Alphabet vs Amazon

Apollo Warns Hyperscaler Debt Risk Rising

In a Wednesday note, Apollo Global Management's chief economist Torsten Slok warned that credit default swaps (CDS) tied to hyperscaler bonds are signaling increasing credit risk, with the spread between hyperscaler and bank CDS widening to around 60 basis points from near zero since October 2025. Slok attributes this to a debt-financed AI capex cycle with rising leverage, negative free cash flow, and uncertain payback on depreciating assets. The warning follows calls from frontier model leaders to slow AI advancement due to safety concerns, which could impact cloud providers. While some technology investors like Paul Meeks of Freedom Capital Markets see improving margins, economists like Dean Baker of CEPR note that sophisticated CDS investors are attaching greater risk to the debt of the most profitable companies, suggesting substantial risk in AI investments.

• Apollo Global Management warned that hyperscaler credit default swaps are rising, indicating increasing credit risk.
• The gap between hyperscaler CDS and bank CDS widened to ~60 basis points from ~0 since October 2025.
• Apollo's chief economist Torsten Slok attributes the repricing to debt-financed AI capex with rising leverage and negative free cash flow.

Santoli: AI's Youthful Phase Over, Investors Face New Reality

CNBC's Mike Santoli argues that the 'youthful phase' of AI investing, characterized by unlimited promise and easy winners, is over. Semiconductor stocks have fallen 20% from June highs, and the S&P 500 tech sector's forward P/E has contracted from 29 to 21. The narrative has shifted from opportunity to risk, with public sentiment turning against AI and concerns about data center overbuilding. However, the purge of speculative excess may reset sentiment and prevent a 1999-style bubble. The article draws parallels to the late-1990s tech boom, noting Fed rate hikes and rising Treasury yields. A potential silver lining is that a slowdown could allow major AI capex spenders like Microsoft, Alphabet, and Meta to consolidate before further investment. The market is rewarding companies with strong free cash flow, as seen in the VictoryShares Free Cash Flow ETF's outperformance.

• Semiconductor shares are 20% off their June highs as of the article's date.
• The S&P 500 tech sector's forward P/E has contracted from 29 to 21 over the past year.
• The Federal Reserve is poised to begin lifting interest rates.

Tesla Cybercabs in New York Have Steering Wheel, Person

Tesla's Cybercabs have been spotted in New York City with steering wheels and safety drivers, despite the company's plan for fully autonomous, steering-wheel-free robotaxis. The local news outlet Gothamist reported the sightings, and New York's transportation authorities acknowledged Tesla is testing a 'supervised' autonomous driving system. Fully driverless robotaxi services are not permitted in New York, and commercial autonomous taxi operations are currently banned. Tesla has not commented on the matter, and reports suggest the company may be using the New York deployment to collect data. This follows Waymo's own challenges in the city, where its testing permit expired and a limited robotaxi service approval was revoked in early 2026.

• Tesla Cybercabs with steering wheels and safety drivers have been sighted in New York City.
• New York's transport authority confirmed Tesla is testing a 'supervised' autonomous system.
• Fully driverless robotaxi services and commercial autonomous taxi operations are not allowed in New York City.

Publishers, Build Your Own SSP!

This article proposes that publishers build their own white-label SSP to unlock direct relationships with bidders and DSPs, increasing revenue and control. By integrating an additional SSP path via OpenRTB, publishers can generate more impressions and optimize their existing ad stack, similar to header bidding. The article details technical considerations such as QPS, ads.txt, and sellers.json, and highlights the potential for cost transparency and reduced fragmentation. It also suggests using the publisher-SSP to review reseller paths and manage data sharing. Ultimately, the approach enables publishers to become more active participants in the ecosystem, working directly with DSPs like The Trade Desk's OpenPath initiative.

• Publishers can build a white-label SSP to create direct connections with bidders and DSPs.
• White-label SSPs operate via OpenRTB and integrate into the existing ad stack.
• The article identifies Prebid, Amazon TAM, and Google Open Bidding as common connection options.

Amazon Raises Minimum Starting Pay to $20/hour and Launches New Benefits

Amazon raises minimum starting pay for full-time core operations employees to $20/hour, with average pay reaching nearly $24/hour, and launches grocery discount and access to new lifetime banking benefits to make everyday life more affordable.

Amazon Raises Minimum Starting Pay for Full-Time Core Operations Employees to $20/Hour

Amazon raises minimum starting pay for full-time core operations employees to $20/hour, with average pay reaching nearly $24/hour, and launches grocery discount and access to new lifetime banking benefits to make everyday life more affordable.