Tech Brew Ride Home – "The Pivot To AI Datacenters"
Date: December 16, 2025
Host: Brad McCullough
Episode Overview
This episode of Tech Brew Ride Home covers a significant inflection point in the tech industry as companies and countries pivot toward AI and datacenters. Brad McCullough unpacks how international trade relations are straining over digital policy, examines recent downturns in AI infrastructure stocks, and explores how major corporations—like Ford—are shifting strategies to align with the AI datacenter boom. The episode wraps with a deep dive into Hollywood’s growing rift over generative AI.
Key Discussion Points & Insights
1. US-UK Tech Deal on Hold Over Policy Disputes (03:04–06:50)
- The US has paused a recently signed tech-related trade deal with the UK.
- Reasons: American concerns over Britain's slow progress on reducing trade barriers, issues with the UK's online safety rules, and the digital services tax.
- Quote (05:00):
“America’s biggest tech companies announced more than $40 billion in investments in Britain for AI, data centers, and other technologies… But the language in the tech deal… said it only ‘becomes operative alongside substantive progress’ being made to formalize and implement the May trade agreement.” – Brad McCullough
- Specific sticking points include digital services taxes (mostly affecting US firms like Amazon and Google) and unresolved agricultural agreements.
- Highlights the ongoing use of trade policy as leverage for digital and AI policy concessions.
2. The "Second Mini Tech Recession" of 2025 – AI Infrastructure Stocks Slide (06:51–13:00)
- Shares of Broadcom, CoreWeave, and Oracle—all tied to the AI infrastructure buildout—have declined sharply.
- Despite strong annual gains, market unease grows over the long-term ROI of massive AI investments.
- Quote (08:01):
“It definitely requires the ROI to be there to keep funding this AI investment... From what we’ve seen so far, that ROI is there... every single AI company… is saying if you give me more compute, I can make more revenue.” – Matt Witteiler, Wellington Management, via CNBC
- Quote (08:01):
- Investors reacted negatively to large increases in capital spending and debt, especially at Oracle:
- Oracle to ramp up capex to $50B (from $35B) to fund new datacenter contracts with Meta, Nvidia, and others.
- Lease commitments exploded by 148% in just a quarter.
- Broadcom expects to double quarterly AI chip sales to $8.2B, but gross margins are set to shrink.
- CoreWeave’s heavy reliance on debt (>120% debt/equity ratio) and limited customer base (mainly OpenAI, Microsoft, Meta) put it in a risky position, leading to a sharp $33B drop in valuation over construction delays.
- Quote (12:10):
“CoreWeave’s business model involves using high-interest debt to buy thousands of advanced AI chips from Nvidia, installing them in data centers… then renting access… as capital spending on AI intensifies.” – Brad McCullough
- Construction setbacks, miscommunication from CEO Michael Intrater, and a rapid correction by CFO Nitin Agrawal compounded investor anxiety.
- Quote (12:10):
3. Ford Pivots from EVs to Data Center Battery Storage (15:30–18:40)
- Amidst financial trouble in EVs, Ford exits certain electric vehicle lines (e.g., electric F150) and redirects battery manufacturing to enter the battery energy storage market.
- Capacity will be repurposed to produce lithium iron phosphate (LFP) batteries for datacenters and grid storage.
- Ford’s new business aims for commercial scale, targeting 20 Gigawatt annual capacity with $2B investment over two years.
- Joins a trend among automakers (e.g., Tesla, GM) moving into “batteries as infrastructure” for the AI compute boom.
- Quote (17:44):
“Ford says the battery storage systems will start shipping in 2027… The predominant opportunity will be commercial grid customers, but data centers will be secondary.” – Brad McCullough, paraphrasing Lisa Drake (Ford)
4. Hollywood’s Civil War Over Generative AI (18:41–end)
- Explores growing tensions in the film industry as generative AI tools become more capable.
- Two camps emerging:
- Deeply opposed: Directors & creatives (e.g., Guillermo del Toro: “I’d rather die than use the technology in my films.” [19:30])
- Exploratory but wary: Studios quietly investing (e.g., Disney’s $1B stake in OpenAI; using Sora), while navigating labor and legal uncertainty.
- Labor contracts (writers, actors) up for renewal in 2026, with past strikes heavily motivated by AI fears.
- Issues go beyond creative roles:
- Animation, VFX, and makeup jobs at immediate risk.
- Legal ambiguities persist regarding digital likenesses, with agents and lawyers racing to secure rights and contract provisions.
- Quote (21:44):
“AI means someone can recreate your voice, your face, your movement, your cadence, your entire persona from past performances…” – Kevin Yorn, entertainment lawyer (speaking about Scarlett Johansson’s legal battle)
- Despite caution, some stars (e.g., Matthew McConaughey) are monetizing AI replicas of their voices via startups like Elevenlabs.
- Quote (23:00):
“AI isn’t a theoretical thing. It’s already embedded in how Hollywood is operating now.” – Kevin Yorn
Notable Quotes & Memorable Moments
- 05:00 – “The language in the tech deal… only ‘becomes operative alongside substantive progress being made’”—on the conditional nature of US-UK AI collaboration.
- 08:01 – “The bullish side is that every single AI company… is saying: ‘If you give me more compute, I can make more revenue.’” – Matt Witteiler, Wellington Management
- 12:10 – “CoreWeave’s business model involves using high-interest debt… renting access… as capital spending on AI intensifies.”
- 17:44 – “Ford says the battery storage systems will start shipping in 2027… The predominant opportunity will be commercial grid customers, but data centers will be secondary.” – Lisa Drake, Ford
- 19:30 – “I’d rather die than use the technology in my films.” – Guillermo del Toro on AI
- 21:44 – “AI means someone can recreate your voice, your face, your movement… your entire persona…” – Kevin Yorn, entertainment lawyer
- 23:00 – “AI isn’t a theoretical thing. It’s already embedded in how Hollywood is operating now.” – Kevin Yorn
Key Timestamps
- 03:04 – US pauses tech trade deal with UK
- 06:51 – AI infrastructure stocks’ slide
- 08:01 – Matt Witteiler on AI investment ROI
- 12:10 – CoreWeave’s financial risks and CEO/CFO discord
- 15:30 – Ford’s pivot to data center battery storage
- 17:44 – Lisa Drake on Ford’s battery storage strategy
- 18:41 – Hollywood’s growing AI schism
- 19:30 – Guillermo del Toro quote on generative AI
- 21:44 – Kevin Yorn on digital rights and AI threats
- 23:00 – The reality of AI adoption in Hollywood
Tone and Style
Brad maintains a fast-paced, information-dense narrative style, aimed at listeners who want a sharp, up-to-the-minute summary of the day’s most impactful tech stories delivered with a mix of pragmatic insight and light, personal commentary.
Summary
In this episode, Tech Brew Ride Home dives into how global politics and market risks are reshaping the AI infrastructure landscape and forcing unexpected pivots—from Ford’s batteries to Hollywood’s creative and labor standoffs. The overall message: the AI gold rush isn’t over, but it’s already reshaping industry strategies, stoking anxiety, and spurring new alliances and conflicts on both sides of the Atlantic.