(Before we get started — I know many of you are salivating for the Jensen Tea. You can find that below, in the Final Sip section of the newsletter).

This week’s brew is about the great AI reality check.

Nearly $2.5 trillion was wiped off the Nasdaq last week. Americans voted against data centers. Anthropic’s anticipated IPO valuation got slashed. And even OpenAI raised billions lower than expected.

My tea? We’re witnessing a collision between traditional financial frameworks and the economics of an entirely new technological era.

Wall Street wants predictable returns, disciplined spending, and clear paths to profitability.

Silicon Valley is spending historical money building infrastructure for a future it believes is inevitable and infinitely profitable.

And both sides have a point.

The spending is astronomical. The political backlash is real. And the returns remain uncertain.

But in my opinion, Wall Street is undervaluing the one critical factor that’s not going away: AI demand.

AI adoption is accelerating, enterprise utilization is skyrocketing, and the race for compute only hastens.

So here’s my question: Is the AI bubble actually about to burst, or is Wall Street trying to value the next technological revolution using yesteryear’s playbook?

Maybe they should run it through AI.

Something to brew on. ☕️