The General Purpose Technology (“GPT”) AI Beast and Summary Execution of Its Breeder

The fortnight ended on November 13, 2026, interesting news items to look at for the past fortnight are:

The General Purpose Technology (“GPT”) AI Beast and Summary Execution of Its Breeder: There was no doubt that the most talked-about topic in the past week’s chat groups was the summary execution of Nvidia’s CEO. By summary execution, I mean the putting to “death” of a person accused of a crime immediately after the accusation, without the benefit of a full, free, and fair trial, and in the case of Jensen Huang, the absence of even a thorough investigation. This was despite the Singapore Police, Customs and Public Prosecutors beginning an investigation in February 2025 and concluding in June 2026 that Alice Huang and Megaspeed had no case to answer. The U.S. Commerce Department also investigated Alice Huang in June 2025 in Singapore, and no formal accusations were levied.

It took just 14 days, a tsunami of rumors and innuendos in the media, and a loss of $1.2 trillion in stock market value of Nvidia’s stock to break Jensen Huang. A timeline of the events can be found in Fig. 1 below.

In the following paragraphs, I like to examine  the pivotal role Huang played in nurturing the AI GPT beast, the potential fallout from his resignation, and then some conjectures as to  the butterfly effects and collateral damages.

1. Genesis of AI GPT  - The idea of AI GPT was conceived by Jensen Huang with the acquisition of Mellanox in March 2019. Mellanox is an Israeli technology corporation and specializes in high-throughput, ultra-low-latency data center interconnects that allow massive compute clusters to share data without bottlenecks. With the GPU in place for the brain cells and a potential neural network acquired, Huang set out to create an ecosystem for AGI (“Artificial General Intelligence”).

Earlier in 2015, Sam Altman, Elon Musk, Reid Hoffman, Peter Thiel, Jessica Livingston, Amazon Web Services (AWS), Infosys, and YC Research were the first donors and cofounders of the non-profit OpenAI Foundation. (Fig. 2).

It was in 2019 that Huang persuaded Sam Altman and Satya Nadella (Chairman & CEO - Microsoft) to start building a much more powerful environment to train GPT-2. (GPT-1 Generative Pre-trained Transformer 1 began in June 2018 and had only 118 million parameters, but GPT-2 Generative Pre-trained Transformer 2, scaled up the size and dataset drastically with 1.5 billion parameters.  It generated surprisingly coherent, human-like text just from a short prompt (zero-shot learning).

To raise billions of dollars for computing power, the nonprofit OpenAI Foundation created a "capped-profit" subsidiary called OpenAI LP. Investor returns were capped at 100 times their original investment, with any excess profits flowing back to the nonprofit. Microsoft would invest $1 billion in cash with OpenAI LP, with an agreement to run its resource-intensive AI training and workloads exclusively on Microsoft Azure, turning Azure into its exclusive cloud computing partner. Microsoft became OpenAI's preferred commercialization partner, granting Microsoft the rights to license and integrate OpenAI's technologies into its consumer and enterprise products, and Nvidia was there to capture the resource and money flows (Fig. 3).

Fast forward to November 2026, as of 14 November 2026, NVIDIA is no longer simply a GPU supplier. It occupies several positions in the AI infrastructure financing chain:

(a) Equipment supplier – sells GPUs, networking, servers, and complete AI systems.

(b) Equity investor – invests in companies that subsequently purchase NVIDIA equipment

(c) Capacity lessee and buyer commits to purchasing computing capacity from cloud operators.

(d) Credit enhancer—provides purchase commitments, guarantees, and backstops that help cloud operators secure external financing.

(e) Technology and infrastructure partner—collaborates on data-centre design, deployment, and software.

Yes, Jensen Huang was personally at the centre of every AI infrastructure provider in the US, all the hyperscalers (Microsoft, Google, Meta, Amazon and Oracle) all the Neocloud specialists (CoreWeave, Lambda, IREN, Nscale), the frontier AI Labs (ChatGPT and Anthropic), and financiers (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR, and SoftBank). (Fig. 4)

Now, let’s turn our attention to the flow of money in AI trading—Bank of America Global Research provided data in mid-2026 on free cash flow between mega-cap cloud providers and their primary silicon suppliers. (Fig. 5).

Guess who wants to wreck this train in November 2026.

2. Cui Bono and Potential Fallouts — There were numerous rumors of a palace power struggle to dethrone Jensen Huang. Using Cui Bono analysis ("to whose benefit?”) I will eliminate a number of web suggestions.

(a) It shouldn’t be the U.S. administration that wants a change at the helm of Nvidia on racial grounds—the Taiwanese are in fumes because their golden boy is suspected to be replaced by a big white chief.  Nvidia has $67 billion worth of 600,000 H200 chips stuck in Hong Kong since January 2026 because Xi does not want such imports to detract from local Chinese AI chip substitutions. The Alice Huang smuggling from S.E. Asia into China  story is a red herring and has already been discredited by the Singapore Authority. The U.S. Justice Department also confirmed that it has never accused Huang of espionage.

(b) It should not be a Trojan Horse takeover of Nvidia by IDF (Israel Defense Forces) through Mellanox. AI chips are primarily manufactured in Taiwan, and memory chips are from South Korea and Taiwan. What more is there to gain?

(c) It should not be the closed-source frontier LLM labs or hyperscalers because Jansen Huang is a proponent of open-source AI—water at the Jansen Huang AI ecosystem runs very deep, and friendly fire against AI-related stock valuation is easily triggered. In any case, competition from China’s open-source LLM is not dependent on China having Nvidia chips.

Now let’s follow the money as to who made money from the Huang fallout. (Fig. 6).

This chart captures the winners and losers for the two weeks of the Jensen Huang's Alicegate incident: NVDQ (+65.36% - a Single-stock inverse fund targeting Nvidia), GPTS (+14.45% - European-listed ETP (LSE/Borsa Italiana) shorting major AI names like Microsoft, Amazon, Apple, and Palantir.), AIBD (+9.27% - Tracks the inverse of the Solactive US AI & Big Data Index), Amazon (+5.84%), Microsoft (-1.13%), Oracle (-1.47%), Nasdaq (-4.67%), TSMC (-6.36%), SOX (-8.9% - The Philadelphia Semiconductor Index), META (-9.67%), Micron (-13.08%), Google (-13.55%), Coreweave (-15.56%) and NVIDIA (-24.85%).

In my estimation, the primary suspect of using rumor mills, social media, fake news, and negative momentum in the stock market to achieve spectacular gains would include:

Leopold Aschenbrenner (Situational Awareness LP). The former OpenAI researcher shifted from being a major AI bull to placing roughly $8 billion in bearish bets across major AI and semiconductor companies. His disclosed exposure includes a $1.5 billion put-option bet against Nvidia, along with short positions targeting Broadcom, Oracle, AMD, Micron, ASML, Intel, and Corning.

Michael (The Big Short) Burry (Scion Asset Management / Cassandra Unchained). In addition to his well-known bets against Nvidia, Palantir, Tesla, and Micron, Burry expanded his AI short book to target Oracle, Nebius, Applied Materials, and broader tech and chip benchmarks like the iShares Semiconductor ETF (SOXX) and Invesco QQQ Trust (QQQ).

I rest my case.

What goes around comes around— the US invented derivatives, social media and faked news as financial weapons of mass destruction to raid foreign nations, and the consequences of her actions—whether good or bad—will eventually return to the US.

Hosea 8:7  "They sow the wind, And reap the whirlwind. The stalk has no bud; It shall never produce meal. If it should produce, Aliens would swallow it up. 

 

The Sum of All Fears

The week ended on October 30, 2026, interesting news items to look at for the past fortnight are:

The Sum of All Fears: The title of this Blog came from Winston Churchill: "Why, you may take the most gallant sailor, the most intrepid airman or the most audacious soldier, put them at a table together - what do you get? The sum of their fears." (Fig. 1).

Modern interpretation of the quote is “when leaders, military commanders, or rival nations sit down with built-in mistrust, they do not find calm or reason; instead, individual insecurities, miscalculations, and worst-case scenarios multiply into a collective panic.” This pretty much sums up the sentiment prevailing in global Geopolitics and Geo-economics as we come toward the end of 2026.

1. Rage in the Streets Across Europe - Generational rage and widespread social unrest are sweeping through European cities, fueled by a potent mix of economic stagnation, underfunded education, and an acute housing crisis. Driven primarily by Gen Z youth and coordinated through social media, the uncoordinated movements have seen hundreds of thousands of people take to the streets. In France, initial student strikes over dilapidated schools escalated into severe nationwide riots and curfews, while tens of thousands in Italy have blockaded landmarks like the Colosseum to protest surging living costs and military spending. Across Spain and Portugal, tent cities have been erected by activists demanding affordable housing, as the unrest spreads to Germany and Eastern Europe ahead of a major continental election cycle. (Fig. 2).

European leaders are at their wits’ end as to how to solve all the issues that have plagued the nations on the Continent. Historians and philosophers ascribed the fall of the West to four reasons and termed them “The Four Stupidities of Declining Civilizations.” (Fig. 3)

(i) Solving Every Problem Until Solutions Kill You: Adding layers of bureaucracy and taxes eventually leads citizens to prefer abandonment of the system over its burden.

(ii) Manufacturing More Princes Than Thrones: Overproducing elites causes fierce internal civil conflict as rejected insiders mobilize aggrieved populations.

(iii) Trading the Deed for the Argument: In the Age of Intellect, debate replaces action, childlessness spikes, and entertainment/comfort replace long-term creation. NATO - No Action Talk Only.

(iv) Praying for a Caesar: Exhausted by endless political debate, the public voluntarily forfeits freedom to a strongman ("Caesarism") who promises to simplify life and make the machinery stop mattering.  

As we shall see in the following paragraphs, the fall of the Western Civilization have a very simple reason but very deep roots, with manifestations in most nations and economic sectors. This occurs when “intelligence succumbs to ideology—groupthink.” (Fig. 4)

 There are four observations that tie this behavior together:

(i) Bonhoeffer’s Theory of Stupidity — The German theologian and philosopher Dietrich Bonhoeffer famously wrote about this while imprisoned by the Nazis. He argued that stupidity is a moral defect rather than an intellectual one.

* The Core Idea: An intelligent person can be made stupid if they are overwhelmed by a powerful external ideology (like a political or religious movement).

* How it Works: The ideology essentially takes over the person's independent consciousness. They become a tool of the movement. When you try to reason with them, you aren't speaking to the person; you are speaking to their slogans and dogmas.

(ii) Groupthink — Coined by research psychologist Irving Janis in 1972, Groupthink occurs when a group of well-intentioned, highly intelligent people make irrational or dysfunctional decisions driven by the urge to conform.

* The Core Idea: The desire for harmony, loyalty, and consensus within the "in-group" overrides any realistic appraisal of alternative courses of action.

* How it Works: Intelligent individuals actively suppress their own doubts, censor their peers' dissenting opinions, and isolate themselves from outside perspectives to maintain group cohesion.

(iii) Motivated Numeracy and Identity-Protective Cognition —  Modern psychological research, notably by Yale professor Dan Kahan, shows that intelligence often makes people better at rationalizing bad ideas rather than helping them find objective truth.

* The Core Idea: When an issue becomes tied to a person's cultural or political identity (their "creed"), their primary goal shifts from "being accurate" to "protecting my status in the tribe."

* How it Works: Highly educated individuals use their superior cognitive skills not to evaluate facts objectively, but to construct elaborate justifications and arguments to defend their group's ideology. In short: smart people are better at fooling themselves.

(v)  Ideological Subversion and "Useful Idiots" — A concept often attributed to political history (and detailed by KGB defector Yuri Bezmenov), this describes how highly educated intellectuals—often referred to as the intelligentsia—can be manipulated into supporting destructive ideologies.

* The Core Idea: People who are highly educated can become so enamored with abstract, utopian theories that they lose touch with common sense and practical reality.

* How it Works: Because they are heavily invested in the "moral superiority" of the creed, they willfully ignore the negative real-world consequences of that creed.

2. Merz met Takaichi - German Chancellor Friedrich Merz met with Japanese Prime Minister Sanae Takaichi in Tokyo on October 28, 2026, marking Merz’s first official visit to Japan since taking office. Both leaders released joint declarations to combat economic coercion, safeguard critical minerals, and diversify supply chains for semiconductors, batteries, electric vehicles, industrial AI, robotics, and pharmaceuticals. The two WWII Axis Powers have been left far behind in the race of the Industrial Revolution 3.0 and 4.0 have nowhere to turn but onto each other. But what a mistake—joining hands of losers with similar redundant abilities would hardly gain any advantage in areas of their incompetence. (Fig. 5)  

3. AI Groupthink - Cracks are now visible in the AGI (Artificial General Intelligence) Tower of Babel as the financial market finally realized that artificial intelligence has delivered "zero" measurable financial payoff to mainstream corporate America outside of a small group of major technology companies (the "Magnificent Seven"). While capital expenditure on AI infrastructure continues to surge at the top, the broader economy has yet to see corresponding revenue growth or margin expansion, and AI funding has suddenly stopped. Since my alert on August 15 and subsequent updates thereafter, the performance of AI platforms and related semiconductor stocks has been disappointing. (Fig. 6)

Microsoft (+5.6%); Meta (+3.50%); TSMC (-4.45%); Nasdaq (-5.30%); Amazon (-8.30%); Micron (-8.52%); Nvidia (-8.85%); SK Hynix(-9.95%); ASML(-10.56%); Gold(-11.5%); Oracle(-12.85%), Philadelphia Semiconductor Index (-13.2%); Google (-18.62%); Silver (-24.23%) and Coreweave (-47.59%).

4. TINA USD Groupthink - Bloomberg published an exclusive report detailing how countries and regions most aligned with the United States significantly cut back on their U.S. Treasury purchases and dollar-related reserve accumulation. In the first eight months of 2026, countries and regions with the closest ties to the United States made net purchases of $174.3 billion in U.S. Treasuries, excluding short-term Treasury bills, down more than 60% year over year and the lowest level for the same period since 2021. Japan, the largest foreign holder of U.S. Treasuries made net purchases of just $389 million in the first eight months, down 99% from the same period last year. (Fig. 7).

According to comments made by Masahiko Loo, senior fixed income strategist at State Street Investment Management, to Bloomberg, the U.S. Treasury market has not lost foreign buyers, but rather “the buyers who would automatically buy.” He noted, “An increasingly unpredictable United States makes it increasingly difficult for investors to find a reasonable basis for large-scale, structural overweight positions in U.S. Treasuries and for automatically channeling capital back into the U.S. Treasury market.”

Meanwhile, private investors such as hedge funds and banks now hold about 70% of U.S. federal government debt, close to the highest level since 1990. Private investors are more sensitive to price changes, and financial markets could react more sharply if concerns arise about U.S. monetary policy, the economic outlook, or the widening fiscal deficit.

Pardon me for repeating my parroting of synthetic US bond demand through interest rate and FX swaps. USD is still useful as a unit of account, but it is increasingly losing its usefulness as a unit of exchange and is no longer treasured as a store of value. My thesis that such derivatives driven synthetic bond demand is unsustainable and will break in October 2026. W has manifested in almost all asset class sectors in the financial market.(Fig. 8)

The World Gold Council projects full-year 2026 central bank purchases to land around 850 tonnes, closely matching 2025's total of 863 tonnes as emerging markets and reserve diversification continue to support long-term demand.

5. CIA Playbook for USD Stabilization by Chaos in Other Economies -  There are multiple reports and official investigations regarding agent provocateurs, masked agitators, and foreign interference during the recent autumn 2026 riots and protests in Europe (particularly in France and Italy) (Fig. 9)

Italian Government Investigations: Italian officials launched inquiries into whether external or foreign actors helped fuel violent cost-of-living protests in Milan and other cities. Italian Defense Minister Guido Crosetto described aspects of the unrest as part of a potential "hybrid war", prompting Prime Minister Giorgia Meloni's government to seek briefings on possible foreign provocateurs.

Official Stance on Foreign Spark: While European authorities and the European Commission acknowledge widespread foreign manipulation of information and digital amplification after the fact, officials have noted a current lack of conclusive evidence proving that foreign powers directly engineered or sparked the physical riots on the ground.

For those readers from Hong Kong, we are all too familiar with such CIA tactics in the black mob riots in 2019. (Fig. 10).

Dear readers, history need not repeat exactly, but history shows that mankind repeats the same mistakes and does not learn from history. I am sorry if you all get too tired of my parroting, but since I rarely get any feedback from you guys, that you are prepared, I will continue until this ill wind is behind us. Be safe and stay well.

Ecclesiastes 3:1  To everything there is a season, A time for every purpose under heaven: 2  A time to be born, And a time to die; A time to plant, And a time to pluck what is planted; 3  A time to kill, And a time to heal; A time to break down, And a time to build up; 4  A time to weep, And a time to laugh; A time to mourn, And a time to dance; 5  A time to cast away stones, And a time to gather stones; A time to embrace, And a time to refrain from embracing;6  A time to gain, And a time to lose; A time to keep, And a time to throw away; 7  A time to tear, And a time to sew; A time to keep silence, And a time to speak; 8  A time to love, And a time to hate; A time of war, And a time of peace. 

Fish Rots from the Head Down:

The week ended on October 16, 2026, interesting news items to look at for the past fortnight are:

Fish Rots from the Head Down: It is mid October and the economic impact of the Zionist Shiite War are showing up everywhere especially in countries with politicians who value their own throne more than the well-being of the country they lead. It is at this time that we need to discern the white wash false signs and politically designed narratives from the complete underlying facts. (Fig, 1)

Trump/Putin Diesel Deal - on October 9, 2026, the U.S. Department of the Treasury issued a temporary license suspending sanctions on Russian diesel deliveries until April 2027. In exchange, Russia is pledged to supply several million tons of diesel to U.S. and global markets to help combat soaring domestic fuel prices ahead of the November 3 midterm elections. What was not announced was , Ukraine;s access to Starlink and Starshield satellite internet communications was abruptly restricted immediately following the announcement of the Trump/Putin diesel deal and with it Ukraine’s drone strikes against Russia. (Fig. 2).

Little Financial Appetite for Super Intelligence -  The Australian data centre developer Firmus rocketed in private market valuations from about $1.85 billion in late 2025 to roughly $15 billion by August 2026. The valuation was achieved by a private placement to NVIDIA and Blackstone. In late September, Underwriters (Morgan Stanley, BOA, JP Morgan and Morgans Financial) distributed aggressive pre-marketing reports valuaing the company up to US$58B -US$70.4B. On October 1, the IPO was launched at $43.7B ($11.0 per share). By October 8, cold response from potential investors triggered a repricing to $8.25 per share (25% discount) and went as low as $5.50 but even with that, the IPO was not successful and on October 10, investors completely walked away. (Fig. 3).

The Firmus debacle showed institutions no longer buy the over-the-top hype of Super Intelligence. This news is a shock-wave that reverberate all around the globe resulting in a bloodbath of AI and semiconductor stocks. (Fig. 4).

Leading the pack is SK Hynix of South Korea (-47.7%), Corewave, a US Data Centre developer (-29.87%), Micron Tech, US memory chip manufacturer (-18.47%), TSMC (-9.03%), Oracle (-6.87%), Nvidia (-6.67%) and by comparison Silver (-5.61%) and Gold (+0.2%).

Since the end of September 2026, credit default swaps (CDS) on AI-related companies have widened sharply, hitting record levels, with particularly severe stress on data center operators reliant on debt financing. Coreweave CDS spread breached 1,100 basis points, Oracle to 300, Softbank 424 basis points, Nvidia 90 and Meta 105 basis points.

In our last Blog, we reported that the 2026 first half earnings of Google and Alphabet and other AI related stocks were significantly boosted by unrealized gains on private valuations of AI related investments. The same logic that catapulted the Mag 7 earnings upwards would weigh down their earnings to crash.  

Like the 2008 sub-prime fiasco, when the AI dominoes finally fall, it will cause a cascading effect first on the $25 trillion combined value of the US AI and semiconductor stocks, then the $2.5 trillion Private Equity and Credit market, the Tsunami will travel to hedge funds, ETF, insurance, pension and endowment funds, to commercial banks, stock exchanges and central clearing houses and ultimately central banks and national treasuries. The final act is to default or print and you all know they have only one option - a humongous print similar to the Wiemar Republic. (Fig. 5).

Dear readers, I may be early in my alarm but that is what alarms are designed for.

MOAB (Mother of All Bombs) and the new Mid East Geo-political Realities -  CNN reported that US military had deawn up contingency plans to use MOAB to strike Iranian energy facilities and nuclear sites. The MOAB is a large-area blast weapon and not a deep-penetration “bunker buster” and unlikely to have reaeffect in destroying Iranian nuclear facilities which typically are deeply buried under the solid granite Pickaxe Mountain. Sources described it as more of a “psychological warfare” tool. Independent military analysts ascribed the use of MOAB is designed as a cover for Trump to exit from the Mid East war theatre similar to the theatrics of bunker buster bombing in 2025 which accompanied a broadcast of victory and mission accomplished. (Fig. 6).

In a previous blog titled “Preparation Precedes Blessings”, we have identified a possibility of 10 regional power blocs to emerge after a fall of the Anglo American Zionist Alpha, we are one step closer to that realization. (Fig. 7)

Finally, Neil Ferguson, historian and co-author of the book “The Fourth Turning” identify the current state of politics is in favour of strongman and authoritarian leadership, interstate conflict, technological advances that made legacy defence systems obsolete and AI advancement that usurp traditional institutional powers. (Fig. 8).

My friends, be alert and expect the unexpected to happen.

Revelation 13:1  Then I stood on the sand of the sea. And I saw a beast rising up out of the sea, having seven heads and ten horns, and on his horns ten crowns, and on his heads a blasphemous name. 2  Now the beast which I saw was like a leopard, his feet were like the feet of a bear, and his mouth like the mouth of a lion. The dragon gave him his power, his throne, and great authority. 3  And I saw one of his heads as if it had been mortally wounded, and his deadly wound was healed. And all the world marveled and followed the beast. 4  So they worshiped the dragon who gave authority to the beast; and they worshiped the beast, saying, "Who is like the beast? Who is able to make war with him?" 5  And he was given a mouth speaking great things and blasphemies, and he was given authority to continue for forty-two months. 6  Then he opened his mouth in blasphemy against God, to blaspheme His name, His tabernacle, and those who dwell in heaven. 7  It was granted to him to make war with the saints and to overcome them. And authority was given him over every tribe, tongue, and nation. 8  All who dwell on the earth will worship him, whose names have not been written in the Book of Life of the Lamb slain from the foundation of the world. 9  If anyone has an ear, let him hear. 10  He who leads into captivity shall go into captivity; he who kills with the sword must be killed with the sword. Here is the patience and the faith of the saints.