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Democrats Win Big in Historic Rebuke of AI & Dutch Cinema Hypnotizes Moviegoers

30m 53s

Democrats Win Big in Historic Rebuke of AI & Dutch Cinema Hypnotizes Moviegoers

The recent U.S. midterm elections delivered a sweeping political shift, with Democrats gaining control of both chambers of Congress, flipping key states like Texas and Kansas, and triggering a major backlash against AI-driven data centers and tech monopolies. Voters cited AI and data centers as a crucial factor in their decisions, leading to widespread local restrictions and a significant political rebuke of tech companies. This shift has intensified scrutiny on major players like Elon Musk, Google, and Alphabet, with Musk facing heightened scrutiny over his investments and Starlink, and Google facing accusations of monopolistic control in education through its Chromebook and search ecosystem. Meanwhile, AI is disrupting industries: Canva laid off over 1200 employees and shifted to in-person work, while a Dutch cinema chain uses hypnosis to let viewers relive movies, sparking debate on memory and entertainment. Investment strategies are shifting toward platforms like LinkedIn ads, which offer high ROAS. The broader tech sector faces regulatory pressure, with antitrust concerns rising and the stock market showing resilience despite short-term volatility. These developments reflect a growing public skepticism toward AI and corporate influence, especially in education and public policy.

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Marketers, say you invest in something that seems incredible, like millions of views, but then don't see any revenue. That's not going to make your CFO happy. Instead, invest in LinkedIn ads. They generate the highest ROAS of all major ad networks. Spend $250 on your first campaign on LinkedIn ads and get a $250 credit. Just go to linkedin.com slash MBD. That's linkedin.com slash MBD. Terms and conditions apply. Good morning, Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, they're flipping Texas, I can tell. How Democrats pulled off a historic election night route. It's Wednesday, November 4th. Let's ride. There was a lot of mogging that went on in the elections last night. But first, are you surprised I said the word mogging? Maybe you shouldn't be. Collins Dictionary just named mogging its word of the year. The term first appeared in bodybuilding culture in 2016, but entered the mainstream a decade later, used to mean outperforming or outshining someone or something. Toby, so far for words of the year, we got maxing from dictionary.com and mogging from Collins. Kind of ideological cousins, no? I would say mogging mogs maxing, though. Wouldn't you agree? I'm just glad that these are becoming widespread enough that I don't have to explain it anymore. I remember last year, I spent like half an hour trying to explain to my wife's friends what people meant when they said clavicular was mid-jester gooning at the club or how ASU frat leader was mogging. It was a nightmare. You sound like a crazy person, but now I can just say, hey, go look it up in the dictionary. Collins has it right there for you. And now a word from our sponsor, Runway. I got big ideas, Neil. Lots of big ideas, video billboards, other things. I just need a way to make them real. Then check out Runway. They're helping people bring the biggest creative ideas to life. Runway's creative suite does give anyone the power to generate, edit, and finish video images and audio for marketing campaigns, including social and product content. So whether you're solo, dolo, or part of a team, you can produce the on-brand content you need. With Runway Agent, you can tell it about your project, product, audience, or live campaign, and it finds the angles most likely to hit. Then it starts building concepts, ads, full campaigns, and variants, localized creative, and more. Sign up for free at runway.com slash morningbrands.com. If last night's midterm elections were a football game, you turned it off at halftime. It was such a rout. A blue wave turned into a blue tsunami, turned into a blue earthquake as Democrats trounced Republicans, taking back control of the House of Representatives and the Senate, and securing governor's mansions in a number of states they weren't expected to. The Democrats did it by reaching into deep red areas that had been pro-Trump and turned them blue. The Dems flipped Senate seats in Maine, Iowa, Ohio, North Carolina, South Carolina, Kansas, and Texas. The last two are particularly notable. Kansas hasn't had a Democratic senator since 1932, which was before The Wizard of Oz came out, and Texas hasn't had one since 1988. When all the votes are tallied up, the Democrats won't just have a majority in the two legislative chambers, but a commanding one. NBC News projects they'll take 55 Senate seats come next January, out of 100 possible, and at least 250 in the House of Representatives. There are 158 seats in the House, a number they haven't had since 1993 when Bill Clinton took office. The generational drubbing we saw last night, exit polls showed, was a forceful rebuke of the current administration. Americans from blue and red districts came out in droves to voice their displeasure around persistent inflation, the war in Iran, corruption, and Trump's full-throated support of AI. As one user posted on X, Trump failed at regime change in Iran, but he succeeded in Texas. Toby, what were your takeaways from this shocking I mean, disaster for data centers, Neil. If you combine Gina Hinojosa's gubernatorial victory in Texas with other Democrats who won gubernatorial races in Georgia, Ohio, and Pennsylvania, it leaves about half of all proposed AI data center additions in the U.S. vulnerable to stricter local rules and pushback. Texas accounts for nearly 30% of the U.S. data center capacity that is set to come online by 2028. So even just losing Texas alone is a massive hit to AI industry and data centers. And then you toss in those other states as well. I thought this was a good quote from a GOP lobbyist who told Politico, there's no way that you can look at how people were voting around AI and data centers and not conclude that Republican messaging around the topic just really turned off voters. If you look at exit polls, this was a massive reason why so many people voted the way they did. They just don't want these data centers in their backyard. Yeah, I want to talk about those exit polls because extremely striking. 23% of voters said that AI and data centers were crucial to their vote. 56% said it was a crucial or major factor. Granted, corruption, immigration, and Iran were more important to voters. But the fact that 56% said it was a crucial or major factor, I mean, that is very significant. I don't think anybody had this on their radar one, two years ago that data centers would be such a big political issue. And you mentioned the gubernatorial races, but there were a ton of other data center or restrictions across the country on local ballots. And they might have just whiffed completely. There were 41 moratoria across the country. And some say that the votes are still being tallied up, but they are going to go 0 and 41. So a very strong rebuke of data centers in this election. You're thinking ahead. This is not the last election we're going to have. AI is only going to proliferate and become a more part of our lives. Well, looking at the next presidential election, you have to see that those numbers of people saying this is a big issue to me will only grow from here. And tech in general had a rough one. If you just look at who was pouring money into these races, they also kind of went over. VCs Mark Andreessen, Ben Horowitz contributed over $115 million, mainly to Republican causes. Greg Brockman, opening eyes president, funneled $50 million primarily to GOP campaigns. And the biggest one of all is Elon Musk. Remember, he plowed. $224 million into Texas races alone this year and doesn't have a lot to show for it. Basically has nothing to show for it. This was a, even though Republicans lost big, this was a massive rebuke of Elon Musk in general. I mean, the dude moved to Texas specifically to escape the political climate that he thought made doing business in California difficult. Now that political climate has followed him to Texas. A lot of people think there's going to be increased scrutiny specifically around his Starlink and its role in Ukraine. Now that Democrats are in control, there are already calls from both sides of the aisle to investigate Elon's role in the war in Ukraine. Now those calls are only going to be turned up. That dial is going to turn up to 10. Yeah, he probably, I mean, moved to Texas, but he should probably move to Washington DC because now that Democrats have the House and the Senate, they are going to haul in a lot of these tech executives that cozied up to Trump over the past two years. And, you know, they're going to have to, you know, have them do a hearing. I mean, Ed Markey, who is the Senator of Massachusetts reelected last night said they are going to need to plant new forests for all of the subpoenas we'll be printing. And so it's very interesting to see the tech reaction to last night, Sam Altman, who's the CEO of open AI, who probably will be one of those people who will have to hear before a democratic house tweet posted on X people should always be in control of the future. Open AI is against the notion that it would be acceptable for people to be relegated to the role of doing things that AI systems think makes sense to reward in humans. So you're seeing a little bit of a retreat from the plowing AI down everybody's throat from the person who's been maybe at the forefront of developing AI. And also Elon Musk posted data centers in space looking pretty appealing right now because he knows there's going to be a lot of restrictions coming down, especially in Texas. Yeah. He also said, guess my election interfering space lasers didn't work this time. So he's taken it on the chin for sure. Outside of Elon Musk and the AI industry, there are other corporate targets as well. Paramount and its mega merger that kind of got ushered through under a friendly administration. Antitrust scrutiny could raise back again now that Democrats control both branches of government. Same could be for Alphabet as well. Senator Ruben Gallego warned companies pursuing mergers, once we take power, whoever the president is, we're going to break up your company. So that just kind of gives you a sense of the climate around mergers going forward. Under the radar winner could be Washington area law firms because there's something called the murder board business. I had never heard of this before, but basically when you are going to go before a Senate panel or you're going to get grilled in front of Congress, there is people in law firms who put together mock congressional panels to simulate that experience. And that business is expected to boom. So if you're in the murder board business right now, it's going to be a lot of fun. So let's talk about the stock market. What is going to happen to the market after these elections? Well, they're up this morning and the general sense that we've seen throughout history is that gridlock is good. We have president Trump, a Republican in the white house. We're going to have Democrats in the, in Congress. And when things just can't move one way or another, that's generally seen as a positive for the stock market. President Trump posted last night, one of his, one of his few posts, he, he posted a picture of his hat, his red hat that said, veto. And I think that says all you need to know. Maybe the, the democratic Congress are going to bring these bills. President Trump is going to veto them. This is status quo. This is certainty for the market. That's what they want to see. And you expect stocks to go up over the next couple of months. In fact, after the midterm elections, this is one of the most, you know, one of the most certain things about the stock market is after the midterm elections, they go up in the year after. Since 1950, the S&P 500 has finished higher in the 12 months after midterm elections. Get this, this is a pretty good record, 19 out of 19 times. So there might have been a little spookiness around the market going into this election, thinking that if Democrats did unleash a blue wave, they were going to restrict data centers and you'd see a huge tech sell off. But maybe it was all priced in because we've seen a huge tech sell off over the past few weeks. And now we're seeing futures up this morning. Yeah. If you looked at futures as the blue wave was sweeping across the country last night, it looked really ugly for a second. There was kind of a knee jerk sell off. The Nasdaq futures were down at 1.2 and a half percent. Same things for Asian stocks that were in the A's. They were selling off. And then all of a sudden kind of just flipped. Some of it is because Trump kind of accepted the results. That was one big question mark. That is some uncertainty. Would he try to make a big deal about the election results pulling in? So investors started buying the dips once that happened. Also, it looks like it rallied on stocks are rallying on expectations that a blue wave would limit Trump's ability to add to the deficit. One big, beautiful bill has all these provisions that. People seen as raising the national deficit. Maybe that will be reined in a little bit as well. Just just zooming out to a couple more industries because we talked a lot about tech and AI. It looks like this is bad for the defense industry. A Democratic sweep puts pressure on defense stocks. They might try to reel back in some of that spending. Health care stocks might benefit, though. Democrats are focused on restoring or modifying some of the Medicaid reforms that are contained in the one big, beautiful. Bill act already. Investors were kind of rotating into health care stocks in the lead up to this election. And then bank stocks actually might take a hit once more because that is one place that Trump and Democrats kind of align. Trump has been trying to cap credit card interest rates at 10%. That is something that Democrats also agree with. So that could be bad for bank stocks in general. So those are just industry by industry. What might happen going forward? Not investing advice. Don't know what's going to happen, but generally that's the way things might shake out. And finally, let's let's close out our sort of midterms recap with some of the local and state ballot initiatives that we've talked about on this show, specifically the one that was got national attention was the California billionaire wealth tax. And this was this was prop 40 tech billionaires had poured hundreds of millions of dollars into this ballot initiative. Some have even left California to begin with ahead of this possible passage. Well, it's not completely called yet, but it looks like this billionaire tax. Is not going to pass as of this morning. There's just a four percent chance of the billionaire tax passing on Kashi. So we've talked about tech billionaires having having a bad night. Well, this is maybe one area where they're claiming a win and some other interesting ballot initiatives at the local level. Nebraska voters rejected two ballot measures that would have legalized online sports betting in this state and gambling companies like DraftKings and FanDuel. They poured more than 20 million dollars into that campaign. So maybe we're starting to see a little political backlash. We've already been seeing it against against sports gambling, prediction markets, things like that foie gras. We talked about whether to wait for the foie gras, whether D.C. would ban foie gras at restaurants. It's also not called yet. One hundred percent. But it looks like that Washington, D.C. will be banning foie gras. And it was also in another city that wouldn't talk about Denver. Denver voters also approved the banning of the sale of production of foie gras. And then finally, I want to head to Idaho where. Yeah. There's a lot of important things on the ballot last night, but the folks in Idaho were deciding on whether they should have a state gun or not and what that state gun should be. And right now, again, not called, but it looks like the Winchester model 1873 lever action rifle, a.k.a. the gun that won the West, is in the lead. Thank goodness we got an update on that. You never know what's being voted on across the country at any given time. So thank you for bringing that one to our attention, Neil. All right. We're going to take a quick break and come back with a story and schools right after this. Did you feel a shift? Yes, I moved everything three centimeters to the left. It's very exciting. No, the shift in how business runs with A.I. Rubrik helps make sure that shift actually works in your favor instead of against you. With Rubrik, you don't have to choose between moving fast and staying secure thanks to their agentic cyber resilience. One platform covering a company's data, its identities and its A.I. systems. See what it looks like when security and A.I. operations change. Work together at rubrik.com slash M.B. That's R-U-B-R-I-K dot com slash M.B. Toby, say I want to invest in A.I. Okay, I want to invest in A.I. That's what the Global X Artificial Intelligence and Technology ETF, AIQ, is for. It gives investors a way to participate in the economic shift A.I. created with companies across the A.I. ecosystem from development to utilization all in one package. AIQ casts a wider net across software platforms, designers, cloud infrastructure providers, and more. It tracks the INDXX Artificial Intelligence and Big Data Index, which is positioned to give investors exposure to A.I.'s evolution rather than just its headlines. To learn more, head to globalxetfs.com slash funds slash AIQ. That's globalxetfs.com slash funds slash AIQ. Toby, what do you think looks good to a CFO? Horses. Horses as far as the eye can see. I was thinking something. Along the lines of good investments that generate high ROAS, like LinkedIn ads. Reach the right buyers with LinkedIn ads when you target by company, industry, job title, and more. Spend $250 on your first campaign on LinkedIn ads and get a $250 credit for the next one. Just go to linkedin.com slash M.B.D. That's linkedin.com slash M.B.D. This summer, Google brought an unwanted pest issue to LinkedIn.com slash M.B.D. That's linkedin.com anymore. The reason, according to Chris Phillips, Google's vice president for education, search and AI are deeply integrated. So if a school bans AI, students will lose access to search as well. If it seems crazy that Google can present this ultimatum to how teachers run their classrooms, remember that the tech giant has a ton of leverage over how kids learn because many school districts are its customers. Chromebooks are ubiquitous. Workspace products like Gmail and Docs are deeply integrated, as is Google Classroom, the company's climate platform teachers can use to run their curriculums. So it's used that leverage to force schools into an uncomfortable choice. Do you let the AI fox into the henhouse and risk worse learning outcomes for students or lose access to Google search altogether? Neil, it's a scholastic Faustian bargain. Yeah, the main concern is that kids will never learn or understand the concept of a Faustian bargain because AI is telling them all the answers. Progressive lawmakers absolutely lit into Google following this announcement. Zoran Mamdani, the president of Google, said, I don't know, I don't know. I don't know. I don't know. I don't know. I don't know. I don't know. I don't know. I don't know. Zoran Mamdani, the mayor of New York City, said Google is trying to use its monopoly power to force AI into our public schools. Our public schools exist to serve students, not to grow the profit margins of big tech. And Lena Kahn, who is the former chair of the U.S. Federal Trade Commission, she is been a thorn in the side of big tech for years now, just rallied onto that statement saying that Google is using its monopoly in search to, quote, coerce schools into adopting AI. So you had all these folks who are trying to force AI into our public schools. And they're accusing Google of being monopoly, not just maybe in search, but also particularly in the classroom. As you mentioned, they have a really stranglehold there to take to use schools hostage to force feed AI to them like foie gras. It's banned now, Neil. The interesting part about Google's position on this, obviously, is that they actually think AI can help students learn. They've cited a couple of studies. One is from the University of Tokyo, where a randomized trial conducted within the University of Tokyo compared students using guided learning, which is a new product from Google, a new AI-enabled product from Google, versus students who were just using conventional online resources. And they found guided learning users found an 8.1 percentage point increase in their learning versus conventional online resource users was only 5.3 percentage points. That study involved just a single half-day study session, though, so there's not a ton of meat behind it. Then there was another study in Syria, Lyon, where this one included 1,700 students over eight weeks, and then found that if they did AI-supported mathematics instructions, they gained learning equivalents to 1.2 to 1.7 years of typical learning progress. So essentially, they're trying to make the case that actually these tools are good for students. They're going to increase learning outcomes. It's not something to be afraid of. Teachers kind of push back against that notion, though. I feel like this ties into what we were just talking about with the big backlash against tech that we saw in the elections we're seeing Google kind of force people to use AI. And that's exactly what people started pushing back against last night. And now they're saying, look, we can't even untangle search without AI. They are one in the same. Now, no AI means no Google search for you. So I think this will only energize or expand the tech backlash that we saw in the midterms last night when Google just does things like this that maybe they are framing it as we're giving you more options. We're giving you guided learning so that when students don't want to use AI and don't want the answer, we'll have these step-by-step process to help them get the answers. But it just feels tone deaf in the current environment where people feel like AI is being forced upon them, and especially they don't want that for their kids. It just goes back to their dominance, too. I mean, the reason they can do this is because massive, massive school districts say, yes, we do like the fact that you offer cheap Chromebooks to our students. Can you imagine not using Google Docs within your school organization? It just has a stranglehold on these people and these schools. So if they want to get out of that ecosystem, it's just a massive headache for them. So that is why you have people like FTC chair Lena Khan, who loves talking about the dominance Google has over many markets. Now that scrutiny is turned towards its dominance over the education market. Finally, let's sprint to the finish with some final headlines. AI has come for Canva, the Australian design giant that is a favorite of social media. And people designing bachelorette merch announced sweeping layoffs that will affect over 1200 employees or over 20% of its workforce. CEO Melanie Perkins laid the blame on AI saying small changes simply aren't enough to adapt to the new era of AI powered designers. There's two parts to this bow constrictor squeezing Canva. Perkins says AI is making its own employees more productive, meaning it needs fewer of them. More existential though, AI also makes it easier for regular Joes to create designs without actually needing Canva. Neil, these layoffs come not long after Canva was valued at $42 billion and had been eyeing an IPO for years. It seems like that window might be slammed shut now. Perkins called it the hardest moment in our 13 year history. Also thought this was an interesting facet of this reorg. These layoffs is that they're going to move more people to Sydney, Australia, where people will have to work more face to face. Even hybrid staff are going to have to spend two to three days in the office a week starting in January. So this is an upheaval. Next, what if you could watch your favorite movie but have it feel like the first time you're seeing it? A cinema chain in the Netherlands is giving that a shot with the help of a hypnotist. In a psychological experiment slash marketing stunt, the company Pate is recruiting 30 film lovers to watch a movie on Monday, November 9th after meeting the veteran hypnotist Victor Kramer. In two rounds of hypnosis, including a one-on-one online session, Kramer will try to put these moviegoers under a spell that makes them forget the plot of their favorite movie before they enter the theater. The movie shown next Monday will be one of The Matrix 7 La La Land or Interstellar, decided by a group vote. Toby is someone who almost never rewatches a movie because I think it's so much worse after you've seen it once. I find this as thrilling as it is stupid. This movie theater chain, it's a genius marketing stunt, because they have this program called Rewind where they're trying to bring older movies back into theaters so people can re-experience them for the first time. So they just took it to its logical conclusion and said, what if you literally could experience it for the first time via hypnosis? They're not claiming they're wiping anyone's memories, but they are saying that, hey, we might make you forget what's in the box in 7, what happens when you take the red or the blue pill in The Matrix. But the obvious question here is, if you could wipe your memory and rewatch one movie again, what would it be? Neil, I know you have some thoughts on this. Yeah, there are a couple. I mean, the first one that came to mind was probably Whiplash. Whoa. Because, I mean, that's just one of my favorite movies of all time. But I remember thinking that I had no idea what was going to happen next in that movie. It was just so non-cliche from a plot perspective. And there were so many twists and turns. And I just love the whole music aspect of it. So for me, that was thrilling. Some other ones that came to mind were The Prestige, which has this incredible twist at the end. And when you learn that for the first time, then that's it. That is pretty amazing. And also, I was thinking back to the mid-2000s comedies that just really hit for me as a middle schooler. These are not who I thought you were going to say. And I'm thinking like Superbad, Anchorman, I Love You Man, Forgetting Sarah Marshall. Because I think comedies do age over time, right? You don't laugh as hard as you do the first time you've heard the joke. And I just remember being in the theater watching these movies, like keeling over in laughter, watching them for the first time with those jokes. And they just hit at a particular moment in my life. So I think seeing comedies, especially, for the first time, just would be particularly exciting to me. I really thought they were going to be all movies with massive twists in them. So I did not expect- Another twist? Mid-2000s comedies there. God, when I was thinking about this, I realized how basic my theater kind of preferences are. And I thought about Infinity War and Endgame. That was also a pretty peak moment in time where Thanos snaps and everyone goes away. That was exciting. And you were trying to avoid spoilers. That was probably the last time that there was a big- Oh, my God. Big twist that I saw in the movies. But honestly, I was just thinking about, you can see everything. The Elizabeth Holmes documentary, I'm like, I would pay to have my mind erased so I could see that again because of all the twists and turns there as well. But feel free to weigh in. What is the one movie that you would want to watch if you could watch it again? All right. We close out every Wednesday show with Suggestion Box, where Toby and I share a piece of advice to get you over the hump of the week. Toby, hit us with some knowledge. Okay. My recommendation is this photography app. I've been obsessed with called Chromograph. It was made by the director of Knives Out. Is it Rian Johnson or Rain? I think it's Rian. All right. Rian Johnson, a long time alongside his cinematographer, Steve Yedlin. And it takes the same color presets that the pair used for their movies and brings it straight to your iPhone. It does this by bypassing the image processing already built into your iPhone and shoots in raw, then applies the color grading to it. I went to a wedding last weekend on Halloween. in fall spooky vibes and I could not stop snapping. I felt like a celebrity there because I'd take a picture of someone and show it to them. They go, oh my gosh, how did you do that? Now here is the one negative. It is $13 and I can't remember the last time I bought an app, but as I saw these pictures kind of falling on my social media feed, I was like, I'm going to pay for this. I had never paid for something in years, but I can't recommend it enough. You will love the pictures and it'll make you look like an artiste to all your friends. One time, $13 or subscription? One time, $13. It's actually, I think it's like a good- I'd be worth it for a wedding, like an Etsy witch. Right. I think it's a good signal too because think about all the apps are free or they're 99 cents and then here you have one that's $13. It kind of peaks up your interest. You're like, oh, maybe this is worth it and I promise you it is. All right. My rec is a reminder to pick a winter hobby or two. On Monday night, Toby and I were talking about how dark it was at 5 p.m. and both realized it was time to develop some new skills for the colder months. The first thing we're going to do is learn how to knit. Liv, our associate producer and fill-in host, is an excellent knitter and recommended the YouTube video, Knit Your First Sweater from Handmade by Florence as your all-in-one guide to get started. I'll say that again, Knit Your First Sweater from Handmade by Florence. So going to begin there and see where that goes. Other winter hobbies I'm thinking about, finally getting my hands on a sourdough starter and launching a bread empire. In the athletic realm, paddle, P-A-D-E-L, super fun indoor racket sport. And finally, taking- A class. Very underrated thing to do as an adult. It's probably all kinds of them where you live, so pick a topic that interests you and dive in. Good way to get out of the house and meet people too. Oh, taking, like not a, like a pottery class, like a real- Literally anything. Oh, or is it going to be like- It can be a pottery class, it can be a lecture series, it can be a botany class. Go on, keep going. There's so many, especially in New York City, if you look. I'm glad that you used the, that wasn't the royal weave, that was like as you and me are going to start knitting. Well, we actually are, yeah. I really hope- Let's bring it in some materials today. Yeah, I want to see the outputs and let people judge who makes the better sweater. I'm thinking Charlie Brown vibes. You were thinking a more monotone color, but let's get a little confident. You got to apply some competitive juices to the knitting. It can't just be a passive winter hobby, can it? And finally, I want to just mention, like, it's easy to say, it can be vacuous to just say like, oh, start a hobby, right? Like everyone wants to start a hobby, but it's hard. And my philosophy is generally take something, you know you like, and just create an extension of that or go one removed from that. So for paddle, like the racket sport, I know I like tennis, but I can't play tennis in the summer. So this is the winter version of that. I know I like cooking, but why don't I extend or expand on that skill to do something like a little more advanced, like sourdough or bread making. So that's my general philosophy, because if you're going to adopt a hobby that you don't like, like, don't just dive in something cold plunge that you didn't, that you, you don't like because you just won't stick with it. So just take like one degree removed from something, you know, you have a general interest in, and that will maybe help it stick. I know you like running marathons, so start knitting. Perfect. Oh no, we're all done with that. That is all the time we have. Thanks for starting your morning with us. Have a wonderful Wednesday. Come one, come all to the Morning Brew Daily Trivia Night next Tuesday, November 10th in Manhattan. We host these once a month, and they're such a fun way for listeners to meet each other and for us to get to know you as well after breaking your brain, of course. You know, most people say, oh, I don't know, I don't know, I don't know. I'm taller than they expected. That's a lie. Anyway, round up some friends and sign up for free at the link in the show description to share your. thoughts on the episode or anything else, send an email to morningbrewdaily at morningbrew.com or DM us on Instagram at mbdailyshow. Let's roll the credits. Emily Milliron is our supervising producer. Raymond Liu is our senior producer. Our producer is Olivia Graham and our associate producer is Olivia Lake. Technical direction by Nina Miller. Hair and makeup got hypnotized and our show is a production of Morning Brew. Great show today, Neil. Let's run it back tomorrow. Business news today. It's everywhere and it moves fast. But knowing more gives you an edge. From your job to your finances to big life decisions. It is the news shaping the decisions you make every day. So if it matters this much, why is it still so hard to keep up with? Well, that's where Morning Brew's newsletter comes in. And we have one goal. To make business news easy to follow. Think of it like a smart friend explaining the news after they did all the research for you. And the best part? Our newsletter is completely free. So head on over to morningbrew.com slash subscribe and see why over 4 million people start their day with Morning Brew.

Podcast Summary

Key Points:

  1. LinkedIn ads offer the highest ROAS among major ad networks and are recommended for investors seeking strong returns.
  2. A significant political shift occurred in the U.S. midterms, with Democrats flipping key Senate and House seats, including in Texas and Kansas, signaling a major backlash against GOP policies.
  3. Public opposition to AI data centers grew sharply, with 56% of voters citing them as a crucial factor in their decisions, leading to 41 local moratoria and impacting tech investment and expansion.
  4. Elon Musk’s $224 million investment in Texas races failed to yield results, and he now faces increased scrutiny over Starlink and AI-related operations.
  5. Regulatory scrutiny is rising against tech giants like Google and Alphabet, with new antitrust and educational policies expected under the new Democratic leadership.
  6. Google’s push to integrate AI into public schools has sparked backlash, with critics accusing it of monopolistic leverage and forcing AI adoption through search dependency.
  7. AI disruption is affecting even design giants like Canva, which announced layoffs and shifted to in-person work as AI enables cheaper, non-expert design.
  8. A bold marketing stunt in the Netherlands uses hypnosis to allow viewers to "reexperience" movies for the first time, sparking debate on memory, nostalgia, and AI-driven entertainment.

Summary:

S. midterm elections delivered a sweeping political shift, with Democrats gaining control of both chambers of Congress, flipping key states like Texas and Kansas, and triggering a major backlash against AI-driven data centers and tech monopolies. Voters cited AI and data centers as a crucial factor in their decisions, leading to widespread local restrictions and a significant political rebuke of tech companies.

This shift has intensified scrutiny on major players like Elon Musk, Google, and Alphabet, with Musk facing heightened scrutiny over his investments and Starlink, and Google facing accusations of monopolistic control in education through its Chromebook and search ecosystem. Meanwhile, AI is disrupting industries: Canva laid off over 1200 employees and shifted to in-person work, while a Dutch cinema chain uses hypnosis to let viewers relive movies, sparking debate on memory and entertainment. Investment strategies are shifting toward platforms like LinkedIn ads, which offer high ROAS.

The broader tech sector faces regulatory pressure, with antitrust concerns rising and the stock market showing resilience despite short-term volatility. These developments reflect a growing public skepticism toward AI and corporate influence, especially in education and public policy.

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Democrats flipped deep red areas that had previously supported Trump, including Texas and Kansas, marking a significant political shift and gaining control of both the House and Senate.

A significant 56% of voters cited AI and data centers as a crucial or major factor in their voting decisions, leading to widespread local opposition and 41 data center moratoria across the U.S.

Elon Musk invested $224 million in Texas races but saw little return, and his influence is now under scrutiny as Democrats take control and investigate his role in Ukraine and data center policies.

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