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The Brief

The most important stories for you to know today
  • LA mayor orders city departments to streamline
    A home with fire behind it.
    A brush fire burns near homes in Pacific Palisades on January 7

    Topline:

    Los Angeles Mayor Karen Bass announced Friday that the city has issued its first permits for Pacific Palisades residents looking to rebuild their homes, and that a new executive order will further expedite that effort.

    What's in the order for residents: The executive order addresses streamlining permitting, updating incentives for all-electric rebuilding, insurance issues and more.

    How we got here: Debris has been removed from around 400 properties destroyed or damaged in the Palisades Fire earlier this year, and as the city rebuilds, the mayor said the new order will also help residents harden their homes and businesses against wildfires.

    What the mayor said: “We are taking action to help residents harden their homes and businesses against wildfires, ensure our city’s infrastructure can better withstand future disasters, and protect communities for generations to come, all while ensuring the pace of rebuilding continues ahead of expectations,” Bass said in a statement.

    Read on ... for details of what city departments are being asked to do and when.

    Los Angeles Mayor Karen Bass announced Friday that the city has issued its first permits for Pacific Palisades residents looking to rebuild their homes, and that a new executive order will further expedite that effort.

    Debris has been removed from around 400 properties destroyed or damaged in the Palisades Fire earlier this year, and as the city rebuilds, the mayor said the new order will also help residents harden their homes and businesses against wildfires.

    “We are taking action to help residents harden their homes and businesses against wildfires, ensure our city’s infrastructure can better withstand future disasters, and protect communities for generations to come, all while ensuring the pace of rebuilding continues ahead of expectations,” Bass said in a statement.

    What’s in the order?

    The executive order directs the Department of Building and Safety to provide recommendations within 60 days for a streamlined permit process for those who choose to go all electric in the construction of their homes or businesses. They’ll also have 90 days to draft suggestions to promote fire-resistant materials in construction to align with Gov. Gavin Newsom’s order that requires “an ember-resistant zone” for buildings and homes in high fire risk areas.

    The Department of Water and Power has 30 days to update its incentives program for those who choose to go all electric for the rebuild.

    The order also has Bass’ office working with the California insurance commissioner’s office to provide and explore insurance options for residents. And they will provide residents with pricing for building wildfire resistant homes.

    What about rebuilding public infrastructure? 

    Bass’ order directs the Department of Water and Power, Public Works and the Department of Transportation to explore ways to improve underground power lines in order to keep the power on during wildfires.

    They’re also tasked with exploring solar power and backup batteries to keep the lights on during extreme weather or fire events. The departments have 90 days to report back.

    Improvements to water supply 

    LADWP will come back within 90 days on how to improve the department’s water supply in case of future fire events. The order requires the department to conduct an audit on the department’s current water distribution and storage. It’ll look into its ability to support aerial and other firefighting operations, including pump capacity.

    Protection and prevention 

    The Bureau of Engineering has 30 days to come up with a plan to protect hillsides from erosion. The order points to developing solutions like fire-smart landscaping to prevent rain runoff from causing landslides and floods.

    The Emergency Management Department will audit the current wildfire preparedness and warning systems, and propose recommendations to improve evacuation routes and emergency notification systems. Other departments, such as City Planning, will also evaluate their policies regarding wildfire risk and extreme weather events.

    The order tasks the city’s Fire Department with finding ways to promote their Community Emergency Response Team for residents in high fire risk areas.

    What’s next 

    The departments will present their recommendations to a committee established by the mayor’s office, including representatives from the Palisades community, business and academic leaders.

    Bass said she has spoken with building and safety and planning officials about waiving fees. Some fees can’t legally be waived, she said. She said she is looking to change the law or reduce the fees.

  • Thanksgiving events and more things to do
    A light-skinned man wearing a Ramones shirt looks up at the camera. On the floor behind him is a grid of posters.
    Artist Shepard Fairey will have more than 400 prints on display at Beyond the Streets

    In this edition:

    Meet a turkey, eat a turkey, trot like a turkey, and more Thanksgiving events for your holiday week.

    Highlights:

    • Is scaring the living daylights out of your extended relatives a good game plan for your holiday weekend? If so, Paranormal Activity, inspired by the movie, is now a stage show that’s been a success in London and just opened in the U.S. in Chicago. Now, it’s here at the Ahmanson. Center Theatre Group made its first foray into the horror-theater category with 2:22 in 2023, and I was pleasantly surprised (well, OK, totally scared, but in a good way) that one could translate a movie jump-scare to the stage. The L.A. Times said the new production of Paranormal Activity is "brilliantly pulled off” — you’ve been warned!
    • On the more traditional end of the holiday entertainment spectrum is the utterly wholesome and ethereal music of the Vienna Boys Choir. Talk about a lasting impact — for six centuries, their renditions of holiday classics have defined the Christmas season. Kick your holidays off by catching their angelic voices when they come to Orange County at the Soka Performing Arts Center in Aliso Viejo.
    • Whether you have one mile, 5K or 10K in you before Thanksgiving dinner, there’s a run for you at the annual L.A. Turkey Trot in downtown L.A. Put on your sneaks and head to City Hall for an early start before you dig in to all that apple pie later in the afternoon. There’s an afterparty near the finish line in Grand Park so you can hang with your fellow runners, and money raised goes toward local organizations like the Midnight Mission. 
    • Shepard Fairey’s prints are synonymous with activism and social change, from his original OBEY posters to the iconic Obama HOPE image (which was just an answer on Jeopardy! last week). This new exhibit at Beyond the Streets showcases over 400 of Fairey’s prints and works inspired by print, commenting on the power of mass communication. 

    We here at LAist wish all our listeners, readers and members a Happy Thanksgiving! If you’re still looking for a great place to eat this weekend and don’t want to go the turkey route, Gab Chabrán has a list of unique ways to celebrate with cuisine, from Caribbean to Korean.

    It’s also a big week for sports locally ahead of the holiday, with Tuesday’s Clippers vs. Lakers game at Crypto.com arena — and the 2026 World Cup isn’t that far away, as more teams move toward qualifying, so keep a lookout for which games will be played in L.A. this summer. Music-wise, Licorice Pizza recommends singer-songwriter and former Moldy Peaches member Kimya Dawson (of Juno soundtrack fame) at the Troubadour, indie-rock comic Fred Armisen is at Largo and psychedelic trio Khruangbin is playing two nights at the Fonda. Tuesday, Damiano David of Italian rockers Maneskin goes solo at the Wiltern, and Icelandic indie-rockers Of Monsters And Men play the Palladium. Thanksgiving eve has alternative rapper Danny Brown at the Bellwether, and the reunited Mars Volta are at the Pasadena Civic Auditorium.

    Explore more on LAist.com, where you can find listeners’ suggestions for where to find serenity in L.A., head to Orange County for some best bagel picks and get tips for hosting a plant-based Thanksgiving.

    Events

    Paranormal Activity 

    Through Sunday, December 7
    Ahmanson Theatre
    135 N. Grand Ave., Downtown L.A. 
    COST: FROM $40.25; MORE INFO

    A light-skinned woman cries on stage in front of a chair.
    (
    Kyle Flubacker
    /
    Center Theatre Group
    )

    Is scaring the living daylights out of your extended relatives a good game plan for your holiday weekend? If so, Paranormal Activity, inspired by the movie franchise, is now a stage show that’s been a success in London and just opened in the U.S. in Chicago and now is here at the Ahmanson. CTG took its first foray into the horror theater category with 2:22 in 2023 and I was pleasantly surprised (well, ok, totally scared but in a good way) that one could translate a movie jump scare to the stage. The L.A. Times said the new production of Paranormal Activity is "brilliantly pulled off” — you’ve been warned!


    Vienna Boys Choir's “Christmas in Vienna”

    Monday, November 24, 7:30 p.m. 
    Soka Performing Arts Center
    1 University Drive, Aliso Viejo
    COST: FROM $60; MORE INFO 

    Several boys dressed in black uniforms with blue collars stand on a gray brick street and throw black graduation caps into the air
    (
    Courtesy Philharmonic Society
    )

    On the more traditional end of the holiday entertainment spectrum is the utterly wholesome and ethereal music of the Vienna Boys Choir. Talk about a lasting impact – for six centuries, their music has defined the Christmas season. Kick your holidays off by catching their angelic voices performing Beethoven, Britten, and more as they come to Orange County at the Soka Performing Arts Center in Aliso Viejo.


    L.A. Auto Show 

    Through Saturday, November 30 
    Los Angeles Convention Center
    1201 S. Figueroa Street, Downtown L.A.
    COST: FROM $45; MORE INFO

    An L.A. tradition for car enthusiasts, the annual L.A. Auto Show is in town for 10 days, taking over the Convention Center with new models from all the big carmakers, concept cars that will define the future of the roads, demonstrations and much more.


    Gentle Thanksgiving 

    Thursday, November 27, timed entry from 10 a.m.
    Gentle Barn
    15825 Sierra Hwy., Santa Clarita, CA
    COST: $75; MORE INFO

    Benjamin Franklin wanted to make the turkey our national bird, and with good reason — they are intelligent, courageous and native to America. You can honor the turkey by visiting the Gentle Barn for their annual Thanksgiving meet and greet with turkeys, where you can feed them treats and spend some time with these special birds.


    Turkey Trot Los Angeles 

    Thursday, November 27, 8 a.m.
    L.A. City Hall 
    200 N. Spring Street, Downtown L.A.
    COST: FROM $45; MORE INFO

    A light-skinned woman wearing a blue Dodgers hat and an orange and yellow tutu runs on a street. Behind her, several other people run and walk in a race.
    (
    Courtesy Generic Events
    )

    Whether you have one mile, 5K or 10K in you before Thanksgiving dinner, there’s a trot for you through downtown L.A. Put on your sneaks and head to City Hall for an early start before you dig in to all that apple pie later in the afternoon. There’s an after-party near the finish line in Grand Park so you can hang with your fellow runners, and the money raised goes towards local organizations like the Midnight Mission.


    Volunteer opportunities 

    Ongoing 
    Various locations 
    COST: FREE; MORE INFO

    A light-skinned woman wearing a mask passes three boxes from the back of a truck to a black man wearing a mask. A woman in the foreground looks on.
    (
    Joel Muniz
    /
    Unsplash
    )

    Have a few days off this week? Staying in town? Consider volunteering for one of the many local organizations that need your help to reduce food insecurity during the holiday season. LA Works has a huge list of options, including this one working the annual Thanksgiving Feast at the L.A. Boys & Girls Club.


    Thanksgiving Gratitude Meditation with Heather Hayward

    Thursday, November 27, 9 a.m. 
    Online 
    COST: DROP-IN $39; MORE INFO 

    A light-skinned woman with blonde hair and a gray t-shirt smiles in front of a digitally created gold and yellow fall background
    (
    Courtesy Unplug
    )

    We all need a moment of zen before dealing with holiday stress. Take 45 minutes out of your morning for this online meditation session with Unplug Santa Monica teacher Heather Hayward.


    Shepard Fairey: Out of Print

    Through Sunday, January 11
    Beyond the Streets
    434 N. La Brea Ave., Hollywood
    COST: FREE; MORE INFO

    Flyer for Shepard Fairey's Out of Print show, featuring 10 red, black and white Fairey prints at the bottom
    (
    Courtesy Gold Atlas
    )

    Shepard Fairey’s prints are synonymous with activism and social change, from his original OBEY posters to the iconic Obama HOPE image (which was just an answer on Jeopardy! last week). This new exhibit at Beyond the Streets showcases over 400 of Fairey’s prints and works inspired by print, commenting on the power of mass communication.


    L.A. Times Feature Documentary: Out of Plain Sight

    Monday and Tuesday, November 24 and 25, 1:30, 4:20, 7:10 p.m. 
    Laemmle NoHo
    5240 Lankershim Blvd., North Hollywood
    COST: $14.50; MORE INFO  

    A barrel reading "out of plain sight" sinks underwater
    (
    Courtesy LA Times
    )

    Built off the deep environmental reporting of LA Times investigative journalist Rosanna Xia, the new documentary Out of Plain Sight follows Xia’s reporting on a toxic waste dump off the coast of L.A. Her reports found that as many as half a million barrels of toxic waste had been quietly dumped into the ocean decades ago. The film follows Xia as she searches for answers at sea, in the lab and up and down the California coast. The evening screenings are followed by a Q&A with the filmmakers and special guests.


    Thanksgiving Potluck

    Thursday, November 27, 12 p.m.
    Weary Livers
    2819 Pico Blvd., Santa Monica 
    COST: FREE; MORE INFO

    A large group of people pose outside on a digital poster that reads "Thanksgiving Pot Luck"
    (
    Los Angeles Fun Events
    /
    Eventbrite
    )

    Games, karaoke and drinks (of course) are all on tap at Weary Livers for this untraditional (but sure to be fun) Thanksgiving potluck. Meet some new friends and sing your heart out if you’re staying in town this weekend.


    Voodoo Doughnut Thanksgiving Pie Box

    Through Sunday, November 30 
    Various locations
    COST: CALL TO CONFIRM; MORE INFO

    The Portland-based donut chain developed four holiday-themed creations to include in a special Thanksgiving Pie Box. Call 661-786-6366 to pre-order your Thanksgiving Pie Box to pick up between November 24 and 30. Partial proceeds from the limited-edition box will go to support local food banks and food pantries.

  • Sponsored message
  • How one family has been shut out from shelter
    A pair of arms with light skin tone wrap around a small boy with light skin tone, who holds in his hands two toy cars. They sit on a bench next to a woman with light skin tone.
    Wayne and his family have had to live in their car as they haven't been able to find housing resources.

    Topline:

    L.A. County is proposing cuts to homeless services next year, at a time when families have already been struggling to find shelter.

    A family’s struggle: Since October, L.A. resident Wayne has had to stay in his car with his partner and young child after being told by service providers there’s no housing assistance available. “A lot of the days is trying to make sure we can get a meal or two in limited funds, is trying to think outside the box and see if there's any other organizations to connect to,” he said.

    The  backstory: Homelessness among families with children has been on the rise. At the same time, recent funding cuts have strained services for families experiencing homelessness.

    Wayne hands over a toy car to his son, A, at a park in Mid-City. The 4-year-old rolls it across a bench near the playground and watches it fall onto the pavement below.

    “He'll find fun in most things,” Wayne said. “He’s pretty happy all the time. Nothing really bothers him very much — just going to bed.”

    Bedtime, recently, has been a lot harder for A, who’s on the autism spectrum. Since mid-October, Wayne, alongside his partner and their son, have been staying in their car. (We’re using A’s first initial and Wayne’s first name only to protect their family’s privacy.)

    “He does not like it, he hates it,” Wayne said. “The only way he'll sleep in the car is if he's literally on, usually my lap.”

    They’re one of the many Los Angeles families who have struggled to find housing over the past several months as options dry up. And now it’s likely to get even harder for families like theirs, in the face of more funding cuts.

    Wayne and his family lost their apartment in June after falling behind on their rent. They stayed in motels across L.A. county with about 40 days worth of vouchers — 32 days from the CalWorks program and 8 days through 211.

    A small child, back to the camera, walks past a playground slide.
    Despite touting progress on helping unhoused individuals over the last year, the city and county Los Angeles has not made progress on helping unhoused families.
    (
    Elly Yu
    /
    LAist
    )

    But they haven’t been able to get any more since, and the family shelters they turned to have been full. They pawned off some items, like a guitar, to help stay indoors, but that only helped in the short-term. He says it’s been a struggle to find a safe place to sleep with a young child.

    “The first time we slept in the car it was really, really hot, and he ended up with heat rashes all over his back,” he said.

    They had money saved up

    In April of last year, Wayne was laid off from his job in A/V tech support. His partner has a chronic illness so he’s the sole earner. Up until then, he had saved up for a rainy day situation. He’d invested in retirement, and even had some stock.

    “I’m a dad now — obviously it’s such a different way of thinking about the short term, future term, long term,” he said.

    He had $30,000 saved up, enough to stay afloat for about six months to eight months… but then, he couldn’t find a job. By November of last year, they had run out of money.

    “It's been awful. Most of the jobs now are like part-time or temporary positions,” Wayne said. The jobs didn’t offer enough to sustain a one-bedroom apartment in L.A.

    A person with light skin tone stands over a bench, holding a stack of papers that describe housing resouces.
    Wayne's family got a stack of papers to resources from a recent visit to PATH, a homeless services provider. Providers say they haven't been able to offer housing assistance to new families seeking help because of recent cuts.
    (
    Elly Yu
    /
    LAist
    )

    In order to reasonably afford a one-bedroom in the L.A. area, workers need to earn at least $40.02 per hour, according to the National Low Income Housing Coalition.

    Aside from the job searching process, Wayne has spent most of his days trying to find a meal or two for his family — and on the phone trying to find any other resources. He’ll also take his son to the park or the library.

    “The most important thing is trying to make sure he basically is comfortable as much as possible, that he's [having] fun, that he's not really understanding what's going on — which I think we're doing a good job [at] so far,” Wayne said.

    Trying to find housing

    Recently, they went to a family solutions center at PATH, a homeless services provider in LA. There was no housing assistance available, so they gave Wayne a list of other places to try. He and his family had already tried those resources.

    Wayne’s car has a stack of papers like these ones, pointing to laundry services and food banks and Medi-Cal resources.

    Sasha Morozov, regional director of services at PATH, says that’s what her agency has had to do in recent months, as they’ve been unable to take on new families due to recent funding cuts. She said they’ve had to change their strategy from trying to get people housed imminently to connecting them to other resources — such as childcare or school-based help.

    “ That really has shifted, not because people don't want to help, but the resources aren't there. It’s heartbreaking.”

    Recent funding cuts include a 71% reduction in state dollars that have helped families experiencing homelessness. Morozov said she’s worried the situation will get even worse with new federal cuts as well as a proposed cut of $300 million to county funding for homeless services next fiscal year. LAist reported in August that homelessness among families with children has been rising.

    Data from 211 LA show that calls for emergency shelter from January this year to early September were up by more than 20,000 calls, compared to the same time period last year.

    For Wayne and his family, they’re now looking to move out of state. After a year and a half of job searching, he recently got a job offer from a company out in the Midwest. Though he’s grown up in California, he says he has to leave.

    He said he was disheartened to see the mayor and other officials tout recent homelessness count numbers.

    “It felt like a slap in the face,” he said. “Most people can't afford a one-bedroom on a full-time job here. There's nothing to celebrate. Everyone is closer to homelessness than they are to stability. Most people who are working class, especially young people, probably 40 and under, cannot afford a one bedroom by themselves.”

    His new job is supposed to start in January. He said as soon as he can save up enough money for a security deposit and rent a new place out of the state, they’ll be driving out there.

    Wayne says his son doesn't understand what's going to happen next, but says he'll adjust quickly.

    “As long as he has, like, ice cream and the snacks that he wants, he's happy to go anywhere,” he said. “He loves when we drive around. I already know on the road he would absolutely love to see all the change in the scenery and he's gonna be excited.”

  • The next big thing? Or money pit?

    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."

    White House AI adviser David Sacks speaks onstage during The Bitcoin Conference at The Venetian Las Vegas in January.
    (
    Ian Maule
    /
    AFP via Getty Images
    )

    "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 huge infusion of cash

    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.

    Paving the AI future with debt and other risky financing

    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."

    An aerial view of a 33 megawatt data center with closed-loop cooling system in Vernon, California.
    (
    Mario Tama
    /
    Getty Images
    )

    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."

    Enormous spending hinging on returns that could be a fantasy

    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.

    Circular deals raise even more concern

    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.

    Open AI CEO Sam Altman speaks during Snowflake Summit 2025 at Moscone Center in June.
    (
    Justin Sullivan
    /
    Getty Images
    )

    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 high profile investors see bubble-popping on the horizon

    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

  • Here's the best time to hit the road

    Topline:

    A record number of people are expected to travel within the U.S. for Thanksgiving, be it plane, train or automobile.

    Why it matters: Nearly 82 million are projected to travel at least 50 miles from Nov. 25 to Dec. 1, an increase of 1.6 million people compared to last year's holiday, according to an AAA report released on Monday. Most of them will be hitting the road in a car, with about 73.2 million people expected to drive, AAA said.

    Read on... to find out when's the best time to hit the road.

    A record number of people are expected to travel within the U.S. for Thanksgiving, be it plane, train or automobile.

    Nearly 82 million are projected to travel at least 50 miles from Nov. 25 to Dec. 1, an increase of 1.6 million people compared to last year's holiday, according to an AAA report released on Monday.

    Most of them will be hitting the road in a car, with about 73.2 million people expected to drive, AAA said. That's 1.8% more car travelers compared to the 2024 holiday period.

    AAA projected 6 million people to travel by plane within the country for the holiday, a 2% increase from last year. Due to concerns over recent flight delays and cancellations, however, AAA also said that number could end up dropping slightly if travelers make last-minute arrangements to use other forms of transportation. Staffing shortages during the prolonged government shutdown earlier this month resulted in mass flight disruptions.

    The FAA lifted its directive that called for an emergency reduction in flights, allowing airlines to return to operating normally. Aviation experts warned it could take some time before flights return to normal, but industry leaders appeared confident that airline operations would return to normal pre-shutdown levels in time for the Thanksgiving travel frenzy. Weather forecast to bookend the holiday in some parts of the country could cause flight disruptions and delays.

    The Federal Aviation Administration (FAA) said Friday it expected the upcoming holiday rush to be the busiest Thanksgiving travel time for air travel in 15 years, with Tuesday being the busiest flying day.

    Travel across other transport modes — bus, train and cruise — was forecast to increase 8.5% this year, with a likely uptick in last-minute bus and train bookings

    "People are willing to brave the crowds and make last-minute adjustments to their plans to make lifelong memories, whether it's visiting extended family or meeting up with friends," Stacey Barber, vice president of AAA Travel said in a statement on Monday.

    Here is what else to know:

    Driving in the afternoon? Think again

    Tuesday and Wednesday afternoon are expected to be the most congested times for drivers in major metro areas, according to INRIX, a transportation analytics firm.

    If driving, the best times to hit the road for the holiday will be before noon on Tuesday and 11 a.m. on Wednesday to avoid backups, according to the firm. Thanksgiving Day will have minimal road traffic impacts.

    When returning home after the holiday, travelers are advised to start driving before noon on any day except Monday. The Sunday after Thanksgiving will likely have heavy traffic most of the day and the best time to travel Monday will be after 8:00 p.m., INRIX said.

    Weather could be messy, but should clear up for your trip back

    During peak travel times, from Monday through Wednesday, rain extending from Southern Texas up to Minnesota will move across the country to the east, according to the National Weather Service (NWS).

    "Monday into Tuesday will probably be a little problematic anywhere from Texas, eastern Oklahoma, into Arkansas and northwestern Louisiana," Bob Oravec, lead forecaster for the NWS, told NPR.

    By Thanksgiving Day, things will be a little drier across the U.S. Temperatures will be colder than average for a majority of the country on Thanksgiving morning, with central parts of the U.S. seeing temperatures in the teens. On Black Friday, there will be warmer than average temperatures from the Great Plains to the West Coast, with places like Denver, Colo., seeing temperatures in the mid-50s, Oravec said.

    Some of the worst weather will be across much of the central and eastern U.S. where there will be lake-effect snow showers coming off the Great Lakes, Oravec said.

    For holiday travelers returning home on Friday and Saturday, the weather should be decent for a large portion of the country, he said. But a storm system is expected to develop over the weekend.

    On Saturday and Sunday, the system could bring heavy snow across western Nebraska, South Dakota and North Dakota as well as parts of Minnesota into Wisconsin, according to Oravec. On Sunday, from Texas up into Missouri and Illinois, chances of rain are forecast to increase.

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