice simulations let new employees engage in realistic mock calls from day one. These interactions are scored automatically and paired with coaching opportunities. It’s a way to see quickly who’s progressing and who might need more support,” Lonnie Johnston, CEO of the training platform WizeCamel, told The Epoch Times.

“Our platform helps surface employees who are struggling early and tracks whether they are improving on an acceptable schedule.”

He gave a recent example of how AI evaluations provided data to help supervisors make decisions.

Read the rest here…

Tyler Durden
Fri, 08/22/2025 – 19:15

India, Russia Set $100BN Trade Target, Rejecting US Pushback

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India, Russia Set $100BN Trade Target, Rejecting US Pushback

Via The Cradle

India and Russia plan to increase their annual trade to $100 billion over the next five years – an increase of 50% – despite US opposition to the growing cooperation between New Delhi and Moscow, a top Indian minister announced on Thursday.

During the first day of a three-day visit to Moscow on Wednesday, Indian External Affairs Minister Subrahmanyam Jaishankar emphasized the need for India and Russia to broaden their trade ties, foster additional joint ventures between their companies, and hold more frequent meetings to resolve issues such as payment systems. Russia ranks as India’s fourth-largest trade partner, while India holds the position of Russia’s second-largest.

Via Associated Press

“We are all acutely aware that we are meeting in the backdrop of a complex geopolitical situation. Our leaders remain closely and regularly engaged,” he said while speaking at the India–Russia Business Forum in the Russian capital.

Jaishankar added that rising global uncertainty puts the emphasis back on “dependable and steady partners.”

Economic uncertainty has come from recent actions taken by US President Donald Trump to punish India for its ongoing purchases of Russian oil.

New Delhi’s purchases of Russian crude skyrocketed after the start of the war with Ukraine in 2022. After its oil exports to Europe collapsed in the wake of the war, Russia turned to India, offering steep discounts.

In response, Trump has imposed a 25% tariff on Indian goods, saying the oil purchases help fund Russian President Vladimir Putin’s “war machine.” Trump has threatened to raise tariffs on India further, to 50 percent, a rate high enough to ensure Indian exports to the US will not be competitive.

In response, India has said it has the right to buy oil from the cheapest source, calling the tariffs “unreasonable.“

Following Trump’s threats, India’s state refiners began last week to buy large volumes of non-Russian crude. Indian Oil Corp. and Bharat Petroleum Corp. have purchased oil from multiple alternate suppliers in recent weeks, including suppliers in the US, Brazil, and Gulf states, for October delivery.

Private Indian refiners are expected to continue purchasing Russian oil per the long-term contracts they have previously signed. Earlier this month, India halted plans to purchase US weapons and military aircraft in response to President Trump’s tariffs on New Delhi’s exports.

“India had been planning to send Defense Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been cancelled,” two sources speaking with Reuters said. 

In February this year, Trump and India’s Prime Minister Narendra Modi announced plans for the procurement and joint production of Stryker combat vehicles made by General Dynamics Land Systems and Javelin anti-tank missiles made by Raytheon and Lockheed Martin.

The sources told Reuters that India’s defense minister was also planning to announce the purchase of six Boeing P-8I reconnaissance aircraft and support systems for the Indian Navy during the trip to Washington, which has now been canceled. 

Tyler Durden
Fri, 08/22/2025 – 18:50

Trump’s Tariffs Will Reduce Deficits By $4 Trillion Over Next Decade, Says CBO Report

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Trump’s Tariffs Will Reduce Deficits By $4 Trillion Over Next Decade, Says CBO Report

Authored by Jack Phillips via The Epoch Times,

A report released on Friday by the Congressional Budget Office (CBO) predicted that President Donald Trump’s tariffs will reduce federal deficits by around $4 trillion over the next decade.

If Trump’s global tariff hikes continue, increased revenue could shrink primary deficits by $3.3 trillion and cut federal interest payments by $0.7 trillion over the next decade, the CBO said. The current top tariff rates may not hold as negotiations with trading partners and international legal challenges are ongoing.

“We estimate that the effective tariff rate for goods imported into the United States has increased by about 18 percentage points when measured against 2024 trade flows,” the budget office said in its report, adding that Trump’s tariffs would reduce “the need for federal borrowing.”

The CBO also said it “projects further increases in tariff revenues in the coming months” and that “if there are no further changes in tariff rates, we project that customs duties from new and existing tariffs will total about $200 billion this fiscal year.”

But the office cautioned that revenues often lag several months behind the implementation of tariff policies, noting that once the rates are in effect, they don’t get applied to goods that are already in transit to the United States.

“In addition, importers have the option to delay payments by up to six weeks by participating in Customs and Border Protection’s Periodic Monthly Statement program,” added the CBO, which is a federal agency within the legislative branch that provides budget and economic information to both houses of Congress.

In July, Congress passed the GOP-backed One Big Beautiful Bill Act that contained several major Trump priorities on energy, the border, spending, and tax cuts. The CBO has said that it would add around $3.4 trillion to the national deficit over the coming decade, although the White House has disputed those figures.

The Trump administration has also said that the tariffs and policies initiated under the One Big Beautiful Bill Act, which Trump backed and signed into law, would bring forth economic growth over the coming years that would offset any additions to the national deficit.

“It was the largest tax cut for middle and working class families in our nation’s history, and the president wants to see this country get our fiscal house in order. That’s why this was a fiscally responsible bill,” White House press secretary Karoline Leavitt told reporters on July 21 in response to the CBO report on the bill.

In a statement on Thursday, the White House again touted the bill by posting excerpts from a series of recent newspaper articles that praised the measure. Earlier this month, the administration also said that Americans would see an average tax cut of $3,752 under the bill, citing a report from nonprofit organization the Tax Foundation.

Friday’s report from the CBO comes as Canadian Prime Minister Mark Carney announced that Canada would scrap some of its retaliatory tariffs against the United States. Trump imposed tariffs on Canada and Mexico earlier this year, saying those measures were necessary to curb illegal immigration and fentanyl trafficking into the country.

“We have the best deal of anyone in the world right now,” Carney told reporters in Ottawa. “Today, the Government of Canada is harmonizing its tariffs with the U.S.”

Tyler Durden
Fri, 08/22/2025 – 18:25

Dutch Foreign Minister Steps Down After Israel Sanctions Blocked, Caretaker Govt Fragments

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Dutch Foreign Minister Steps Down After Israel Sanctions Blocked, Caretaker Govt Fragments

Dutch parliament is fiercely divided on whether it should take more measures which add teeth to recent actions calling out Israel for the mounting civilian death toll and starvation conditions in the Gaza Strip. Just last month, the hardline Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich, who actively assist in Jewish settler expansion in the West Bank, were formally declared persona non grata in the Netherlands.

On Friday, following a five-hour parliamentary debate which made clear that the caretaker government is divided, foreign minister Casper Veldkamp (center-right New Social Contract party) stepped down in protest after members of his own cabinet blocked new sanctions measures imposed on Israel.

Caspar Veldkamp, file image

Veldkamp acknowledged that the government had already made positive moves, but he explained, “I felt resistance in the cabinet against more measures as a result of what is happening in Gaza City and the occupied West Bank at the moment.”

“I find myself unable to implement meaningful additional steps to increase pressure on Israel,” he added in a statement to the press. He felt ‘constrained’ on the vital issue, Veldmamp described.

Bloomberg observes that Veldkamp has “faced resistance to his stance from some members of the caretaker coalition that has run the Netherlands since the government collapsed in June.”

Over twenty countries, including many in Europe and Netherlands among them, have this week signed a joint declaration condemning Israel’s approval of a major West Bank settlement project, dubbing it “unacceptable and contrary to international law.” However, Veldkamp and some in parliament have wanted to go beyond mere symbolic acts.

Parallel to the situation in the United States, the Dutch right is beginning to split on Israel – as more and more conservatives, and especially young people begin to question their governments’ constant support of Israel – or at least lack of accountability when it comes to Tel Aviv’s actions.

The political landscape on the Right in The Netherlands has always been supportive of Israel. But the shift is illustrated by parties like the Forum for Democracy (FvD), which have led the most vocal criticisms of Israel – and from the Right. Though its founding its relatively recent (2015), party leader and founder Thierry Baudet has described to ZeroHedge that FvD – despite currently having just a handful of seats in parliament – is the single largest party by membership in The Netherlands.

MP Baudet previously took to the parliament floor where he spoke inconvenient truths, and made clear his position that what the Israeli government is doing in Gaza goes too far:

“All of the Netherlands was wondering why the cabinet actually fell. I already raised the question on June 4th last year: did the cabinet perhaps fall over Gaza – not over immigration?” Baudet questioned.

Baudet continued in his earlier this summer parliament address, “Could it be that Geert Wilders [who resigned in June pulling his party out of government and toppled the ruling coalition] foresaw today’s clash, in which he would inevitably face opposition from a majority of the House – for whom expelling, killing, or starving all of Gaza would go too far?“

Indeed the issue has become a growing flashpoint, also as on Friday the UN declared a state of famine in parts of Gaza, ahead of the October 29 general elections.

The Dutch ‘far-right’ party Forum for Democracy has been forging relationships with Trump admin officials, and also with conservative/libertarian-leaning anti-Israel movements in the United States…

Division in Dutch parliament and within the caretaker government is only likely to grow more intense between now and then, and could translate into wins for parties critical of Israel and movements like FvD picking up many more seats.

* * *

Some of FvD party leader Thierry Baudet’s latest statements before parliament (auto-dubbed):

“The complete destruction of Gaza and the colonization of the West Bank is morally unacceptable, unacceptable from a humanitarian perspective, and moreover, disastrous for everyone involved: for the Palestinians, for Europe, and for the Israelis themselves. This is why the FVD (Foundation for Freedom and Democracy) supports sanctions against both Hamas and the Netanyahu government,” the MP has said.

Tyler Durden
Fri, 08/22/2025 – 18:00

Trump Reinstates FBI Whistleblowers Punished By Biden, Grants Back Pay

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Trump Reinstates FBI Whistleblowers Punished By Biden, Grants Back Pay

Authored by Luis Cornelio via Headline USA,

FBI Director Kashyap Patel claimed on Thursday that nearly a dozen whistleblowers punished by the Biden administration would be reinstated with back pay.

Patel said that 10 FBI agents would be impacted and added that their security clearances would also be restored.

The move will likely come in the form of settlements with the assistance of Senate Judiciary Committee Chairman Chuck Grassley.

“We greatly appreciate @realDonaldTrump commitment to transparency and accountability,” Patel wrote on X.

While Patel did not specify which agents would benefit, the Biden-era FBI faced countless accusations of bias and weaponization.

Whistleblower testimony exposed how the FBI sought to tie President Donald Trump to the Jan. 6 protests of the 2020 election.

Other testimony revealed that the bureau justified surveillance and other powers by citing distorted data about “domestic violent extremists,” all based on the single events of Jan. 6.

Patel’s move followed Trump’s purge of the FBI and DOJ, removing corrupt and biased officials tied to whistleblower accusations. There has been some debate over whether Patel’s move came later than expected.

Tyler Durden
Fri, 08/22/2025 – 14:45

Awkward: “Brazen Election Cheating” Allegations Rock Minneapolis Mayoral Endorsement

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Awkward: “Brazen Election Cheating” Allegations Rock Minneapolis Mayoral Endorsement

Minnesota Democratic–Farmer–Labor Party stripped the party’s endorsement of radical leftist Minnesota state Sen. Omar Fateh in the Minneapolis mayoral race over “brazen cheating.” The emerging election cheating scandal hilariously occurred amongst Democrats. Awkwardly, this comes from the same party of woke leftists that insists U.S. elections are the “safest in the world” and free from manipulation. Clearly, this corrupt party that serves progressive elites – not the working class – wants a do-over in this local election. 

On Thursday, Minnesota DFL chair Richard Carlbom wrote in a statement, “After a thoughtful and transparent review of the challenges, the Constitution, Bylaws & Rules Committee found substantial failures in the Minneapolis Convention’s voting process on July 19, including an acknowledgement that a mayoral candidate was errantly eliminated from contention.”

Carlbom added, “Now it’s time to turn our focus to unity and our common goal: electing DFL leaders focused on making life more affordable for Minnesotans and holding Republicans accountable for the chaos and confusion they’ve unleashed on Minnesotans.”

A series of challenges were submitted to the Minnesota DFL after last month’s convention, citing serious issues with the electronic voting system and raising questions about election integrity in Fateh’s endorsement over incumbent Jacob Frey. The Minneapolis DFL also recognized it had erroneously eliminated DeWayne Davis after the first round of voting due to 176 undercounted votes.

Jonathan Turley chimed in on X about Fateh’s short-lived endorsement, 

“Omar Fateh is accusing fellow democrats of being effectively election deniers who are claiming election machine voting was flawed. Sounds familiar. As with Hogg after the DNC election, the party is planning a do-over.”

Turley couldn’t be more right… Fateh’s campaign claimed that “establishment Democrats, including many Frey supporters,” coordinated the effort to nuke his endorsement.

Meanwhile, Fateh’s brother-in-law…

If Democrats are willing to cheat in local elections, especially against themselves, then how about revisiting the 2020 presidential election?

Tyler Durden
Fri, 08/22/2025 – 14:25

Everything That’s Wrong With The Leftist Media In One (Now Deleted) Post…

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Everything That’s Wrong With The Leftist Media In One (Now Deleted) Post…

Authored by Steve Watson via Modernity.news,

After video of a man being detained by ICE Wednesday quickly circulated, one reporter suggested that it would never be revealed who he is or where he had been taken, only for all those details to emerge just minutes later, and completely humiliate the ‘journalist’.

The footage shows the guy trying to get away from ICE in DC, but being detained and then crying and whining like a baby.

Miami Herald ‘investigative journalist’ Julie Brown published a post whinging that “his crying…hits me in the gut.”

“We will probably never be told who he is, why he was stopped or if he was here illegally,” she added.

She soon got an answer as an NBC reporter revealed that ICE confirmed the guy’s name, that he was illegally here from Mexico and had been previously arrested and charged with sexual battery against a 13 year-old-child.

Ms Brown instantly deleted her previous post.

The internet is forever.

It just keeps happening.

Fox News anchor Jessica Tarlov also deleted a post after writing “This doesn’t make D.C. safer. It’ll just make people not come to D.C. The cruelty is always the point.”

Trump advisor Stephen Miller called her out and she had to eat crow.

The Democrats are now literally the party of pro illegal immigration and a desire for continued rampant criminality.

Have these ‘journalists’ ever heard of verifying facts before splurting out their TDS riddled shit-posts.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden
Fri, 08/22/2025 – 14:00

Beyond The Data Center: Goldman’s Silicon Valley Field Trip Finds AI Moving From Chips To Workflows

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Beyond The Data Center: Goldman’s Silicon Valley Field Trip Finds AI Moving From Chips To Workflows

Goldman analysts led by George Tong returned to Silicon Valley for their second AI field trip, meeting with AI startups, public companies, VCs, and professors from Stanford, UCSF, and UC Berkeley to assess whether corporate America is truly embracing generative AI. The visit comes as record AI capex fuels record hyperscale data center buildouts nationwide, while investors search for clues on whether the adoption phase will materialize: a shift beyond infrastructure into the application layer.

“Insights indicate AI labs are expanding from the infrastructure layer to the application layer and LLM costs are sharply declining though capex may continue to rise as Gen AI usage and adoption grows,” Tong wrote in a note to clients on Friday. 

He continued: “Academic research on LLM technologies could further bring down costs. While software development costs are falling and increasing competitive and pricing risks, moats in application AI and SaaS companies include broader user distribution, engagement with power users to drive reinforcement learning from feedback loops, integration into workflows and leveraging proprietary data.“

Tong’s discussions with Silicon Valley business and academic leaders point to an acceleration in generative AI adoption starting in 2026. 

Here’s a summary of the findings:

  • Shift from infrastructure to applications: AI innovation is moving beyond chips and cloud (Nvidia, GPUs, etc.) toward actual end-user applications and vertical software solutions.

  • LLM costs are sliding: Training and using large language models is getting cheaper, though capex will still rise as usage expands. Academia is helping reduce costs: University research may accelerate efficiency gains in AI models.

  • Software development deflation: Building with AI is cheaper and faster, but that means higher competition and pricing pressure for software companies.

Tong said the conversations in Silicon Valley point to “positive implications” for S&P Global, Moody’s, Iron Mountain, Verisk Analytics, and Thomson Reuters. He noted that his team has initiated coverage on McGraw-Hill with a “Buy” rating and a $27 12-month price target based on a “digital transformation” in the education space. 

The analyst provided clients with a “chart of the week” that showed how McGraw-Hill is leveraging AI to improve product efficacy and drive growth. 

Is the AI rate adoption (read here) enough to justify this record capex spending (more details here) by hyperscalers? 

Let’s hope so, or AI stocks face a hefty correction. 

More in the full Goldman note available to pro subs.

Tyler Durden
Fri, 08/22/2025 – 13:40