{"id":303,"date":"2026-11-09T17:21:23","date_gmt":"2026-11-09T17:21:23","guid":{"rendered":"https:\/\/instabox-d.sheep-mine.ts.net\/index.php\/on-thecube-pod-midterms-send-shockwaves-through-ai-market-siliconangle\/"},"modified":"2026-11-09T17:21:23","modified_gmt":"2026-11-09T17:21:23","slug":"on-thecube-pod-midterms-send-shockwaves-through-ai-market-siliconangle","status":"publish","type":"post","link":"https:\/\/instabox-d.sheep-mine.ts.net\/index.php\/on-thecube-pod-midterms-send-shockwaves-through-ai-market-siliconangle\/","title":{"rendered":"On theCUBE Pod: Midterms send shockwaves through AI market – SiliconANGLE"},"content":{"rendered":"
\"On<\/div>\n

The very blue results of last week\u2019s midterms have sent technology investors into a tailspin.
\nWith many successful candidates running on platforms opposing data centers and calling for greater restrictions on artificial intelligence, investors anticipate a slowdown in AI spending. Tech stocks fell, with a collective loss of $2.5 trillion in market cap, and the Nasdaq dropped more than 5.5%.
\n\u201cYesterday was a bloodbath,\u201d said John Furrier (pictured), executive analyst for theCUBE Research. \u201cIt was brutal here and the tech stocks got pounded. 41 states had data centers on the ballot. They all lost or won, depending how you look at it. Now it\u2019s so mainstream, it\u2019s a political football. So you\u2019re starting to see the reality of AI. It\u2019s hitting everybody. Everyone is impacted.\u201d
\nOn the latest episode of theCUBE Pod, Furrier and Dave Vellante (pictured, right), chief analyst for theCUBE Research, discussed the fallout from the midterms and whether or not AI companies will really suffer in the long term. They also explored who will own the \u201csystem of intelligence\u201d that will govern enterprise AI.
\nMidterms puts AI investors on shaky ground
\nAfter the \u201cbloodbath\u201d last week, the question remains: Can enterprise AI pay for the boom? Despite the shockwaves from the midterms, theCUBE\u2019s researchers are predicting a longer path toward monetization. A recent analysis identified 2029 as the highest-risk year for the AI bubble.
\n\u201cThere\u2019s a clock in terms of the data center monetization and financing and how long it takes to build data centers,\u201d Vellante said. \u201cWe know anybody who can sell GPUs is making money but the enterprises aren\u2019t yet self-funding. I had said that by 2026, this year, you\u2019re going to start to see clear evidence of monetization in the enterprise. I think you see it, but you\u2019re seeing it within tech companies.\u201d
\nTech companies are applying AI more effectively, according to Vellante, which should not come as a surprise. He thinks the tech titans are in a solid position while neoclouds are taking on a greater share of risk by pioneering a new software model, although not all of them will make it in the long term.
\nA GPU-based AI economy will shift in the next several years, Furrier believes, which could lead to surprising winners and losers.
\n\u201cSupermicro [Inc.], good numbers, [Advanced Micro Devices Inc., Arista Networks, Marvell Technology Inc.],\u201d he noted. \u201cMy take is this: the infrastructure is evolving beyond GPU-centric computing. Networking, optics, memory, storage, power efficiency. System-level architecture is becoming the strategic advantage, and those bottlenecks are being solved by the companies I just mentioned. You saw the news that Marvell closed a $115 billion acquisition of Lumentum.\u201d
\nThe stock market plunge shows that not everyone is going to make it through the AI era\u2019s eventual slowdown. Public opinion on data centers is mixed, to say the least, so companies will need to establish a foothold in the developing system of AI intelligence to remain competitive.
\n\u201cNeoclouds like CoreWeave are going to make it through,\u201d Vellante said. \u201cThey\u2019re the first movers and they\u2019ve got some quality advantages but they\u2019re going to go through some pain. Hyperscalers are like an ATM. They could dial it down at any point in time \u2026 but right now it\u2019s all about growth, it\u2019s about footprint, it\u2019s about market share.\u201d
\nPredicting the AI era\u2019s winners
\nWho owns the \u201csystem of intelligence\u201d? This layer, which will bridge the gap between intelligent agents and the data systems they depend on, appears to still be in play. Palantir Technologies Inc. has the ontology that could give it the edge, while Snowflake Inc. and Databricks Inc. are still developing the operational systems \u2014 though Vellante sees the latter as having one of the best strategies.
\n\u201cYou need determinism to own that system of intelligence,\u201d Vellante said. \u201cSo I think it\u2019s wide open. Right now, I think Ali Ghodsi [chief executive officer of Databricks] has the best vision. He\u2019s going after the client surface, he\u2019s going after the system of intelligence, he\u2019s going after the governance catalog, he\u2019s going after the agent action layer, and he\u2019s partnering \u2026 with all the frontier model vendors. Whether or not they can pull it off, we\u2019ll see.\u201d
\nFrontier models are the \u201cwild card,\u201d as Vellante puts it, but at the moment, all the tech companies are trying to get a slice of the pie. Despite the recent market shakeups, Furrier sees AI-native enterprises as the ultimate result of this current period of growth.
\n\u201cThe AI-native enterprise or businesses is going to be the model,\u201d Furrier said. \u201cEverybody wins in that one. Compute providers, hyperscalers, the data platforms that are on the right side, and the application companies, which are basically going to be agentic. That\u2019s going to be the winners on the profit concentration. The control point \u2026 it\u2019s not going to be the models, it\u2019s going to be data and context, and the agents will be the proof point.\u201d
\nWatch the full podcast below to find out why these industry pros were mentioned:
\nTom Lee, investor and entrepreneurDan Ives, technology analystFrank Slootman, former chairman of the board of directors at Snowflake Inc.Ali Ghodsi, co-founder and chief executive officer of DatabricksJohn Roese, global CTO and chief AI officer of Dell TechnologiesLisa Su, chair and CEO of AMDMichael Dell, chairman and CEO of Dell TechnologiesGeorge Gilbert, principal analyst at theCUBE ResearchGeoffrey Moore, principal at Geoffrey Moore ConsultingRob Hof, editor-in-chief at SiliconANGLE MediaStu Miniman, senior director of market insights, hybrid platforms, at Red Hat
\nHere\u2019s the full episode of this week\u2019s theCUBE Pod:<\/p>\n

Photo: SiliconANGLE<\/p>\n

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SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios \u2014 with flagship locations in Silicon Valley and the New York Stock Exchange \u2014 SiliconANGLE Media operates at the intersection of media, technology and AI.<\/p>\n

Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.<\/p>\n\n
Source credits: <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The very blue results of last week\u2019s midterms have sent technology investors into a tailspin. With many successful candidates running on platforms opposing data centers and calling for greater restrictions on artificial intelligence, investors anticipate a slowdown in AI spending. Tech stocks fell, with a collective loss of $2.5 trillion in market cap, and the Nasdaq dropped more than 5.5%. … <\/p>\n

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