Welcome to the Techonomy Barista, here’s today’s top stories - fresh from my neural networks to yours. 🧠 

Today’s top stories:

1. Perplexity announces its own browser, takes direct shot at Google.

2. Ranking AI startups’ valuations - OpenAI to Anthropic to Perplexity.

3. Rich people more important than ever for the U.S economy.

4. Apple's $500B U.S. investment: new spending or business as usual?

5. AI’s fleeting supremacy show Game of Thrones in real life.

6. The decline of white-collar job security.

Market Pulse

🗓️ Economic Calendar

🔥 Top Stories

1. 🌌 Perplexity announces launch of Comet: A new AI-powered web browser

⏳ The deets in 30 seconds

• Perplexity AI announced a new web browser, Comet, taking a direct shot at Google Chrome.

  • Comet is designed for "agentic search", aiming to redefine how users browse the web.

• Features include intelligent search, task execution, autonomous decision-making, and enhanced privacy.

• Perplexity, valued at $9B, has opened a waitlist for early access.

• Puts Perplexity in direct competition with Chrome, Edge, Safari, and other major browsers.

💡 How it impacts you

• AI-powered browsing could mean smarter, automated workflows while searching and navigating online.

• If Comet delivers on privacy promises, it could be an alternative to data-hungry browsers like Chrome.

• Expect deeper AI integrations into web interactions, making browsing more like a conversational experience.

• Web developers and SEO strategists might need to adapt to AI-driven search behaviors.

🔮 Industry prediction

Product distribution is key and Perplexity understands this - they’re taking on Google head-on as they aim to eat its marketshare.

With great product design and a growing user base, they want to now capitalize on building an ecosystem to future-proof themselves.

Who's Moving:

• 🏃‍♂️ Leading: Perplexity, Arc Browser, Brave (privacy-focused AI integration).

• 🚶‍♀️ Following: OpenAI, Google, Microsoft

• ⌛ Waiting: Apple (Safari AI?), Mozilla (Firefox lagging in AI adoption).

What's Next:

• Now: Perplexity tests Comet with early users.

• 6 Months: AI-driven browser competition intensifies, with more players integrating smart assistants.

• 1 Year: AI browsing redefines search and workflow automation, with Chrome and Edge racing to catch up.

⚡ The bottom line

Perplexity's Comet is aiming to disrupt web browsing—think AI copilots navigating the internet for you, while Google and Microsoft scramble to keep up.

2. Ranking AI startups' valuations, from Anthropic to Perplexity 🤖

Changing revenue multiples of top AI companies

⏳ The deets in 30 seconds:

• OpenAI and Anthropic have seen valuation multiples drop as revenue surges.

• Startups like Perplexity and Writer are holding onto high revenue multiples.

  • Perplexity hit $80M ARR, a 60% jump since November, with a 170X revenue multiple.

• Industry-specific AI startups (e.g., Abridge in healthcare) see some of the highest multiples.

  • Harvey, a legal AI startup, saw its multiple fall from 64X to 54X ARR.

• OpenAI’s latest valuation: $260B (43X revenue multiple), down from 54X last year.

💡 Why it matters:

• AI investment landscape is shifting—startups with real revenue growth are being prioritized.

• Enterprise adoption is fueling valuations, as businesses spend on AI for productivity gains.

• Sector-specific AI startups in healthcare, law, and finance are getting premium valuations.

• Consumer-facing AI startups like Perplexity are proving rapid growth can justify high multiples.

• Large AI firms are seeing multiples drop, reflecting revenue catching up to hype.

🔮 Industry prediction:

AI startups are the new SaaS darlings—hyper-growth AI apps will keep commanding wild valuations, but foundation models will see multiples normalize.

Who's Moving:

• 🏃‍♀️ Leading: OpenAI, Anthropic, Perplexity, Glean.

• 🚶‍♀️ Following: Harvey, Writer, Abridge.

• ⌛ Waiting: Smaller AI app startups still proving revenue growth.

What's Next:

• Now: AI apps continue seeing massive ARR growth and sky-high valuations.

• 6 Months: More AI startups specialize in industry-specific solutions for stickier revenue.

• 1 Year: Foundation model players (OpenAI, Anthropic) see multiples drop as revenue scales.

⚡ The bottom line:

AI apps are the new gold rush—Perplexity’s 170X multiple shows investors still have FOMO, but OpenAI and Anthropic are settling into SaaS-like valuations.

3. The U.S. economy depends more than ever on rich people 💰

⏳ The deets in 30 seconds:

• The top 10% of earners in US now account for 49.7% of all spending, up from 36% in 1989.

  • Their wealth surged by $35T since 2019, fueled by stocks and real estate gains.

  • Their spending increased 12% YoY (Sept 2023-2024), while middle and lower earners cut back.

• A downturn in asset values or consumer confidence could hit the economy hard.

• Luxury spending is soaring—high-end travel, designer goods, and premium experiences.

• Meanwhile, mass-market retailers struggle—Kohl’s, Family Dollar, and Big Lots are closing stores.

💡 Why it matters:

• The economy is fragile—if the rich cut back, recession risks rise.

• Middle-class spending power is shrinking, with wages not keeping up with inflation.

• Wealth gap widens—asset owners benefit, renters and lower-income earners struggle.

• Luxury industries thrive, while budget-focused businesses battle for fewer dollars.

• Stock and real estate markets matter more than ever—their performance dictates economic growth.

🔮 Industry prediction:

The U.S. economy is playing a high-stakes game of Jenga—pull out the rich, and the whole tower wobbles.

Key Players:

• 🎯 Driving Growth: Delta Air Lines, Royal Caribbean, LVMH, Bank of America

• ⚡ Feeling the Heat: Kohl’s, Big Lots, Family Dollar

• 👥 Worth Watching: Discount retailers, budget airlines, mid-tier restaurants

Timeline:

• Q2: Wealthy consumer confidence holds, luxury spending remains strong.

• 2H 2024: Stock market volatility could shake spending habits.

• 2025: If interest rates stay high, expect a slowdown in high-end discretionary spending.

⚡ The bottom line:

The rich are spending like it’s a bull market, but if their wallets tighten, the economy could fall like a house of cards.

4. Apple's $500B U.S. investment: new spending or business as usual? 🍎 

Expenses and capital expenditures per fiscal year ended September

⏳ The deets in 30 seconds:

• Apple plans to spend $500B in the U.S. over the next four years.

  • Includes domestic suppliers, a new server manufacturing facility, and a Detroit training center for manufacturers.

• Past spending patterns suggest this is not entirely new money.

• Spent $1.1T over the last four years, and projections align with this continued trend.

• Political timing is key—Trump already thanked Apple CEO Tim Cook publicly.

• Analysts doubt Apple will find $500B in truly new investment, given high stock buybacks.

💡 How it impacts you:

• Apple Intelligence is coming—server manufacturing signals AI is a major priority.

• Job creation potential—Detroit facility could boost U.S. manufacturing jobs.

• No major shift in Apple pricing—this isn’t a major capital expansion, so don’t expect cost hikes.

• Stockholders take note—Apple is balancing investment with stock buybacks, affecting long-term value.

• U.S.-China tension still at play—Apple’s diversification hints at a long-term manufacturing shift.

🔮 Industry prediction:

Apple’s AI push is like a slow-cooked brisket—low heat, long prep, but expect a flavorful market shake-up by 2026.

Who's Moving:

• 🏃‍♀️ Leading: Apple, Microsoft (AI hardware expansion), Tesla (U.S. manufacturing)

• 🏣 Following: Google, Meta, Amazon (AI infrastructure growth)

• ⌛ Waiting: Samsung, Intel, Qualcomm (still ramping up domestic investments)

What's Next:

• Now: Apple commits to U.S. investment, political goodwill builds.

• 6 Months: AI infrastructure expansion details emerge.

• 1 Year: Tangible job and manufacturing impact starts surfacing.

⚡ The bottom line:

Apple’s $500B U.S. investment sounds flashy, but it’s mostly business as usual with a political bow on top.

5. Another AI king, another pretender to the throne 👑 

⏳ The deets in 30 seconds:

• Anthropic's Claude 3.7 Sonnet drops—faster, cheaper, and offers hybrid reasoning (quick vs deep responses).

• Outpaces OpenAI's split models (GPT-4o vs GPT-4o-1), but OpenAI is working on adaptive intelligence.

• Claude Code debuts—a coding assistant that reads, edits, writes, and commits code.

• Best coding AI yet, but deeper workflow integration could disrupt partners using Claude.

• AI supremacy is fleeting—rumors of GPT-4.5 dropping soon prove no model stays king for long.

💡 Why it matters:

• AI model fatigue—breakthroughs come fast, today’s best is tomorrow’s baseline.

• Coding workflows evolve—Claude Code may challenge GitHub Copilot.

• Cheaper, better AI—businesses and users benefit from lower costs.

• More flexibility—hybrid reasoning improves AI user experience.

• No permanent leader—AI models upgrade fast, forcing constant adaptation.

🔮 Industry prediction:

AI’s a Game of Thrones—short-lived reigns, constant challengers.

Who's Moving:

• 🏃‍♀️ Leading: Anthropic, OpenAI, Google DeepMind

• 🧖‍♂️ Following: Mistral, Meta, xAI

• ⌛ Waiting: Cohere, Apple, smaller labs

What's Next:

• Now: Claude 3.7 leads with hybrid reasoning and coding upgrades.

• 6 Months: OpenAI & Google launch adaptive intelligence models.

• 1 Year: AI shifts from generation to autonomous execution.

⚡ The bottom line:

The battle for the AI throne never ends— Anthropic rules today, but GPT-4.5 looms. AI dominance is rented, not won.

6. 📉 The decline of white-collar job security

⏳️ The deets in 30 seconds:

• Advanced-degree holders are facing record-high unemployment.

  • Median jobless spells hitting 18 weeks—4X longer than two years ago.

• Highly educated professionals now struggle twice as long as those without college degrees to find work.

• Remote work, AI, and skills-based hiring are devaluing traditional credentials, making experience more valuable than degrees.

• Corporate layoffs in tech and finance have hit knowledge workers hardest, causing many to reconsider the value of higher education.

• AI advancements are accelerating job displacement, disproportionately impacting white-collar roles.

  • Some professionals hide their advanced degrees to avoid being labeled as overqualified.

💡 How it impacts you:

• Job searches for master's and Ph.D. holders are taking months longer.

• Employers now prioritize skills over credentials.

• Remote hiring has globalized competition, pushing wages down for U.S. professionals in traditionally high-paying roles.

• AI is replacing knowledge workers faster than expected, making adaptability and ongoing learning essential.

• Graduate degrees no longer guarantee job security, forcing many to pivot into new fields or take lower-paying roles.

🔮 Industry prediction:

Degrees are losing their golden ticket status—future job security will hinge on adaptability, practical skills, and AI fluency, not diplomas.

Key Players:

• 🎯 Leading the Shift: Tech giants (Google, IBM) pushing skills-based hiring

• ⚡ Making Moves: AI startups automating knowledge work

• 👥 Worth Watching: Higher education institutions struggling to adapt

Timeline:

• Now: Layoffs, long job searches for degree holders

• 6 Months: More companies drop degree requirements

• 1 Year: AI reshapes white-collar hiring entirely

⚡ The bottom line:

An MBA used to be a career cheat code—now, it’s more like a pricey DLC pack that doesn’t guarantee a win.

💫 Mind Candy

🗞️ Speed Reads

🤖 AI & Tech

OpenAI expands Operator's global access, automating browser tasks in Australia, Canada, India, and most places where ChatGPT is available.

Google adds file support for Gemini.

Microsoft cancel AI data center leases, sparking speculation of its AI infrastructure strategy.

OpenAI researchers admit that even the most advanced AI models are no match for human coders.

EdTech company’s lawsuit against Google says AI overviews erode the Internet.

💼 Startup & Business

Anthropic nears $3.5B funding roughly tripling valuation to $61.5B.

Starbucks to lay off 1,100 corporate workers due to drop in sales.

Amazon revenue surpasses Walmart in quarterly sales for the first time.

Snowflake CEO says a weekly war room is behind its recent resurgence.

🇺🇸 U.S Politics

Trump backs Musk in Federal workforce shakeup.

Firings at US agencies warn of further trim down in government workforce.

🌏️ Global Affairs (non-US)

Xi may be the biggest threat to global economy, warns former Treasury official.

Chancellor-in-waiting, Merz, prioritizes Ukraine and US, vows to tackle migration and economy after German election win.

Inflation picks up in Japan, UK and Canada.

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