Peter Tchir, Academy Securities — November 15, 2026
Last weekend we went with A Lot To Digest. Not only are markets trying to figure out the economic and market outlook post midterm elections, but we also had software outages, a nationwide ground stop, and the CEO of one of the most important companies in the world resign.
Chinese Compute
Our week was meant to start at 5 a.m. on CNBC on Monday to discuss a variety of macro and geopolitical issues. But, with news breaking that the CEO confirmed a relationship (with someone alleged to be a Chinese spy), we got pushed to later in the show. Though, of course, the first question in our segment was still about Jensen. On Thursday we went on Bloomberg TV knowing full well that we would be talking about the developing situation around Jensen. I think we handled the subject well under the circumstances. Academy continues to be at the forefront of examining the National Security issues surrounding the compute build-out.
We have highlighted the threat (to the economy and market valuations) of Cheap Chinese Compute and China’s willingness to “distill” their models on existing models to reduce time and cost in training. We are comparing the risk to other periods where China grew to dominate industries (from basic manufacturing, to large swaths of global telecom, to the processing and refining of rare earths and c
