Studio Ghibli is Melting GPU's

& Data Centre Bubble in US & China

March 31, 2025

How America’s Stock Market became a Global Powerhouse

Foreign investors hold a record slice of America’s $93 trillion stock market — and might not let go anytime soon. As of Q4 2024, overseas investors owned $16.5 trillion, or 18%, of US equities, the highest share on record, according to Federal Reserve data. That’s up from 8% in 2000 and just 2% in the 1950s. As globalization gripped the world, the American stock market became the go-to investment for trillions of dollars of capital.

Researchers from Goldman Sachs, led by David Kostin, outlined in a note published Friday why they believe foreign investors will keep buying. They argued that the US market’s size and liquidity — the S&P 500 is 4x the size of Europe’s STOXX 600 and 8x bigger than China’s CSI 300 — makes it impossible to ignore for global investors looking to invest large sums.

Furthermore, though slowing growth has become a concern on Wall Street, Goldman still expects S&P 500 earnings to grow 7% annually in 2025 and 2026, outpacing Europe’s 4% and 6% growth in the same period. They also observed that a weakening US dollar — which makes US stocks cheaper for overseas buyers — could support buying: the bank expects global investors to pour another $300 billion into US equities this year, roughly matching last year’s inflows.

AI Data Center Bubble: Overbuilt Capacity in US and China Markets

The global race to build AI data centers has resulted in significant overcapacity in both the United States and China, raising concerns about a potential industry bubble. In the U.S., Microsoft has canceled over 2 gigawatts of planned data center projects across the country and Europe, citing oversupply relative to current demand forecasts. Analysts from TD Cowen attribute this retrenchment to soaring energy costs, GPU shortages, and a slowdown in AI workloads from partners like OpenAI. Despite pledging $80 billion in AI infrastructure investments for 2025, Microsoft’s pullbacks signal a shift toward optimizing existing facilities rather than expanding capacity indiscriminately. Other hyperscalers like Google and Meta have stepped in to claim some of the abandoned leases, but fears of stranded assets persist as the market recalibrates.

In China, the situation is even more pronounced, with 30-40% of newly built AI data centers sitting idle due to weak enterprise adoption and speculative construction fueled by government subsidies. Alibaba Chairman Joe Tsai has warned of a bubble forming in the sector, highlighting the risks of building facilities without confirmed uptake agreements. Between 2023 and 2024, over 500 new data center projects were announced across China, but many are now underutilized or technically unsuitable for current AI applications. The glut of unused infrastructure has led to falling profits and distressed assets, with experts predicting government intervention to consolidate operations. Both markets reflect the risks of overestimating AI demand, as companies grapple with balancing rapid technological advancements against practical economic realities.

Ghibli-Gate: OpenAI Pulls Free Image Generator After Viral Ghibli Art Flood

Studio Ghibli: It is a Japanese animation studio based in Koganei, Tokyo founded by Hayao Miyazaki in 1985 and is among the more financially successful animation directors in the industry.

OpenAI launched its upgraded image generation feature (powered by GPT-4o) which caught a user frenzy creating images in the iconic style of Studio Ghibli; but the company has since pulled the feature from the free tier. Sam Altman tweeting that “our GPUs are melting” points towards how users went overboard with the trend. Users flooded social media with Ghibli-fied versions of everything from "The Godfather" to internet memes.

While paid subscribers still have access, OpenAI has not provided a timeline for when the feature will return to the free tier. The company's swift decision suggests a cautious approach to the complex issues surrounding AI-generated art and intellectual property rights. While style isn't typically protected by copyright, OpenAI appears to be reevaluating its strategy in light of the unexpected popularity of Ghibli-inspired AI art and the ethical implications of replicating human creativity.

Perplexity’s AI Shopping Revolution: Seamless Commerce

AI search engine Perplexity is redefining online shopping with innovative features like Buy with Pro, enabling Pro subscribers to purchase products directly within the platform using saved payment details. This one-click checkout option includes free shipping and eliminates the need to visit merchant websites for supported products. For items not available via Buy with Pro, users are redirected to complete transactions externally. Other features include Snap to Shop, which allows users to search for products by uploading photos, and AI-generated product cards that display pricing, reviews, and summaries for all users.

To further enhance its shopping experience, Perplexity has partnered with Seattle-based startup Firmly.ai, which specializes in enabling e-commerce transactions directly within digital content and apps. Firmly’s technology supports Perplexity’s vision of “buy-anywhere” experiences, allowing brands to sell seamlessly through the platform while retaining all revenue from purchases. With these tools, Perplexity aims to challenge established players like Google and Amazon in the AI-driven shopping space, leveraging partnerships with platforms like Shopify and expanding its merchant program to boost visibility for sellers.