Tech Brew Ride Home – Episode Summary

Episode Title: Algorithmic Pricing?
Date: December 10, 2025
Host: Brian McCullough

Overview

This episode covers a range of breaking tech stories, with a primary focus on the rise of algorithmic pricing, increased transparency in social media algorithms, and how AI expansion is reshaping adjacent industries. Highlights include Instagram’s new “Your Algorithm” feature, the discovery of dynamic pricing on Instacart, a possible SpaceX mega-IPO, DeepSeek’s efforts to circumvent chip bans, and Boom Aerospace’s pivot to power AI data centers with jet engine tech.

Key Discussion Points & Insights

1. Instagram Unveils “Your Algorithm” for Reels

[01:55]

• Main Point: Instagram is launching a feature that shows users an AI-powered analysis of their activity, allowing them to customize the recommended topics in Reels.
• Details:
  • Users can now see a list of their top recent interests as determined by generative AI.
  • Instagram allows direct user input on what topics to see more or less.
  • The feature is rolling out first in the US, with global English-language expansion coming.
  • Instagram and TikTok are both vying for younger users—Instagram leads in adoption (80% of US adults under 30 use Instagram vs. 63% for TikTok).
• Notable Moment:
  • Host humorously shares personal top Reels interests: “My top interests on reels right now are a stand up set Gianmarco Soresi did at a furry convention and decadent grilled cheese sandwiches so damn gooey.” [03:28]

2. Instacart & Algorithmic Pricing: Are Your Groceries Being Dynamically Priced?

[04:07]

• Main Point: New study reveals Instacart users in the same city—and shopping at the same store—were charged different prices for the same items at the same time.
• Study Background: Organized by Groundwork Collaborative and Consumer Reports, surveyed nearly 200 volunteers across four cities, checking 20 grocery items each.
• Findings:
  • Items like Skippy Peanut Butter and Cheerios saw up to $0.60 price differences at the same store and time.
  • Instacart claimed stores set prices and may run “pricing tests” to learn about consumer preferences.
  • Target distanced itself, saying it’s not responsible for Instacart’s prices.
• Expert Take:
  • Harvard economist Alberto Cavallo: “Prices are definitely more flexible across categories than they were 10 to 15 years ago, and that has to do with the rise of E commerce and these technologies that have allowed firms over time to react more quickly.” [06:18]
• Impact:
  • Traditional concept of a single, fixed price eroding.
  • Algorithmic pricing has spread from sectors like air travel to groceries, restaurants, and retail.
  • Contributes to more volatile, unpredictable—and sometimes higher—prices.
  • Grocery prices up 25% over five years, a key political concern.
• Quote, Lindsay Owens (Groundwork Collaborative):
  • “Shoppers who are buying the exact same item from the exact same store at the exact same time are getting different prices... The data really backs up how extraordinarily pervasive this is.” [05:39]

3. SpaceX Eyes a $1.5 Trillion IPO

[07:37]

• Main Point: Sources say SpaceX is prepping for an IPO in mid-to-late 2026, aiming for a historic $1.5 trillion valuation.
• Financial Context:
  • Expected to raise far above $30 billion, a record-breaking public offering.
  • Revenue projections: $15B in 2025, $22–24B in 2026, mainly from Starlink’s direct-to-mobile services.
  • Funds will help finance space-based data centers, aligning with Musk's vision.
• Insider Quote from the “Invest Like the Best” Podcast, Gavin Baker:

  “In every way, data centers in space from a first principles perspective are superior to data centers on Earth. In space you can keep a satellite in the sun 24 hours a day... The sun is 30% more intense which results in 6 times more irrad than on earth, so you don't need a battery. The cooling in these data centers is incredibly complicated. Space cooling is free... The only thing faster than a laser going through a fiber optic cable is a laser going through absolute vacuum. Link satellites with lasers and you have a faster and more coherent network than any data center on Earth.” [09:28]

• Industry Implications:
  • Data centers in space are increasingly discussed as tech companies seek efficiency and speed for AI workloads.

4. DeepSeek Smuggles Nvidia Chips to Compete in the AI Race

[12:04]

• Main Point: Chinese AI firm DeepSeek allegedly used third-party channels to acquire thousands of Nvidia Blackwell chips, sidestepping US export bans.
• Why This Matters:
  • Highlights the difficulty of enforcing chip export controls amid globalized semiconductor supply chains.
  • Despite China’s push for homegrown AI chips, imports are still preferred for cutting-edge AI model training.
• DeepSeek’s Model Development:
  • Uses “sparse attention” technique, activating only relevant parts of a model—a method that Blackwell chips accelerate.
  • This approach cuts costs but complicates scaling to bigger models, slowing progress.
• Release Roadmap:
  • Released experimental v3.2Exp model as a stepping stone; next-gen delayed, possibly out by mid-February 2026 (Lunar New Year).
  • Founder Liang Wen Feng is not setting a hard launch deadline.
• Industry Insight:
  • “Deepseek's focus on the sparse attention technique has made its model development more challenging and time consuming...” [13:30]

5. Boom Aerospace’s “Superpower” Side Hustle: Powering AI Data Centers

[14:20]

• Main Point: Boom Aerospace, known for building supersonic planes, is repurposing its jet engine technology into stationary turbines for data center power—entering the lucrative AI energy supply chain.
• Deal Details:
  • First customer, Crusoe, will purchase 29 turbines worth $1.25 billion, powering 1.21 GW for data centers.
  • Boom’s “Superpower” turbine shares 80% of parts with its airborne Symphony engine.
  • Production scaling: 1 GW in 2028, 2 GW in 2029, 4 GW in 2030.
• Funding:
  • Raised $300 million from major VCs to commercialize Superpower.
• CEO Blake Scholl’s Rationale:
  “I’ve kind of been keeping my eyes open for 10 years for what could be our Starlink ... I said no to a thousand things because I concluded they were distractions. This one we’re saying yes to because it’s so clearly on path.” [15:33]
• Industry Analysis:
  • Power plants are priced higher than comparable turbines, but the demand for AI data centers justifies it.
  • Quoting the Odd Lots newsletter (attributed to Joe):

    “It’s worth noting how this is yet another example of how some key industrial input, which was originally envisioned for something else, is plugging itself into the AI supply chain... All that being said, it seems like an unalloyed good thing if AI investment helps accelerate the development of jet engine technology... Still, it’s worth thinking about this general phenomenon by which capacity—industrial, electric, labor, et cetera—is increasingly being shifted to this one project of building out AI tech.” [17:45]

• Memorable Moment:
  • “Every VC emailing their portfolio companies today, did you see this? Have you thought about how our Tinder for Dogs product might be used by data centers?” — Deva Hazarika on X [18:51]

Notable Quotes

• Host’s Personal Algorithm:
  “My top interests on reels right now are a stand up set Gianmarco Soresi did at a furry convention and decadent grilled cheese sandwiches so damn gooey.” [03:28]
• On Algorithmic Pricing:
  “Shoppers who are buying the exact same item from the exact same store at the exact same time are getting different prices... The data really backs up how extraordinarily pervasive this is.” — Lindsay Owens, Groundwork Collaborative [05:39] “Prices are definitely more flexible across categories than they were 10 to 15 years ago, and that has to do with the rise of E commerce and these technologies that have allowed firms over time to react more quickly.” — Alberto Cavallo, Harvard economist [06:18]
• On Data Centers in Space:
  “In every way, data centers in space from a first principles perspective are superior to data centers on Earth. ... The only thing faster than a laser going through a fiber optic cable is a laser going through absolute vacuum.” — Gavin Baker [09:28]
• On Industrial Inputs for AI:
  “It’s worth noting how this is yet another example of how some key industrial input, which was originally envisioned for something else, is plugging itself into the AI supply chain.” — Odd Lots newsletter [17:45]
• On the Trend-Following VC Mentality:
  “Every VC emailing their portfolio companies today, did you see this? Have you thought about how our Tinder for Dogs product might be used by data centers?” — Deva Hazarika on X [18:51]

Timestamps for Major Segments

• [01:55] Instagram’s new “Your Algorithm” feature
• [04:07] Instacart and the rise of algorithmic pricing (with example price discrepancies)
• [07:37] SpaceX’s $1.5 trillion IPO plans and the case for data centers in space
• [12:04] DeepSeek’s Nvidia chip acquisition and AI development strategy in China
• [14:20] Boom Aerospace pivots to power AI data centers with jet turbines

Episode Tone

Casual, witty, and fast-paced reporting with plenty of industry references, insider commentary, and an undercurrent of cautious skepticism about tech hype cycles—especially in the AI and data infrastructure spaces.

This summary delivers a thorough overview of the podcast episode, capturing both the substance and the style for listeners and non-listeners alike.