Democrats Win Big in Historic Rebuke of AI & Dutch Cinema Hypnotizes Moviegoers
· Summarized
Key takeaways
- The hosts argued that opposition to AI data centers became a major electoral force: 56% of voters called the issue a crucial or major factor, and 41 local moratoria were expected to reject data centers.
- Democratic control of Congress alongside a Republican president was presented as likely gridlock, which the hosts said markets generally favor; the S&P 500 has risen in the year after all 19 midterm elections since 1950.
- Google’s proposed school AI opt-out would also remove Google Search because the company says the two services are deeply integrated, prompting accusations from Zoran Mamdani and Lina Khan that Google is coercing schools.
- Canva attributed more than 1,200 layoffs to AI both because it increases employee productivity and because it lets users create designs without needing Canva.
- For a durable winter hobby, Neil recommended building one degree away from an existing interest rather than choosing an unrelated activity from scratch.
Summary
“Mogging” becomes Collins Dictionary’s word of the year
Neil Freiman and Toby Howell opened by joking about election-night “mogging,” then explained that Collins Dictionary named “mogging” its word of the year. The term began in bodybuilding culture in 2016 and entered mainstream usage as meaning to outperform or outshine someone or something. They compared it with Dictionary.com’s “maxing” and joked that Neil no longer has to explain internet slang such as “clavicular,” “mid jester,” or “gooning” to his wife’s friends because Collins now provides a reference.
Democrats’ projected sweep turns AI data centers into a political liability
The hosts described the midterm results as a blue wave becoming a “blue tsunami,” with Democrats projected to win 55 Senate seats, at least 258 House seats, and governorships in states including Texas, Georgia, Ohio, and Pennsylvania. Toby said those victories put roughly half of proposed U.S. AI data-center additions at risk of stricter local rules; Texas alone represents nearly 30% of capacity expected online by 2028. Exit polls found AI and data centers were crucial for 23% of voters and crucial or major factors for 56%; 41 local moratoria were reportedly headed toward a 0–41 result.
Tech executives and companies face investigations after the election
Neil and Toby said technology’s political spending failed to deliver: Marc Andreessen and Ben Horowitz contributed more than $115 million, Greg Brockman directed about $50 million mainly to Republican campaigns, and Elon Musk spent $224 million on Texas races. They expected Democratic control to bring hearings and subpoenas for executives who supported Trump, including OpenAI CEO Sam Altman. Musk joked that his “election interfering space lasers” failed and said data centers in space looked appealing. The hosts also predicted renewed antitrust scrutiny for Paramount’s merger and Alphabet, plus a boom in law firms’ “murder board” preparation for congressional hearings.
Markets initially sell off, then rally on expected gridlock
The hosts said futures briefly fell as the results came in, with Nasdaq futures down as much as 2.5% and Asian AI-related stocks also selling off, before reversing after Trump appeared to accept the results and investors bought the dip. They argued that a Republican president and Democratic Congress could create gridlock that markets view as certainty, limiting Trump’s deficit-expanding agenda. They cited the S&P 500’s record of finishing higher in the 12 months after every midterm election since 1950—19 out of 19 times. Defense stocks could suffer from spending pressure, healthcare could benefit from Medicaid changes, and banks could be hurt by bipartisan support for a 10% credit-card interest cap.
Ballot measures produce wins and losses for tech, gambling, and foie gras
The California billionaire wealth tax, Proposition 40, appeared unlikely to pass, with Kalshi assigning it only a 4% chance that morning, giving tech billionaires one potential win. Nebraska voters rejected online sports betting measures despite more than $20 million from DraftKings and FanDuel. Washington, D.C., and Denver appeared poised to ban foie gras sales or production. In Idaho, voters were choosing a state gun; the Winchester Model 1873 lever-action rifle, known as “the gun that won the West,” led in unofficial results.
Google’s school AI opt-out would also remove Google Search
Google said it would turn off its AI tools by default in schools next year, but its vice president for education, Chris Phillips, said Search and AI are so integrated that schools banning AI would lose Google Search too. The hosts called this a “scholastic Faustian bargain,” noting Google’s leverage through Chromebooks, Workspace, and Google Classroom. Zoran Mamdani and former FTC chair Lina Khan accused Google of using search dominance to coerce schools into AI adoption. Google cited studies supporting AI learning tools, including an 8.1-point versus 5.3-point learning gain in a University of Tokyo trial and 1.2–1.7 years of equivalent progress in an eight-week, 1,700-student mathematics study in Syria.
Canva blames AI for more than 1,200 layoffs
Australian design company Canva announced layoffs affecting more than 1,200 employees, or over 20% of its workforce. CEO Melanie Perkins called the cuts the hardest moment in Canva’s 13-year history and said small changes were insufficient for the AI era. The hosts identified two pressures: AI makes Canva’s remaining employees more productive, while also allowing ordinary users to create designs without the platform. The cuts followed Canva’s $42 billion valuation and long-running IPO ambitions; the company will also move more staff toward Sydney and require hybrid employees to work in the office two or three days weekly.
A Dutch cinema will use hypnosis to recreate a first viewing
Dutch cinema chain Pathé is recruiting 30 film fans for a November 9 experiment in which hypnotist Victor Kramer will conduct two sessions, including an individual online session, intended to make participants forget the plot of a favorite film. The group will vote among The Matrix, La La Land, and Interstellar. Toby called it a clever promotion for Pathé’s Rewind program, which returns older films to theaters, while Neil said he would choose Whiplash, The Prestige, or a mid-2000s comedy such as Superbad. Toby considered Infinity War, Endgame, and the Elizabeth Holmes documentary.
The hosts recommend winter hobbies that extend existing interests
Toby recommended Chromograph, a $13 one-time iPhone photography app created by Knives Out director Rian Johnson and cinematographer Steve Yedlin. It shoots RAW images and applies the pair’s film color presets; Toby said its wedding photos impressed everyone who saw them. Neil recommended choosing one or two winter hobbies, starting with the YouTube guide “Knit Your First Sweater” from Handmade by Florence. He also suggested sourdough, indoor paddle, or an adult class, arguing that hobbies stick better when they extend something already enjoyed—such as paddle for a tennis player or breadmaking for someone who likes cooking.
Sponsors
- LinkedIn Ads · The hosts said LinkedIn Ads generate the highest ROAS of all major ad networks and let advertisers target buyers by company, industry, job title, and more. New advertisers who spend $250 on their first campaign receive a $250 credit; terms and conditions apply.
- Runway · Runway’s creative suite lets individuals and teams generate, edit, and finish video, images, and audio for marketing and social content. Runway Agent can use information about a project, product, audience, or campaign to develop concepts, ads, variants, and localized creative. The ad offered free signup and 25% off paid plans with code MORNINGBREW.
- Rubrik · Rubrik was presented as an agentic cyber-resilience platform covering a company’s data, identities, and AI systems, allowing businesses to move quickly while staying secure.
- Global X Artificial Intelligence and Technology ETF (AIQ) · AIQ was described as a way to invest across the AI ecosystem, including software platforms, semiconductor designers, and cloud infrastructure providers. It tracks the INDXX Artificial Intelligence in Big Data Index and is intended to provide exposure to AI’s broader evolution rather than only headline companies.
Show notes
#969: The expected “Blue Wave” turned into a Blue tsunami as Democrats flipped Senate seats in Red states. AI data center stocks tumble following the Democrats big win in key data center hubs. Now, many are expecting a tech backlash following the midterm election results. Finally, US stock futures fell as final results came in but ticked back up as investors assess their outlook for AI. In other news, Google pulls back its AI products from schools but also means it could pullback Search.
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