Topline:
Tech companies are pouring billions into AI chips and data centers.
Why it matters: Increasingly, they are relying on debt and risky tactics.
Why now: Financial analysts are worried there's a bubble that will soon pop.
Topline:
Tech companies are pouring billions into AI chips and data centers.
Why it matters: Increasingly, they are relying on debt and risky tactics.
Why now: Financial analysts are worried there's a bubble that will soon pop.
Perhaps nobody embodies artificial intelligence mania quite like Jensen Huang, the chief executive of chip behemoth Nvidia, which has seen its value spike 300% in the last two years.
A frothy time for Huang, to be sure, which makes it all the more understandable why his first statement to investors on a recent earnings call was an attempt to deflate bubble fears.
"There's been a lot of talk about an AI bubble," he told shareholders. "From our vantage point, we see something very different."
Take in the AI bubble discourse and something becomes clear: Those who have the most to gain from artificial intelligence spending never slowing are proclaiming that critics who fret about an over-hyped investment frenzy have it all wrong.
"I don't think this is the beginning of a bust cycle," White House AI czar and venture capitalist David Sacks said on his podcast All-In. "I think that we're in a boom. We're in an investment super-cycle."
"The idea that we're going to have a demand problem five years from now, to me, seems quite absurd," said prominent Silicon Valley investor Ben Horowitz, adding: "if you look at demand and supply and what's going on and multiples against growth, it doesn't look like a bubble at all to me."
Appearing on CNBC, JPMorgan Chase executive Mary Callahan Erdoes said calling the amount of money rushing into AI right now a bubble is "a crazy concept," declaring that "we are on the precipice of a major, major revolution in a way that companies operate."
Yet a look under the hood of what's really going on right now in the AI industry is enough to deliver serious doubt, said Paul Kedrosky, a venture capitalist who is now a research fellow at MIT's Institute for the Digital Economy.
He said there is a startling amount of capital pouring into a "revolution" that remains mostly speculative.
"The technology is very useful, but the pace at which it is improving has more or less ground to a halt," Kedrosky said. "So the notion that the revolution continues with the same drum beat playing for the next five years is sadly mistaken."
The gusher of money is rushing in at a rate that is stunning to financial experts.
Take OpenAI, the ChatGPT maker that set off the AI race in late 2022. Its CEO Sam Altman has said the company is making $20 billion in revenue a year, and it plans to spend $1.4 trillion on data centers over the next eight years. That growth, of course, would rely on ever-ballooning sales from more and more people and businesses purchasing its AI services.
There is reason to be skeptical. A growing body of research indicates most firms are not seeing chatbots affect their bottom lines, and just 3% of people pay for AI, according to one analysis.
"These models are being hyped up, and we're investing more than we should," said Daron Acemoglu, an economist at MIT, who was awarded the 2024 Nobel Memorial Prize in Economic Sciences.
"I have no doubt that there will be AI technologies that will come out in the next ten years that will add real value and add to productivity, but much of what we hear from the industry now is exaggeration," he said.
Nonetheless, Amazon, Google, Meta and Microsoft are set to collectively sink around $400 billion on AI this year, mostly for funding data centers. Some of the companies are set to devote about 50% of their current cash flow to data center construction.
Or to put it another way: every iPhone user on earth would have to pay more than $250 to pay for that amount of spending. "That's not going to happen," Kedrosky said.
To avoid burning up too much of its cash on hand, big Silicon Valley companies, like Meta and Oracle, are tapping private equity and debt to finance the industry's data center building spree.
One assessment, from Goldman Sachs analysts, found that hyperscaler companies — tech firms that have massive cloud and computing capacities — have taken on $121 billion in debt over the past year, a more than 300% uptick from the industry's typical debt load.
Analyst Gil Luria of the D.A. Davidson investment firm, who has been tracking Big Tech's data center boom, said some of the financial maneuvers Silicon Valley is making are structured to keep the appearance of debt off of balance sheets, using what's known as "special purpose vehicles."
The tech firm makes an investment in the data center, outside investors put up most of the cash, then the special purpose vehicle borrows money to buy the chips that are inside the data centers. The tech company gets the benefit of the increased computing capacity but it doesn't weigh down the company's balance sheet with debt.
For example, a special purpose vehicle was recently funded by Wall Street firm Blue Owl Capital and Meta for a data center in Louisiana.
The design of the deal is complicated but it goes something like this: Blue Owl took out a loan for $27 billion for the data center. That debt is backed up by Meta's payments for leasing the facility. Meta essentially has a mortgage on the data center. Meta owns 20% of the entity but gets all of the computing power the data center generates. Because of the financial structure of the deal, the $27 billion loan never shows up on Meta's balance sheet. If the AI bubble bursts and the data center goes dark, Meta will be on the hook to make a multi-billion-dollar payment to Blue Owl for the value of the data center.
Such financial arrangements, according to Luria, have something of a checkered past.
"The term special purpose vehicle came to consciousness about 25 years ago with a little company called Enron," said Luria, referring to the energy company that collapsed in 2001. "What's different now is companies are not hiding it. But having said that, it's not something we should be leaning on to build our future."
Silicon Valley is taking on all this new debt with the assumption that massive new revenues from AI will cover the tab. But again, there is reason for doubt.
Morgan Stanley analysts estimate that Big Tech companies will dish out about $3 trillion on AI infrastructure through 2028, with their own cash flows covering only half of that.
"If the market for artificial intelligence were even to steady in its growth, pretty quickly we will have over-built capacity, and the debt will be worthless, and the financial institutions will lose money," Luria said.
Twenty-five years ago, the original dot-com bubble burst after, among other factors, debt financing built out fiber-optic cables for a future that had not yet arrived, said Luria, a lesson, it appears, tech companies are not worried about repeating.
"If we get to the point after spending hundreds of billions of dollars on data centers that we don't need a few years from now, then we're talking about another financial crisis," he said.
Another aspect of the over-heated AI landscape that is raising eyebrows is the circular nature of investments.
Take a recent $100 billion deal between Nvidia and OpenAI.
Nvidia will pump that amount into OpenAI to bankroll data centers. OpenAI will then fill those facilities with Nvidia's chips. Some analysts say this structure, where Nvidia is essentially subsidizing one of its biggest customers, artificially inflates actual demand for AI.
"The idea is I'm Nvidia and I want OpenAI to buy more of my chips, so I give them money to do it," Kedrosky said. "It's fairly common at a small scale, but it's unusual to see it in the tens and hundreds of billions of dollars," noting that the last time it was prevalent was during the dot-com bubble.
Lesser-known companies are getting in on the action, too.
CoreWeave, once a crypto mining startup, pivoted to data center building to ride the AI boom. Major AI companies are turning to CoreWeave to train and run their AI models.
OpenAI has entered deals with CoreWeave worth tens of billions of dollars in which CoreWeave's chip capacity in data centers is rented out to OpenAI in exchange for stock in CoreWeave, and OpenAI, in turn, could use that stock to pay its CoreWeave renting fees.
Nvidia, meanwhile, which also owns part of CoreWeave, has a deal guaranteeing that Nvidia will gobble up any unused data center capacity through 2032.
"The danger," said the MIT economist Acemoglu,"is that these kinds of deals eventually reveal a house of cards."
Some influential investors are showing signs of bubble jitters.
Tech billionaire Peter Thiel sold off his entire stake in Nvidia worth around $100 million earlier this month. That came after SoftBank sold a nearly $6 billion stake in Nvidia.
And in recent weeks, AI bubble pessimists have rallied around Michael Burry, the hedge-fund investor who made hundreds of millions of dollars betting against the housing market in 2008. He was the subject of the 2015 film The Big Short. Since then, though, he's had a mixed reputation for market predictions, having warned about imminent collapses that never came to pass.
For what it's worth, Burry is now betting against Nvidia, accusing the AI industry of hiding behind a bunch of fancy accounting tricks. He's homed in the circular deals between companies.
"True end demand is ridiculously small. Almost all customers are funded by their dealers," Burry wrote on X. He later wrote: "OpenAI is the linchpin here. Can anyone name their auditor?"
As tech companies sink billions into data centers, some executives themselves are freely admitting there looks to be some over exuberance.
OpenAI CEO Sam Altman told reporters in August: "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes."
And Google chief executive Sundar Pichai told the BBC recently that "there are elements of irrationality" in the AI market right now.
Asked how Google would fare if the bubble burst, Pichai responded: "I think no company is going to be immune, including us."
Copyright 2025 NPR
Los Angeles officials are considering a pair of Airbnb-backed proposals that would temporarily loosen city regulations on short-term rentals and allow the company to pre-pay a portion of the lodging taxes it collects from tourists.
Both plans appeared in Mayor Karen Bass’ budget proposal for the next fiscal year, which starts in July. They were initially suggested by Airbnb, according to the company.
Bass’ budget proposal instructs the city’s Planning Department to develop a limited vacation rental program that would sunset by Dec. 31, 2028.
Pre-paying lodging tax: The second proposal would involve Airbnb paying some portion of the transient occupancy tax it collects from tourists to the city of Los Angeles ahead of time to assist with the city’s budget troubles.
Bass' budget instructs city staff to report back with recommendations “to allow the pre-payment of Transient Occupancy Tax in advance of the 2028 Olympics from any payer that wishes to assist the City in accelerating critical infrastructure projects.”
That could generate tens of millions of dollars more for the city per year, according Airbnb.
Los Angeles officials are considering a pair of Airbnb-backed proposals that would temporarily loosen city regulations on short-term rentals and allow the company to pre-pay a portion of the lodging taxes it collects from tourists.
If approved by the City Council, the first proposal would allow Airbnb hosts to rent second homes and investment properties on the platform through 2028 — something the home-sharing giant has long sought, but the city of L.A. has prohibited since 2018.
The second proposal would involve Airbnb paying some portion of the transient occupancy tax it collects from tourists to the city of Los Angeles ahead of time to assist with the city’s budget troubles. That could generate tens of millions of dollars more for the city per year, according to the company.
"Airbnb is a committed partner to Los Angeles and its long-term prosperity with not just words, but with action,” said Justin Wesson, Airbnb’s senior public policy manager in California. “That’s why we have offered to provide tax revenue we already collect on behalf of hosts up front to help fund essential city programs millions of Angelenos rely on."
Both plans appeared in Mayor Karen Bass’ budget proposal for the next fiscal year, which starts in July, and were first reported by L.A. Material. Both were initially suggested by Airbnb, according to the company.
Bass’ budget proposal instructs the city’s Planning Department to develop a limited vacation rental program that would sunset by Dec. 31, 2028.
It also instructs city staff to report back with recommendations “to allow the pre-payment of transient occupancy tax in advance of the 2028 Olympics from any payer that wishes to assist the City in accelerating critical infrastructure projects.”
Councilmember Monica Rodriguez, who opposes expanding short-term rentals, told LAist she has concerns about the prepayment plan.
"I don’t know anyone in the country running to prepay their taxes, especially any corporations, and it begs the question as to why,” Rodriguez said.
Airbnb has discussed this pre-payment concept with city officials, but has not settled on specific terms, a company spokesperson confirmed to LAist.
The company told LAist it would work with city officials to come up with the amounts and timelines for any potential prepayment after the City Council approves the mayor’s budget.
Bass’ office did not respond Thursday to questions about the proposal.
In the current budget year, the city will collect about $297 million in transient occupancy taxes, including $34.5 million from short-term rentals and $262.9 million from hotels, according to the L.A. city controller’s revenue forecast.
The Hotel Association of Los Angeles told LAist that hotels, the main driver of bed-tax revenues, have not been part of any conversations about possible pre-payment.
“City leaders have not engaged hotels on the concept of pre-paying transient occupancy taxes in advance of the 2028 Olympics,” Jackie Filla, the association’s president and CEO, said in a statement. “We learned of this issue for the first time while reviewing the proposed budget.”
The Mayor’s Office first briefed members of the City Council’s Budget and Finance Committee shortly before the Monday release of Bass’ proposed budget, according to one member’s office.
According to the mayor’s budget proposal, the prepaid tax revenue would be used for curb and sidewalk repairs, park maintenance, street cleanliness and tree trimming.
Airbnb entered into an agreement with the city of L.A. in August 2016 allowing the company to collect and pay the transient occupancy tax on behalf of Airbnb hosts. The company said it has collected and paid more than $370 million in lodging tax to the city of Los Angeles between 2016 and the end of last year, for an average of about $39 million annually.
Before L.A.’s 2018 law restricting Airbnbs, there were nearly 29,000 estimated active short-term rental listings in the city of L.A., according to the city’s Planning Department. L.A.’s transient occupancy tax revenue totaled nearly $319 million in the 2018 budget year, according to the city administrative officer. That total includes tax remitted by hotels and it’s unclear how much was generated from short-term rentals specifically.
Last budget year, there were fewer than 5,000 homes officially listed on short-term rental platforms, according to the city. L.A. collected $305.8 million in transient occupancy tax. About $272 million of that came from hotels. The other roughly $33 million came from short-term rentals, according to the city controller.
Bass’ budget proposal projects $313.5 million in transient occupancy tax in 2026-2027.
Airbnb has long sought to change L.A.’s short-term rental rules to allow more homes on the platform.
Last year, Airbnb launched a public campaign for its "Vacation Rental Revenue Plan.” The company argues that increasing L.A.’s short-term rentals will generate more tax revenue from tourists and expand housing options during the Olympics.
L.A.’s current short-term rental regulations allow homeowners to list only their primary residences on platforms like Airbnb. It also prohibits housing units protected by the city’s rent stabilization ordinance from being listed.
But existing Airbnb laws are rarely enforced. There were 7,500 properties illegally operating as short-term rentals in Los Angeles, according to the city’s Housing Department’s 2024 estimates. Since 2021, L.A. has issued an average of 125 home-sharing citations per year across all enforcement departments, according to city planning records.
Airbnb estimates that lifting restrictions on second homes could generate more than $100 million annually for the city in additional revenue from transient occupancy tax and other tourist spending. The company did not provide a further breakdown of those projections or indicate the exact number of new listings it expects would follow.
There are currently about 5,500 units already operating on home-sharing platforms under the existing rules and thousands more operating illegally, according to city officials.
On April 2, the city of L.A.’s Planning Department recommended in a report that the city reject the Airbnb proposal to allow second homes, finding it was unlikely to generate much revenue and likely to remove long-term housing from the market.
On April 15, the department released another report, reversing its earlier position. It clarified that the previous report had only only analyzed a permanent program but that a temporary program tied to the Olympics was worth considering.
Councilmember Bob Blumenfield, part of the Budget and Finance Committee, said Airbnb has been talking to members about vacation rentals for years. He said he opposes the company’s desired changes and wants to see more enforcement of illegal Airbnbs.
“I didn't support vacation rentals when it was before us years ago because I feared it would take long-term housing units off the market,” Blumenfield said. “I'm still concerned about it. I still haven't seen a proposal that I would support.”
Councilmember Tim McOsker, also on the budget committee, did not say whether he would support the Airbnb-backed proposals.
A spokesperson from his office said in a statement that Osker “will evaluate the entirety of the proposal, including the pre-payment mechanism, within the budget hearings process before taking a position.”
Councilmember Nithya Raman, who is running for L.A. mayor against Bass, said the city needs to properly consider the impact of the proposals from Airbnb.
“The idea that the City would entertain speculative tax prepayments tied to expanding short-term rentals, while we are in an acute housing affordability and availability crisis, needs to be properly vetted to consider its full ramifications,” Raman said in a statement.
Airbnb’s political opponents tied to the hotel industry, including hotel workers’ union UNITE HERE Local 11, have consistently fought against efforts to expand Airbnbs. Now they’re also crying foul on the company’s pre-payment plan.
“ This is just a ruse to to build a larger short-term market, which means less housing for Angelenos in our city,” said Kurt Petersen, co-president of UNITE HERE Local 11.
Noah Suarez-Sikes, an organizer with Better Neighbors L.A. — which advocates for stronger limits on short-term rentals — said even if the change is temporary, renters will be permanently displaced.
“ I would hope that council would see that this is a Trojan horse and take it out before it starts harming working class people,” he said.
Airbnb is the third biggest spender in L.A. city elections so far this year, after the Los Angeles Police Protective League, which represents officers, and UNITE HERE Local 11.
A committee funded entirely by Airbnb spent nearly $300,000 in support of Jose Ugarte, a former aide to Councilmember Curren Price who is now one of six candidates running to replace him in District 9.
The committee paid $298,832.00 to a company called Street Level Strategy LLC for “canvassing, consulting, doorhangers, data, and office supplies,” according to records filed with the city.
"Across the country and at all levels of government, we back causes and candidates that champion home sharing and tourism and Los Angeles is a top focus for us," Justin Wesson of Airbnb told LAist.
Meanwhile, a committee sponsored by UNITE HERE Local 11 has raised $515,000 and spent more than $440,000 in independent expenditures opposing District 11 Councilmember Traci Park and supporting her challenger, civil rights attorney Faizah Malik.
“ We want to support candidates who want to raise wages so that people can live in Los Angeles and lower rents so that people can afford to live in Los Angeles,” said UNITE HERE 11 co-president Kurt Peterson.
The City Council will begin budget hearings Friday. The panel is expected to hold its first vote on the budget May 21.
Topline:
Meta will lay off 10% of its staff in May. The layoffs will take place on May 20 and affect some 8,000 workers. Meta will also not hire for 6,000 open roles that it had intended to fill.
About the layoffs: In a memo, Meta's chief people officer Janelle Gale wrote, "We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making. This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here." In a separate round of layoffs this month, the company announced that it was laying off some 700 people as part of its efforts in "right-sizing" its investment in Reality Labs, the division that runs the company's Metaverse products.
Facing a string of costly legal challenges: The company lost two pivotal court cases earlier this year: a New Mexico jury found that Meta failed to protect young users from child sexual exploitation. Penalties in that case could reach $375 million. Meanwhile, a jury in Los Angeles found the company — along with Google — liable for the mental health problems experienced by a woman who used social media as a small child, awarding her $6 million. Meta has said it will appeal both lawsuits.
Meta will lay off 10% of its staff in May, according to an internal memo which was published by Bloomberg. A Meta spokesperson confirmed the report's accuracy to NPR.
The layoffs will take place on May 20 and affect some 8,000 workers. Meta will also not hire for 6,000 open roles that it had intended to fill.
In the memo, Meta's chief people officer Janelle Gale wrote, "We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making. This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here."
Calling it "unwelcome news" that "puts everyone in an uneasy state," Gale wrote, confirming the layoffs to employees now "is the best path forward, given the circumstances."
Meta and other big players in artificial intelligence have been spending vast amounts of money to build data centers and try to win the AI race — one in which Meta lags behind competitors such as OpenAI, Anthropic and Google.
In January, Meta forecast record capital expenditures this year of up to $135 billion — almost double what it spent last year.
The pivot to AI comes at a time when Meta seems to be backing away from its previous focus on its virtual reality Metaverse products. The Metaverse was once key to CEO Mark Zuckerberg's vision for the company's future — so fundamental that in 2021, he changed the name of the company from Facebook to Meta.
In a separate round of layoffs this month, the company announced that it was laying off some 700 people as part of its efforts in "right-sizing" its investment in Reality Labs, the division that runs the company's Metaverse products.
Meta is also facing a string of costly legal challenges. The company lost two pivotal court cases earlier this year: a New Mexico jury found that Meta failed to protect young users from child sexual exploitation. Penalties in that case could reach $375 million.
Meanwhile, a jury in Los Angeles found the company — along with Google — liable for the mental health problems experienced by a woman who used social media as a small child, awarding her $6 million.
In the Los Angeles case, the woman's lawyers argued that Meta's products were designed to be addictive to kids.
Meta has said it will appeal both lawsuits.
The company faces similar lawsuits, including one brought by several school districts against Meta and several other social media companies, which will be heard in Oakland, California this year.
Copyright 2026 NPR
Topline:
Hokkaido Fried Chicken opened quietly in January out of a ghost kitchen on Olympic Boulevard on the outskirts of Koreatown, and it's already making a strong case for the best fried chicken sandwich in the city.
Why it matters: In a town saturated with Korean fried chicken and American fast-casual sandwiches, HFC is doing something genuinely different — bringing Hokkaido's zangi tradition, a deeply marinated and distinctly craggy style of Japanese fried chicken, to a fast-casual format that you’d be hard-pressed to find anywhere else in L.A.
Why now: The concept is less than four months old, the word isn't fully out yet, and the man behind it — Ronuk Patel, an Indian American chef-owner who came up through cannabis farming in Humboldt County and a ramen bar in Arcata — has a second concept, Hokkaido Soup Curry, already running out of the same kitchen with more on the way.
The backstory: Patel first visited Hokkaido on snowboarding trips and fell in love with the local food culture. On his first trip to Sapporo over a decade ago, he met Japanese chef Gory, whose family zangi recipe eventually became the foundation of HFC. In 2024, Patel sponsored Gory's visa, brought him to Arcata to help launch Susukino Ramen Bar, and the sandwich evolved from there.
What's next: Hokkaido Fried Chicken is available for delivery via major apps. Find them on Instagram at @hokkaido_fried_chicken.
The first thing you notice when you unwrap the fried chicken sandwich from Hokkaido Fried Chicken is the craggy crust, almost geological in its texture — the kind of fry that makes you want to reconsider every other fried chicken sandwich you've ever eaten.
The chicken itself — shattering on the outside, improbably juicy within — holds its own against everything surrounding it. With the miso vinaigrette slaw, the pickled cucumbers, the chili truffle shoyu sauce, it’s a revelation — and for me, the best fried chicken sandwich I’ve ever eaten in L.A., hands down.
Hokkaido Fried Chicken, which is online-only, has been running since January out of an unassuming ghost kitchen on the edge of Koreatown. It’s the brainchild of Ronuk Patel, an Indian American who grew up outside Chicago, fell in love with snowboarding, and relocated to Arcata, a Northern California town about three hours from the Oregon border.
There, he built a career as a cannabis farmer — and began making regular snowboarding pilgrimages to Hokkaido, Japan's northernmost island, chasing powder and, eventually, some of the most interesting food he'd ever eaten. It was on that first trip to Sapporo, over a decade ago, that he met Gory, a Japanese chef who would become a close friend and, eventually, his collaborator.
In 2024, Patel sponsored Gory's visa and brought him to Arcata to help launch Susukino Ramen Bar — named after the Sapporo neighborhood where they first met. It was there, with Gory's family zangi recipe on the menu as an appetizer, that the seed of Hokkaido Fried Chicken was planted.
Most Angelenos with a passing familiarity with Japanese cuisine know karaage — the lightly battered, juicy fried chicken that has become a fixture on Japanese menus across the city. Zangi is Hokkaido's answer to that tradition, and it plays in a different register entirely. Where karaage tends toward a lighter touch — a brief marinade, a delicate crust — zangi goes deeper. The marinade is heavier on soy and sake, more aggressive with garlic and ginger and almost always incorporates a fruit component that varies by chef.
Patel and Gory pushed it further still, applying a dry batter separately after marinating — rather than mixing everything together in the traditional wet batter method — for a crust that fries up dramatically craggier and crunchier. The result is chicken that is deeply seasoned all the way through and improbably juicy — both of which hit you immediately on first bite.
Bite into the sandwich ($10.99), and you immediately understand why it took four or five months to get here. Every detail is thought through. The miso slaw cuts the richness of the chicken without competing with it. The cucumbers, pickled in a brine riffed from Patel's own recipe, add brightness and snap. The chili truffle shoyu sauce, born from mixing his ramen shop's house chili with a white shoyu-truffle product he'd been experimenting with, ties it together with a depth that sneaks up on you.
Fried chicken sandwiches aren't all that's on the menu at HFC. Nuggets and tenders round out the chicken offerings, along with the fries, which are definitely worth ordering — particularly the loaded pork belly fries ($10), topped with chashu pork belly, spicy truffle aioli and green onions over crispy shoestring fries, and the furikake fries ($5), whose umami-rich seasoning makes them a natural companion to the chicken.
Patel has also launched a second concept out of the same ghost kitchen: Hokkaido Soup Curry, a Japanese dish that combines aromatic curry spices with a lighter, broth-based preparation rooted in the same Hokkaido culinary tradition that inspired HFC — and one that hints at the Japanese-Indian fusion menu Patel says he's only just beginning to develop.
For Patel, none of it feels calculated — and that, perhaps, is the point.
"It just happened really organically, naturally, just like us being in the kitchen, having a good time."
Topline:
On the last Friday of every month, Wilshire and Western transforms into a human-centered movement that proves LA is more than just its gridlock.
The backstory: The modern Critical Mass movement began in San Francisco in 1992 as a grassroots effort to reclaim the streets has since grown into a global movement, with Los Angeles now hosting one of its largest rides.
About the event: The ride takes place on the last Friday of every month on the corner of Western and Wilshire across from The Wiltern. Routes change monthly, turning each ride into a moving tour of the city. Some rides head west toward Marina del Rey, others east toward Mariachi Plaza, passing through neighborhoods that rarely feel connected outside of car travel.
Read on ... for more on Los Angeles Critical Mass.
This story first appeared on The LA Local.
When I first started, I went alone. I couldn’t convince any of my friends to commit to riding 20 miles on a bicycle on a Friday night through a city known for its car culture. It didn’t help that I told them the bike ride would start in Koreatown, among the most densely populated neighborhoods in the whole country.
I didn’t know what I was getting myself into.
What I discovered is that Los Angeles Critical Mass (LACM) is the largest community bicycle ride in the United States, drawing almost 4,000 riders each month, according to the group’s own records.
The modern Critical Mass movement began in San Francisco in 1992 as a grassroots effort to reclaim the streets has since grown into a global movement, with Los Angeles now hosting one of its largest rides.
LACM Vice President JoJo Valdez, told The LA Local that the event is ”a living example of what safer, more human-centered streets could look like” in the City of Angels.
The ride takes place on the last Friday of every month on the corner of Western and Wilshire across from The Wiltern. Routes change monthly, turning each ride into a moving tour of the city. Some rides head west toward Marina del Rey, others east toward Mariachi Plaza, passing through neighborhoods that rarely feel connected outside of car travel.
As the ride moves through different neighborhoods, it often brings energy — and customers — to local businesses along the route as riders stop for food, drinks and supplies throughout the evening.
Valdez said, “Cyclists, skaters and riders moving together make the demand for alternative transportation impossible to ignore.”
L.A. is the last place you’d expect a mass cycling movement to take hold. That’s probably why it did. In a city defined by gridlock, LACM offers something rare — movement through neighborhoods at a human pace.
I’ve experienced it firsthand.
For me, LACM became an alternative to the typical night out. Instead of bars or clubs, it became a way to decompress, stay active and explore the city differently.
Over time, I built connections that turned into a consistent group of six friends I now ride with each month. I’ve even brought my girlfriend along, and it’s become one of our favorite end-of-month traditions.
The LA chapter of Critical Mass is led by LACM President Lisa Lundie and Valdez, who both began as volunteers before stepping into leadership roles for the Los Angeles chapter. According to the organization, their focus includes accessibility, community and mental wellness accessibility, community and mental wellness — and those values show up throughout the ride itself.
Valdez said that what people see — the crowds and energy — is only part of the story. There is real coordination and planning to keep the ride safe and organized as it moves through the city.
“We look out for each other. We ride together. If you’re alone, you won’t stay that way for long,” he said.
Ride marshals help guide traffic, support newer riders and keep the group together, while a lead vehicle sets the pace and support riders follow behind to ensure no one is left behind. The result is a ride that may feel overwhelming at first, given the number of people, but quickly settles into a relaxed rhythm.
With everyone following the lead car and built-in stops to regroup, it becomes approachable for first-timers and more communal than a typical solo ride through Los Angeles.
As the ride unfolds, speakers carried by riders create a shifting soundtrack — hip-hop, EDM, reggae and Latin music blending with each neighborhood the group passes through, turning the streets into a moving reflection of L.A.’s culture.
Some rides carry deeper meaning, including moments of silence for cyclists lost to traffic accidents and ongoing calls for safer streets.
This month’s ride, taking place on April 24 at 7:00 p.m., will celebrate West Coast hip-hop legend DJ Battlecat, who will perform from the lead vehicle, transforming the ride into a rolling party on wheels.
The distance might sound intimidating, but the pace is manageable, with plenty of breaks and lots of potential new friends. Whether you come with a group or show up solo, Critical Mass offers a new way to experience Los Angeles one ride at a time.