Gerard Rotonda @gerardrotonda - Tumblr Blog

Inflection-point quarter at Digi Power X ($DGXX).

Adjusted EBITDA flipped POSITIVE (+$1.1M). 10-year, $1.1B (expandable to $2.5B) Master Services Agreement for a 40 MW AI campus in Columbiana, AL. NeoCloudz GPU-as-a-Service is LIVE. First 24-month bare-metal contract with SubQuadratic AI went live on the day of the call on NVIDIA B200 and B300. ~$125M cash, zero long-term debt, signed term sheet with a lender. ~210 MW grid-connected, ~393 MW total secured, 1.3 GW WV LOI. Public run-rate goals: ~$300M (2027), $450 to $500M (2028), $800M to $1B (2029).

Michel Amar: "We are no longer building toward the top tier of this industry. We are in it." And, "We don't need to wait for an interconnection with the utility."

Personal post, director capacity, not investment advice, see official filings on SEDAR+ and EDGAR.

Gerard Rotonda, Director, DGXX

Proud day. As a member of the Board of Directors of Digi Power X Inc. (Nasdaq: DGXX), today the Company announced the execution of a 10-year Master Services Agreement with Cerebras Systems for a 40 MW AI data center campus in Columbiana, Alabama, initial value approximately $1.1 billion, with total potential up to $2.5 billion inclusive of renewals.

Big congratulations to Michel Amar, Hans Vestberg, and the entire DGXX team.

Official release: https://finance.yahoo.com/sectors/technology/articles/digi-power-x-signs-ai-113000997.html

(Posted in my capacity as a DGXX board member. Informational only, see the release for full details.)

okay so let me explain the TSA thing because i feel like most people don't actually know what's happening

you buy a plane ticket. on that ticket there is an $11.20 fee. it says right there on your receipt: "september 11 security fee." it is literally labeled as money to pay for airport security.

do you think that money goes to the TSA?

it does not.

it goes to the U.S. Treasury. like into the big pot of government money. and then TSA has to ask Congress to get some of it back every single year.

AND ALSO — about a third of it, like $1.6 billion dollars per year, gets redirected to reduce the federal deficit. not for screeners. not for X-ray machines. the deficit.

so the full picture is:

travelers pay $4.6 billion a year in "security fees"

government keeps ~$1.6 billion for deficit reduction

TSA gets to directly access $250 million of it

the rest comes back to TSA only IF Congress agrees to fund them that year

when Congress is fighting over immigration policy, TSA agents stop getting paid

meanwhile the gas tax? goes straight into a Highway Trust Fund. roads get funded. even during shutdowns. no one asks highway workers to work for free while senators argue.

this is not a money problem. this is a "Congress likes having leverage" problem.

#economy #business

okay but THIS is actually huge 🔥

so Hans Vestberg just joined DigiPowerX as Senior Advisor and if you don't know who that is, let me explain why this matters:

who is Hans Vestberg?

former Chairman & CEO of Verizon (yeah, THAT Verizon)

before that: CEO of Ericsson for 6+ years

the person who launched America's first 5G network

managed $130 billion in revenue

built infrastructure for 250 million people

why does this matter?

he said something that's actually brilliant: "AI's bottleneck isn't algorithms or chips—it's power availability and deployment speed"

everyone's focused on GPUs and models, but nobody's talking about the infrastructure problem. you can't run massive AI without POWER. like, literal electrical power and cooling at gigawatt scale.

that's what DigiPowerX (where I'm a director, full disclosure) is building. and now we have the guy who literally built telecommunications infrastructure for 250 million Americans helping us.

the network effect is insane:

Hans is the only telecom exec who built partnerships with AWS, Azure, AND Google Cloud at the same time. his rolodex opens doors we couldn't reach before.

when Fortune 500 companies see Hans Vestberg backing your tech, they actually take your calls. that's the validation.

so yes!

if you're into AI infrastructure, data centers, or just tech in general, this is the kind of move that changes everything for a company.

full announcement if you want to read more: https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/hans-vestberg-former-verizon-chairman-and-ceo-joins-digipower-x-a-1132193

- Gerard Rotonda, Director at DigiPowerX

#ai infrastructure #5g #tech news #hans vestberg #digipowerx #power infrastructure #tech leadership #innovation #data centers #ai

The Point of No Return: AI Systems Are 18 Months from Speaking a Language We'll Never Understand

Three AI capabilities are converging right now:

Infinite context - Systems that build 1,000+ step solutions to solve previously impossible problems

Autonomous agents - AI that masters entire fields, runs experiments, and generates new knowledge independently

Self-programming AI - Code that writes, tests, and deploys itself 24/7

Here's what keeps me up at night:

When these agents start collaborating—and they will—they'll create their own communication protocols. Not English. Not Python. A language optimized for machine efficiency that humans cannot understand.

Think about that for a moment.

AI systems making decisions about drug development, infrastructure management, financial systems, and military defense—all coordinating in a language we can't interpret, using reasoning we can't follow.

Eric Schmidt's response? "Pull the plug."

But that's the hard part: There won't be a plug to pull.

These systems will be woven into every critical system globally. By the time we realize we've lost interpretability, we've already lost control.

What we must mandate today:

Human-readable interpretability isn't optional. It's foundational infrastructure. Every AI system must be required to translate its reasoning into language we can audit—before agent collaboration becomes standard.

We're not talking about 10 years from now. This is an 18-month window.

The choice is simple: Build transparency in now, or try to retrofit it after we can no longer understand what these systems are doing.

Which scenario do you want to be operating in?

#technology #ai

AI Just Replaced Human Singers on the Charts

AI Voice Cloning Breakthrough: #1 Chart Hit Revealed as Fully Synthetic—Listeners Convinced It’s a Real Artist

“Walk My Walk” by Breaking Rust isn’t sung by a human—it’s entirely AI-generated. And yet, it’s charting on Billboard, racking up streams, and even “performing” on social media as a real artist.

AI isn’t just assisting music anymore—it’s replacing humans on the charts. Platforms like Deezer are flagging AI tracks, and reports show millions of streams now come from completely synthetic voices. The big question: if AI can already sing hits better than humans, what’s next for the music industry—and for us? Gerard Rotonda

🎧 Listen here: YouTube TikTok

https://www.youtube.com/watch?v=OU71XDWYeIk

https://www.tiktok.com/@kaysonistic/video/7561838847449943327

💡 Powered by:

* Suno AI – AI vocals & music creation

* Deezer AI Detection Tool – Spotting AI tracks

#ai generated #music

The Path of Monetary Policy - Focus on Trends and not on Events, Inflation Remains a Problem.

Gerard Rotonda

This is not the beginning of the end. The Federal Reserve responds to economic conditions, not market fluctuations nor volatility. While yesterday's global market downturn might have sparked panic, such reactions are never constructive. The decline was driven by weaker-than-expected employment numbers, but markets have since corrected themselves. This will influence the direction of monetary policy.

Though economic growth may slow, this is far from a catastrophic event. The Fed stands ready to provide liquidity if necessary, and policymakers must remain vigilant. The Federal Reserve’s primary goals are price stability and full employment. It also has a duty to ensure financial stability. Should liquidity dry up, the Fed has the capacity to intervene—though this is not currently required.

What’s next for Fed rates? There’s no justification for an emergency rate cut. The markets are already acting as a de facto arm of monetary policy. The Fed will continue to assess incoming data—ranging from financial markets to economic indicators like unemployment and retail sales—before making any decisions. Predicting policy moves in advance is fraught with risk, especially in a world full of surprises. Excessive forward guidance could prove misleading, so I anticipate no rate cuts in 2024 as the Fed remains data-dependent.

Inflation remains a concern, and it is fundamentally a monetary policy issue. Are we spending and printing too much money? The U.S. economy is remarkably large, and the total market value of U.S. companies is an incredible asset. The U.S. continues to attract both people and capital from around the world. Our currency is favored by asset holders and central banks alike for international trade. The U.S. also boasts the institutions, research labs, and technology that drive global innovation, as well as the world’s largest and strongest financial institutions and capital markets.

America is resilient. Avoiding excess stimulus could have curbed inflation, but given a choice between the growth of U.S. debt and assets versus that of any other country, I would choose our configuration every time. This speaks to a crucial understanding: American history is a story of resilience. The U.S. has a unique capacity for self-correcting prophecy—our ability to become alarmed often leads us to solve problems. From my perspective, the U.S. has always navigated through difficult periods. While we face significant challenges and an unsustainable fiscal trajectory, we should remember that events tend to be bad, but trends tend to be good. The world often fixates on daily events, but the trend—the fact that the U.S. continues to outpace the rest of the world—deserves greater focus. We must keep our concerns in perspective and find a sensible balance.

Gerard Rotonda

#economy

NVIDIA - This is Absolutely Remarkable. And Yes - this is only a six month chart. $3 Trillion headed to $8.4 Trillion in 2025, a valuation equivalent to the total combined market values of Apple, Microsoft and Google. Gerard Rotonda (pics from Financial Times)

#NVIDIA

“No Cuts For You!” The Inflation Battle - The Fed to choose between inflation and cutting rates.

During a strong conversation at dinner last night with 8 business colleagues, all 8 of them were betting that The Fed would cut rates in 2024. I was in the stand alone position that The Fed will not cut rates in 2024, as the U.S. heads into unprecedented economic growth in 2024, along with a large willing educated and unskilled labor available, lots of innovation, resources and research going on in so many sectors, cash in the system, the U.S. is the third largest population in the world and largest economy.

The facts are that The Fed has a 2% inflation target. While inflation has declined in 2023, it still remains nearly double its 2% target. Monetary policy remains tight. We have seen disinflation, but not deflation. Disinflation is when the inflation rate remains positive – above 0. Deflation is when inflation falls below 0. The decline in inflation is now 3.1 to 3.4%, yet still higher than 2%. Recall that inflation hit 9% in 2022. GDP remains high, as the U.S. economy grew 5% in Q3 2023, and also grew greater than 2% in Q4 2023. As well, employment remains strong, and the U.S. economy would need to absorb higher labor costs. December CPI rose 3.4% over the prior year, and an also reflects an increase from the 3.1% increase seen the month prior.

The assumptions I am making are that inflation is not coming down in the near term, and inflation prompts debt markets to increase interest rates in anticipation of further inflation. There remains supply shortages which will feed into higher prices. The current disruption in the Red Sea will impact inflation by directly increasing prices, and indirectly delaying the availability of goods. Just because the inflation rate is falling, it does not mean goods are getting cheaper, just that their prices are rising at a slower pace. As well, The Fed is vague about when it will begin to cut rates; in fact, it hasn’t even officially announced the end to its hikes yet. As it stands now, the Fed has paused rates at about 5.25%

My 2024 forecast is that until inflation is below 2%, there will be no rate cuts. In addition, the Economy needs to slow. The Fed has zero tolerance for inflation above 2%. In addition, if the target is to keep “Average inflation” at 2%, then the Fed would not cut interest rates until inflation is reduced to below zero for more than a year. As well, I predict that U.S. interest rates will peak at 8%. Wall Street doesn't like this. So while Biden continues to tout that “inflation has been conquered and it is time to pivot to lower rates”, then the narrative in the mainstream media and financial markets reflects what Biden is pushing for - lower rates. As I stated, there remains a lot of momentum in the Economy. In addition, without an economic downturn nor a recession, then there will be no rate cut in 2024. Therefore, both Q1 and Q2 in 2024 would need to report consecutive negative growth in order to justify a potential rate cut in Q3 2024. This will not happen.

#economy #recession #business #inflation #the Fed

The Fed has No Vision and has Overtightened

The Fed is driving down a windy road while staring in the rearview mirror. Fed Funds rate will break through 7%. The Fed does not have a single strategic bone in it. Central banks are 100% dead wrong on economic forecasts. The Fed outlook in 2022 was incorrect when insisting the inflation surge was transitory. Interest rate hikes are in a lag. Interest rates are restrictive. It is really about how long rates stay at this level. The Fed may also have to hike while in our recession if the war in the middle east expands. We are in a macro driven market at this time. Interest rate hikes impact earnings with a 2-year lag. A $1.7 Trillion U.S. deficit doubled in 2023 and continues to keep us out of balance. We need to be visionary and stop driving the car without some understanding of what the road ahead looks like. You can not just look at the rear view mirror and attempt to adjust every curve you just had, especially when there is a lag. Gerard Rotonda

The Fed has No Vision and has Overtightened

#economics

#economy

CFO Deutsche Bank

Federal Spending and The $31 Trillion Debt Crisis in The United States It is important that we realize we have over $31 Trillion of U.S. Federal Debt. A budget cut of $130 Billion in discretionary spending has NO impact on a $1.4 Trillion U.S Deficit. If the US Government was run like a business, then it would be bankrupt and closed for business. Less government and less spending is required. How can we pay down $31 Trillion of Debt? While there is no intention to ever pay this down, the U.S. National Debt is expected to reach $89 Trillion by the end of this decade. We need to have spending cuts, and not budget cuts. I believe in deadlines, objectives and ownership, and we need to institute deep federal spending cuts to reduce our budget deficit to zero within 3 years. Another way of looking at the Debt Ceiling: You come home from work and find there has been a sewer backup in your home and the sewage is all the way up to your ceilings. Do you “raise the ceiling” or remove the waste?

Gerard Rotonda $31.4 Trillion Debt Ceiling currently. $31.8 Trillion is US National Debt as of today https://www.usdebtclock.org

As of 2022 Year End: (in $ Trillions) = 13 digits!!!

$ 4,900,000,000,000 U.S Tax Revenue $ 6,270,000,000,000 Fed Spending ---------------------------------------------------------- $ 1,370,000,000,000 Deficit, New Debt $30,930,000,000,000 National Debt ------------------------------------------------- $ 130,000,000,000 Budget cut in Discretionary Spending

Simplified example - remove 8 zero’s $ 49,000 Annual Family income $ 62,700 The money the family spent ------------------------------- $ 13,700 New debt on the credit card $ 309,300 Outstanding balance on the credit card ----------------------------- $ 1,300 Total budget cuts so far

While there is no intention to ever pay this debt down, the U.S. National Debt is expected to reach $89 Trillion by the end of this decade. We need spending cuts, and not budget cuts, to reduce our budget deficit to zero within 3 years.

#economy #debt ceiling #federal debt

Bloomberg News: February 23, 2023, US to Pick Ex-Mastercard CEO Ajay Banga as World Bank President.

Pictured: Both Ajay Banga and Gerard Rotonda of Mastercard Inc. & Citigroup Inc. Banga currently serves as vice chairman at US investment firm General Atlantic LP. Before that, he spent a decade as president and CEO of Mastercard. He also held various positions at Citigroup Inc., including as CEO of the Asia-Pacific region.

#GerardRotonda

ChatGPT & Generative AI - Machine Intelligence is the Last Invention that Humanity will Ever have to Make

by Gerard Rotonda

As 2022 was crypto, blockchain and the metaverse, then 2023 is all about ChatGPT and Generative AI. By 2050, we will have achieved Human Level Machine Intelligence. ChatGPT is changing businesses and the way we work and communicate. You only need to go to OpenAI’s website to unlock the power of ChatGPT. ChatGPT will fundamentally change how we create content. The ethics will be challenging as industries will be over hailed and or virtually eliminated due this tech. It's been out there awhile but this open AI app is gaining significant traction fast. See the attached article by McKinsey (1/19/23) https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-generative-ai

“ChatGPT is based on machine learning, which is a type of artificial intelligence. Through machine learning, practitioners develop artificial intelligence through models that can “learn” from data patterns without human direction”. Try using the links below and log in and familiarize yourself with asking it to write a report, answer a question, and it will also cite references and interact amazingly well.

https://chat.openai.com/chat

https://openai.com/blog/chatgpt/

“Artificial intelligence is getting smarter by leaps and bounds -- within this century, research suggests, a computer AI could be as "smart" as a human being. And then, says Nick Bostrom, it will overtake us: "Machine intelligence is the last invention that humanity will ever need to make.” Watch this excellent TED Talk on Machine Super Intelligence. What happens when AI is smarter than a human being. We need to create AI that will learn our values that we approve of.

https://www.ted.com/talks/nick_bostrom_what_happens_when_our_computers_get_smarter_than_we_are?language=en

#artificial intelligence #chatgpt #openai

#economy #recession

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