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
Topline:
The Los Angeles Dodgers have acquired the biggest prize on the trade deadline market, getting two-time reigning AL Cy Young Award winner Tarik Skubal from the Detroit Tigers on Saturday night.
Why it matters: Skubal is the latest star to join the high-priced roster for the Dodgers that already has big-name players like Shohei Ohtani, Yoshinobu Yamamoto and Mookie Betts.
The Los Angeles Dodgers have acquired the biggest prize on the trade deadline market, getting two-time reigning AL Cy Young Award winner Tarik Skubal from the Detroit Tigers on Saturday night.
Skubal got the news during the Tigers’ 8-6 win over the Athletics and was emotional after the game as he prepared to leave the team that drafted him in 2018 and developed him into a star to join the two-time defending World Series champions.
“I’m excited to be a Dodger,” he said. “I’m excited to get down there and meet all those guys and chase three championships in a row. That’s hard to do, so I’m so excited to a part of that. But it’s a lot of different emotions. Definitely kind of a roller coaster a little bit.”
Skubal is the latest star to join the high-priced roster for the Dodgers that already has big-name players like Shohei Ohtani, Yoshinobu Yamamoto and Mookie Betts. If everyone is healthy, he could be part of a rotation with Ohtani, reigning World Series MVP Yamamoto, fellow two-time Cy Young Award winner Blake Snell and Tyler Glasnow. The Dodgers lead the majors with a 3.36 ERA from their starting pitchers and now add Skubal to the mix.
The Dodgers are in first place in the NL West and were already the favorites to become the first team to three-peat since the New York Yankees from 1998-2000 before adding Skubal. They began the season with a $323.3 million opening-day payroll for their 40-man roster and a $163.7 million tax for a $487.1 million total. They will pay Skubal about $9.5 million for the remainder of the season.
ESPN first reported the deal and said the Tigers would receive three minor league prospects in right-handers River Ryan and Brady Smith and outfielder Zyhir Hope.
Skubal is eligible for free agency after the World Series. He has a $32 million salary, a record total in arbitration, after the team offered $19 million, and is expected to sign a massive contract in the offseason.
The 29-year-old lefty said in July that it was his preference to finish the season with the Tigers and to compete for a World Series championship, which has eluded the franchise since 1984. Skubal took the loss in the decisive Game 5 of the division series against Cleveland in 2024 and then got a no-decision in a 15-inning loss to Seattle in Game 5 of the division series last year.
He said it was “very tough” to leave the Tigers having fallen short of the goal of winning a title.
“Ever since that ’24 Game 5, the failure that I experienced on the mound, I’ve used that as fuel to try and bring a World Series to the city of Detroit. I truly did,” he said. “That whole offseason I’ve never been more motivated and then go in and we lose Game 5 again. That failure kind of sparks some more motivation, just to dig deeper and see how good you can truly be. The goal was always to win a World Series for the city, for the organization that took a chance on me. It’s tough. I love all those guys in there. They’re some of my best friends.”
Detroit planned to contend again this season, bolstering the Skubal-led rotation by giving two-time All-Star pitcher Framber Valdez a $115 million, three-year contract in free agency and retaining three-time All-Star infielder Gleyber Torres with a $22 million deal.
The Tigers, though, got off to a rough start and are currently 2 1/2 games out of the last wild-card spot in the American League.
“It’s crazy. Going into the season, this isn’t what I planned on doing,” Skubal said. “But circumstances change, situations change, and I’m very appreciative of everything the Tigers have done for me.”
They bounced back in June and most of July to get into playoff contention with Skubal leading a rotation and three All-Stars in the lineup: rookie infielder Kevin McGonigle, catcher Dillon Dingler and outfielder Riley Greene.
With a chance to possibly persuade management to keep Skubal by improving its playoff positioning, Detroit lost ground by dropping four of its last five games at home, including Skubal’s last start that was made even more memorable by a late-inning collapse.
The Tigers led Baltimore 7-0 after six innings Wednesday and lost 10-9 in 12 innings. Skubal started the game, recorded his 1,000th career strikeout and was cheered at every opportunity by a crowd of 34,406.
“I’ve watched this guy rise to the top of the sport,” manager A.J. Hinch said. “He’s carried us a lot. I’ll forever be grateful that our paths crossed and the things that he did for this organization and for a couple of playoff teams. His presence, his work ethic, his example, his dominance. There’s so much to go through, it’s hard to capture in one quote or kind of one setting. But I’m very grateful that I was able to manage him for the time that I did.”
Skubal is 7-5 this season with a 2.79 ERA and 116 strikeouts in 96 2/3 innings. He is 61-42 with a 3.04 ERA over seven seasons, all in Detroit. In two postseasons, Skubal is 2-1 with a 2.04 ERA in six starts.
Skubal had a minimally invasive surgery on May 6 to remove a loose body from his pitching elbow and returned to pitch on June 13.
“The way the surgery went is exactly how it was supposed to go,” he said in July.
___
AP Sports Writer Larry Lage in Detroit contributed to this report
Topline:
Yoko Ono is having her first solo retrospective in Southern California, Yoko Ono: Music of the Mind, at The Broad.
About the show: As part of the survey of Ono's career, the museum is putting together a music tribute to Ono, featuring bands and musicians across genres and generations inspired by the artist.
Who is performing: The show is curated by Cibo Matto's Yuka Honda, the show on Saturday, Aug. 8, features Yo La Tengo, Wilco member Nels Cline, Satomi Matsuzaki from Deerhoof and more.
Yoko Ono is having her first solo retrospective in Southern California, Yoko Ono: Music of the Mind, at The Broad in downtown Los Angeles.
As part of the survey of her career, a special tribute concert, Yoko Only, featuring artists inspired by Ono, including Yo La Tengo, Tune-Yards and other musicians spanning genres and generations is scheduled for Saturday, Aug. 8.
The 93-year-old Ono has been a major avant-garde art figure since the 1960s. In one of her most famous works, long considered a cornerstone of feminist art, Ono sat on stage as audience members cut away pieces of her clothing.
In the late 1960s, Ono formed a band of sorts with John Lennon, originally as a conceptual art piece for a show. The Plastic Ono Band featured a rotating cast of members including some jaw-dropping names: Eric Clapton, George Harrison, Ringo Starr and Keith Moon.
On Dec. 11, 1970, both Ono and Lennon released their respective debut solo albums — John Lennon/Plastic Ono Ban and Yoko Ono/Plastic Ono Band.
Lennon's version — musically stripped down and lyrically raw — was lauded by critics at the time.
Ono's version — where vocal experimentation took center stage — was panned. Here's what music writer Marissa Lorusso said of the album for NPR in 2021.
"You hear Ono's voice wailing the song's title, Why, over and over — frenzied, intense and often nearly indistinguishable in tone from the guitar."
In the decades since its release, Yoko Ono/Plastic Ono Band has found new appreciation, particularly among musicians the likes of Kim Gordon and Yuka Honda.
Location: East West Bank Plaza at The Broad, 221 S. Grand Ave., Los Angeles
Date: Saturday, Aug. 8, 7:30 to 11 p.m.
The music of Yoko Ono and Plastic Ono Band will be performed by:
Honda, half of the 1990s New York duo Cibo Matto, is the tribute concert's guest curator.
"Everyone from Tune-Yards to Satomi Matsuzaki of Deerhoof to Sylvan Esso, Yo La Tengo, Rufus Wainwright — they all cite Yoko as a major influence on them as artists," said Ed Patuto, The Broad's director of audience engagement, who reached out to ask Honda to participate.
"Her music and her lyrics oftentimes have that poeticism. Yuka has done arrangements that really do this work justice," Patuto continued. "We're gonna introduce Angelenos to Yoko the musical composer."
Topline:
More than 260 city employees could be laid off and over 200 more vacant positions could be cut in departments ranging from fire and police to homeless services in order to close a $58 million budget gap the the city of Long Beach faces next year, according to a budget proposal from Long Beach City Manager Tom Modica.
Why it matters: Layoffs could claim 4% of the city’s nearly 6,000-person workforce, with additional cuts at libraries, parks and the city’s homeless services hub as Long Beach copes with rising personnel costs, soaring legal payouts, a clawback of federal grants and a slowdown in the local economy that has stifled tax revenue.
This story first appeared on Long Beach Post
More than 260 city employees could be laid off and over 200 more vacant positions could be cut in departments ranging from fire and police to homeless services in order to close a $58 million budget gap the city faces next year, according to a budget proposal from Long Beach City Manager Tom Modica released on Thursday.
The $4 billion spending plan, which covers the 2026-27 fiscal year, includes some new spending, including a 12-person High Crime Focus Team and expanded real-time crime center in the Police Department, permanent funding for Fire Engine 17 near Stearns Park, money for replacing traffic signs and sprucing up medians, investments in the city’s police crime lab and a $6.5 million helicopter paid for using forfeited assets and a law enforcement grant.
But the cuts outsize the gains. Layoffs could claim 4% of the city’s nearly 6,000-person workforce, with additional cuts at libraries, parks and the city’s homeless services hub as Long Beach copes with rising personnel costs, soaring legal payouts, a clawback of federal grants and a slowdown in the local economy that has stifled tax revenue.
A range of positions are set to be cut, spanning more than a dozen departments or offices, from managerial roles to rank-and-file employees. It includes fire captains and police lieutenants, analysts and clerks, crossing guards, librarians and investigators, among others. Officials have said the impact will be felt citywide, in the government’s ability to analyze and respond to emerging issues.
A city spokesman noted that police and fire employees losing their jobs will be transferred to open roles elsewhere in the departments, including in a new patrol beat specific to the shoreline. Many other employees will not be as lucky.
This is the first time Long Beach has proposed layoffs for employees paid out of its general fund in nearly six years. Dozens of Health Department jobs were cut in 2024, but those positions were tied specifically to the loss of state grant funding and the conclusion of Long Beach Recovery Act pandemic aid.
The past couple of budgets relied on reserve cash to cover their shortfalls and delay layoffs — $7.8 million in fiscal year 2025 and $5.8 million in fiscal year 2024, the latter pulled from COVID recovery funds. But officials say that strategy was short-term and unsustainable.
The city already pulled $27 million from four reserve accounts to close out the current fiscal year, exhausting its operating reserves and taking $16.5 million from its $50.1 million emergency reserve — money set aside specifically for natural disasters and unforeseen crises.
The moves would save $55.9 million, allowing the city to add $9.8 million back to reserves. It currently has only $33.6 million in reserves.
In public safety, the city proposed shutting down Fire Engine 14, which operates out of the station near Colorado Lagoon, to save $3.8 million, citing data showing it responds to the fewest fire calls in the city and 87% of calls received are for paramedics. Officials also proposed converting one engine from permanent staffing to cheaper overtime; in the Police Department, they suggest eliminating 17 vacant patrol officer positions, cutting $2.68 million in police overtime, consolidating part of financial crimes into property crimes, and eliminating 18 investigator roles.
Pressed by the loss of $11 million in county, state and federal funding, the Health Department faces heavy losses, including 79 positions cut — including eight positions within the city homelessness bureau. The reductions will affect programs and agencies that handle medical shuttle services, weekend homelessness outreach, one of the city’s two mobile homeless outreach centers, workforce development and homelessness prevention.
If approved, the proposed budget would also cut more than half of its motel voucher shelter rooms (from 40 to 15) and offer rapid rehousing assistance to 45 fewer households. City leaders said the cuts are targeted to keep all municipal shelter beds open, a crucial need as Long Beach struggles to reduce local homelessness, which rose by 3.7% in the past year.
Programs and services citywide would also see reductions. Hours and days at five city libraries — Bayshore, Burnett, El Dorado, Harte and Michelle Obama — would be cut to five days a week under reduced hours. Teen programming at Chavez Park, summer swim classes at Jordan and Millikan high schools, and the city’s involvement with the afterschool WRAP program are all expected to be eliminated.
An additional 25 positions would be cut by contracting out services for parking collections, school crossing guards and the city’s reprographics office. To offset administrative cuts in Public Works, parking meters would be installed around City Hall, Lincoln Park, the courthouse and Ocean Boulevard, and citywide parking rates would rise from $2 to $3 an hour, with the revenue redirected to street light repairs, solar conversions, weed abatement and median upkeep.
Several departments would also see agencies consolidated, which officials say is part of a necessary restructuring to focus on emerging issues like traffic safety and community health.
Workers were informed of potential layoffs as early as Thursday morning. Civil service rules allow for employees with more experience to bump those with fewer years on the job, meaning workers can move within or across departments, displacing colleagues.
The plan is not finalized yet. Going forward, the City Council will deliberate the budget through a series of public meetings, town hall forums and study sessions until final approval, typically at the end of September.
The earliest potential adjustments came Thursday, during Mayor Rex Richardson’s proposed version of the budget that would restore several programs and reinstate 70 positions.
For example, Richardson said he wants to undo the plan for a rotating engine; keep four of the 17 eliminated police patrol positions and two Quality of Life officers, while reinstating $400,000 for officers’ overtime pay; preserve youth programs, and homelessness programs; add new disease prevention and nursing positions; and continue to fund the Office of Equity position that oversees the city’s deportation defense fund while also adding more money to its account. The defense fund currently has $548,000.
Funding, he explained, could come from a line of new sources, like the $7 million to $8 million expected annually from the voter-approved county Measure ER, an updated cost-recovery agreement with the Port of Long Beach for fire services adding $5.9 million and $1.5 million saved from not holding a general election because races were already decided in the June primary.
Sparing no detail on the starkness of the economic picture, officials say it figures to get worse before it gets better. After a $27.3 million deficit expected next year, officials are confident they will have consecutive years of meager surpluses.
Despite the headwinds, they say, Long Beach is on solid footing, with a 17.5% drop in overall crime, with paramedics responding 30 seconds faster than they did last year, with 12% more city shelter beds, thousands of new, high-paying aerospace jobs, and work underway on new streets, bridges — and a very expensive pool — as part of a billion-dollar infrastructure plan ahead of the 2028 Olympics.
The city also welcomed a new amphitheater and an independent baseball team in the past year, and it continues to draw $2 billion in tourism and economic impact — outpacing San Diego, Anaheim, Phoenix, Los Angeles and San Francisco in key hotel use and visitor metrics.
By following the city’s plans, Richardson said Long Beach would achieve a structural surplus by 2028 — the first in more than a decade.
“Our responsibility today is not only to today’s budget, it’s to the long-term financial health of our city and to the thousands of employees who depend on a stable and sustainable organization,” Richardson said. “Our employees deserve to be more than temporary fixes that simply postpone difficult decisions. They deserve a city with a stable financial future. That’s why I believe we have to stay the course.”
The city will hold community meetings Aug. 5 to Aug. 14. The first session on Aug. 5 will run 6 to 7:30 p.m. To watch virtually, click the Zoom link here.
The following meetings will be held inside the Civic Chambers at 411 West Ocean Blvd in downtown Long Beach.
Topline:
LAist asked AirTalk listeners for their favorite SoCal ice cream spots, and the responses — paired with picks from LAist food writer Gab Chabrán — turned into a sprawling, only-in-SoCal list of scoop shops.
Why it matters: The region's ice cream scene is always evolving — old standbys like Fosselman's and Scoop's are still going strong, but they're now sharing the spotlight with a newer wave of artisanal shops built around Persian, Indonesian, Latino, and Asian American flavor traditions.
Read on… for the mega list spanning Los Angeles and Orange counties.
As summer marches on, expect the heat to stick around.
With these high temps, many of us are searching for a sweet frozen treat to cool off and maybe indulge a little.
I recently sat in for an AirTalk segment with fill-in host Josie Huang, where we both shared some of our local favorites to get ice cream and other frozen treats and heard from listeners who shared theirs.
Take a look and see if your go-to places are here.
Kinrose Creamery is one of my personal picks. Owners Maria Oveysi and Moe Kamal make Persian and Egyptian ice cream. Signature flavors include saffron pistachio rose, kanafeh, walnut baklava topped with pashmak (Iranian cotton candy) and sour cherry.
Locations:
Sad Girl Creamery is another one of my picks. Run by SueEllen Mancini, the pop-up ice cream stand is at Smorgasburg every Sunday, hawking Mancini’s nostalgic Latino ice cream novelties. Flavors include her riff on the iconic Choco Taco, along with a Gansito Sundae made with Mexican vanilla ice cream, strawberry-raspberry-hibiscus jam and yellow cake. Mancini always has something worth stopping by for.
Location: ROW DTLA, 777 S. Alameda St., Los Angeles
Listener Camille emailed to recommend All Chill, a shop specializing in small-batch and artisanal ice cream, with a built-in hip-hop museum (yup!). The shop ties the flavors to the neighborhood's cultural identity. Fan favorites include bean pie and, as a non-dairy option, cognac and currant.
Location: 3415 W. 43rd Place, Los Angeles
626 Ice Cream is another of my picks. Founded in 2020 by Amber Tan and Waldo Yan after both lost hospitality jobs in the pandemic, the duo took over the longtime Ace Frozen Yogurt space. With a completely reimagined space and menu, flavors include black sesame, roasted green tea, Yakult, lychee strawberry, mango calamansi, and malted chocolate.
Location: 160 E. Duarte Rd., Ste. E, Arcadia
Listener Ann-Marie from Whittier emailed to say Wanderlust Creamery is like a “travelogue featuring flavors from all over the world, and the quality is top-notch. When you walk outside and eat a cone, it doesn't instantly start melting like so many other places' ice cream." Signature flavors include sticky rice mango, Japanese Neapolitan, and Vietnamese Rocky Road.
Locations: Atwater Village, Costa Mesa, Venice, Irvine, Sawtelle, Pasadena, Tarzana, Topanga Social
Camille's email also flagged Bulgarini. Owner Leo Bulgarini, a Rome native and trained sommelier, places sourcing as his gelato shop’s reigning ethos — think Bronte pistachios from Sicily, Vestri chocolate from Florence, and Hawaiian macadamia for his various creations. And if you're interested in making a whole meal around your visit, the shop also serves a small pasta menu and tasting dinners a few nights a week.
Location: 749 E. Altadena Drive, Altadena
Owner Tai Kim may have quietly started the artisanal ice cream revolution when he opened the first Scoops over 20 years ago. The original has since closed, but two more locations have opened since — one in Highland Park, where Kim still makes the ice cream for all Scoops locations, and one in Chinatown. As listener Marty from Mt. Washington put it in an email, Scoops "make[s] different flavors all the time, very unusual flavors, and they make non-dairy options too" — case in point, the shop's signature Grape-Nuts–infused brown bread (my personal favorite) and its basil coconut.
Locations:
AWAN is another of my picks. 100% vegan, gluten-free, Indonesian-inspired. Started as a West Hollywood walk-up window; now has brick-and-mortars in Larchmont and Venice. Signature flavors include Balinese vanilla, chocolate Oreo, soursop mango ripple, and blue yuzu.
Locations:
"Definitely Fosselman's in Alhambra. Chocolate-covered strawberry is the best," listener Vicki from San Gabriel emailed to say. Josie backed her up, noting the shop still has that 1950s fountain-soda-shop vibe.
Location: 1824 W. Main St., Alhambra
"Mateo's Ice Cream and Paletas," listener Loretta emailed. Founded in 2000, Mateo's specializes in Latin American-style ice cream and paletas — think mango chile, black sapote, and horchata, alongside more classic flavors.
Locations:
"I just had the roasted strawberry and also pistachio baklava. Delicious," listener Caroline from Woodland Hills emailed about Magpies Softserve. Founded by chefs Warren and Rose Schwartz, Magpies also has locations in Silver Lake and Highland Park.
Locations:
"Lately I've fallen in love with Ginger's Divine Ice Cream," listener Jerome from Laurel Canyon emailed. The shop started in Culver City before adding a Mid-City/West 3rd Street location near the Beverly Center.
Locations:
Tocumbo didn't come up on air, but it's worth including. The shop takes its name from the small municipality in Michoacán that's considered the epicenter of Mexican ice cream and paletas — there's even a giant popsicle monument there. Siblings Jennifer Clausen-Quiroz and Ricky Quiroz started Tocumbo to continue that tradition, using recipes sourced directly from Michoacán. Standouts include ice cream sundaes made with Gansitos (chocolate-dipped snack cakes filled with cream and jam) and a wide selection of paletas, including chamoy, and a chocolate ice cream made with chocolate imported from Zacatecas.
Location: 956 S. Euclid St., Anaheim
"Gelato Paradiso in Laguna Beach is the cutest little shop right on the PCH and the flavors are always rotating. My favorite lately has been their take on the Biscoff – Biscotti-flavored ice cream. It is divine," said Fahim Khan, an LAist producer.
Location: 448 S. Coast Hwy, Ste. A, Laguna Beach