The Week The Week
flag of US
US
flag of UK
UK
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

SUBSCRIBE & SAVE

Less than $3 per week

Sign in
  • View Profile
  • Sign out
  • The Explainer
  • Talking Points
  • The Week Recommends
  • Newsletters
  • Cartoons
  • From the Magazine
  • The Week Junior
  • More
    • Politics
    • World News
    • Business
    • Health
    • Science
    • Food & Drink
    • Travel
    • Culture
    • History
    • Personal Finance
    • Puzzles
    • Photos
    • The Blend
    • All Categories
  • Newsletter sign up Newsletter
  • The Week Evening Review
    Economic reliance on AI, Elon Musk's new pay package, and wildlife at the border

     
    TODAY'S BIG QUESTION

    How is AI reshaping the economy?

    Artificial intelligence is reshaping the American economy, but something more is also happening: Increasingly, it is the economy. That might not be a good thing.

    "Big Tech is becoming an even more important part of American prosperity," said The Washington Post. Google, Meta, Amazon and Microsoft are collectively "on track to spend more than $350 billion" building AI centers. That spending is large enough to be a "countervailing force" to a U.S. economy that appears to be "decelerating" under the weight of President Donald Trump's tariff and immigration policies. But that growth has also raised concerns among economists who believe that a healthy economy has a diverse range of activities. 

    What did the commentators say?
    A "small number" of tech companies are now "spending more than the 340 million American consumers" who have traditionally been the engine of U.S. economic growth, said Axios. The downside: Tech has always been a "cyclical" sector that booms and busts, and many of today's AI industry leaders "never lived through those cycles."

    The AI sector is "so big it's propping up the U.S. economy," said Brian Merchant at his Blood in the Machine Substack. Apple became the first $1 trillion company in 2018. Now "there are nine $1 trillion+ tech companies" with much of that growth happening "on the back of the AI boom." And over the last six months, tech spending on AI infrastructure "added more to the growth of the U.S. economy than all consumer spending combined." If AI is undergirding the economy, "what happens if the AI stool does get kicked out from under it all?"

    All that tech sector spending on data centers is "draining American corporations of cash," said Greg Ip at The Wall Street Journal. But while AI has "obvious economic potential," the actual payoff "remains a question mark." If tech companies prove over-optimistic, "their current pace of capital spending will be hard to sustain."

    What next?
    Wall Street is happy with tech companies for now, but the "urgency to show a payback from generative AI spending will only intensify," said Richard Waters at the Financial Times. Big Tech "may not have all the answers" about how the technology will be used. Instead, they are investing massively in the belief that "they are best placed to figure it out."

     
     
    QUOTE OF THE DAY

    'I don't trust anybody. I'm not friends with anybody. That's why I've got four dogs.'

    Far-right activist Laura Loomer speaking about her life in an interview with The New York Times. Controversial for her often racist and Islamophobic views, she has become a close friend of Trump's and has reportedly had a direct influence on several White House hirings and firings. 

     
     
    IN THE SPOTLIGHT

    Tesla's $29 billion Musk-centric gamble

    Elon Musk's unprecedented wealth is in large part tied up in Tesla, the electric vehicle manufacturer he has positioned at the center of his sprawling business empire. But Musk's dependence on Tesla as his primary earnings engine is a two-way street, particularly as the car company scrambles to hold its mercurial CEO's attention amid sliding sales and a slumping reputation.

    Tesla's two-person Special Committee of the Board of Directors announced plans this week to award Musk millions of shares of company stock, worth up to $30 billion, because he has "not received meaningful compensation" at the company for years. "Retaining" Musk at Tesla, the committee said, is "more important than ever."

    An 'astounding' pay package
    The award is a "first step, 'good faith' payment" to Musk, said Tesla board members Robyn Denholm and Kathleen Wilson-Thompson in a company filing. Musk's previous compensation package, estimated at $50 billion, has been tied up in Delaware courts since it was first announced in 2018. The new package offers Musk "roughly 3% of the company," said The New York Times. It's an "astounding figure," but still far below Tesla's nearly $1 trillion market capitalization. Nevertheless, the package would likely "outstrip most or all pay packages for CEOs at publicly traded companies," said The Wall Street Journal.

    This new compensation package will be "forfeited" if Musk and Tesla prevail in Delaware courts and are allowed to exercise the 2018 deal, said CNBC. The package is scheduled to vest in two years, so long as Musk remains Tesla's CEO "or in another key executive position."

    'Crucial pivot'
    The Tesla board is focused on "keeping the billionaire entrepreneur at the helm" of the company amid a "crucial pivot from its struggling core auto business" to Musk's long-promised rollout of "robotaxis and humanoid robots," Reuters said. Tesla has faced sagging sales lately, "wrought by its aging vehicle line-up, tough competition," and "Musk's political stances" that have "alienated some potential buyers."

    Company stakeholders have been "growing weary" of Musk's "forays into politics at the expense of their earnings," said The Daily Beast. The new tranche of shares is "thought to be an effort to ease this tension." And unlike Musk's 2018 compensation package, this proposal "does not appear to be tied to goals like increasing the company's stock price," said TechCrunch.

     
     

    Statistic of the day

    60%: The percentage of global liver cancer cases that are preventable, according to research from the Lancet Commission. The scientific review recommends several ways to reduce risk factors, including wider distribution of hepatitis B vaccines and health policies that target obesity and alcoholism.

     
     
    the explainer

    Wildlife in the border crosshairs

    When Trump introduced a resurrected plan for his U.S.-Mexico border wall almost immediately after retaking office, some experts expressed concern that it could affect more than just the people in that region. A new report claims that Trump's plan for a 25-mile stretch of wall in Arizona could have a devastating impact on the area's wildlife, much of which is already endangered or threatened.

    How could the border's wildlife be affected?
    The wildlife in question lives in Arizona's San Rafael Valley, a mountainous region along the southern border. At least 17 endangered or threatened species have been photographed in the valley, which is also home to the "highest number of modern jaguar detections anywhere in the U.S.," said the Center for Biological Diversity. The valley currently has only low wire fencing that allows animals to pass through. Building a wall in the area "would block species movement, destroy protected habitats and inflict irreversible damage on critical ecological linkages." 

    A border wall "modifies the whole ecosystem around that community," Dr. Ganesh Marin, a biologist who studies wildlife movement with Conservation Science Partners, said to The New York Times. Beyond restricting movement, a border wall "could also cause smaller prey animals to avoid the area," resulting in "cascading negative effects."

    What is being done about this?
    U.S. Customs and Border Patrol is soliciting bids for the wall's construction, with the Department of Homeland Security's press release notably not mentioning plans for the area's wildlife. There have been some efforts by outside groups to try to halt the administration's plans.

    The Center for Biological Diversity is "suing to stop further construction of the border wall in Arizona," saying the construction is "unconstitutional by pushing aside 30 laws passed by Congress," said KOLD-TV Tucson. If the wall is completed, it "will destroy the border's last remaining significant wildlife corridor," the center said in its initial court filing.

    "It's a physical barrier" that would harm the wildlife but not stop immigration, Valerie Gordon, an American conservationist in the region, said to The Arizona Republic. "It's an emotional barrier. It's a pointless barrier."

     
     

    Good day 🏭

    … for old power plants. A slew of aging coal and gas power plants across Europe are being repurposed as data centers, according to Reuters. They are being taken over by tech companies and converted into new centers to help generate power and provide an alternative to shutting the plants down.

     
     

    Bad day 🥐

    … for tourists in Paris. The French capital has been deemed the world's most stressful city to visit, according to research from the rental agency Ibiza Summer Villas. The city crams more than 47 million annual visitors into just 40 square miles, making it even denser than New York City.

     
     
    Picture of the day

    Grains of hope

    Palestinian women search the sand for grains of rice or legumes in Nuseirat refugee camp in the Gaza Strip. The UN World Food Program says 500,000 people in Gaza — nearly a quarter of the population — are facing famine-like conditions. Meanwhile, global outrage over images of emaciated children is increasing pressure on Israel to allow more aid into the region.
    Eyad Baba / AFP via Getty Images

     
     
    Puzzles

    Daily crossword

    Test your general knowledge with The Week's daily crossword, part of our puzzles section, which also includes sudoku and codewords

    Play here

     
     
    The Week recommends

    Movies that breathed new life into old TV shows

    Studios, lured by the promise of a built-in audience, have produced films based on both short-lived, obscure series with cult followings as well as blockbuster hits that ran for years. Out of the hundreds of such films, only a handful managed to stay true to the essence of the source material while still offering viewers an original, compelling vision.

    'Monty Python's Life of Brian' (1979)
    The enduring influence of the pioneering British sketch comedy series "Monty Python's Flying Circus" (1969-1974) on popular culture can't be overstated. The series also led to several films, the best of which was "Monty Python's Life of Brian." The movie is the "foulest-spoken biblical epic ever made," said The New York Times.

    'Star Trek III: The Search for Spock' (1984)
    "The Search For Spock" (pictured above) is an emotionally rich movie. Spock portrayer Leonard Nimoy also directs, and his vision helps "capture the essence of the series more than any of the other cinematic efforts," making the film the "most faithful (and therefore the most enjoyable) of the first half dozen excursions," said Slant Magazine.

    'Twin Peaks: Fire Walk with Me' (1992)
    After David Lynch's critically acclaimed surrealist whodunnit "Twin Peaks" was canceled on a cliffhanger after two seasons, he directed a prequel that hit theaters just one year later. The reception was brutal, but that assessment has since been reappraised. The film should now be considered "not just an artistic triumph in its own right" but also the "key to the entire Twin Peaks universe," said The Guardian.

    Read more

     
     

    Poll watch

    Almost three-quarters of Americans (73%) have been victims of online scams like credit card fraud or ransomware, according to a Pew Research Center survey. The poll of 9,397 adults found that 68% receive scam phone calls on at least a weekly basis. 

     
     
    INSTANT OPINION

    Today's best commentary

    'Discriminating against DACA students'
    The Wall Street Journal editorial board
    The Education Department is "harassing colleges that provide scholarships to young people who came to the country illegally as children," says The Wall Street Journal editorial board. Many "Dreamers have no memory of or ties to their home countries," and "most couldn't afford tuition at these schools without scholarships." Denying "Dreamers an opportunity to learn and advance in society doesn't help anyone." This is "one more way of punishing Dreamers because their parents crossed illegally into the U.S. decades ago."

    'The conviction of Colombia's ex-president is a sign of hope amid autocracy's rise'
    Maria McFarland Sánchez-Moreno at The Guardian
    Former Colombian President Álvaro Uribe was "convicted of bribing a witness who had linked him to the paramilitaries," and the "fact that it has happened at all is a striking development that would have seemed almost inconceivable a decade or so ago," says Maria McFarland Sánchez-Moreno. In a "time of rising autocracy and abuse, including in the U.S., it also offers reasons for hope." No matter "how much power leaders may amass, they are not ultimately above the law."

    'The unspoken etiquette of mourning on social media'
    Alessandra Schade at Time
    As "social media reshapes how we share — and grieve — there are many for whom public mourning still feels gauche, even offensive," says Alessandra Schade. Grieving online "offers catharsis and connection. Engaging with a deceased person's profile can help sustain a bond beyond the grave." But "every post, photo or story risks transgressing invisible social landmines of what is and isn't acceptable." Conversations "around death are returning to the public square."

     
     
    WORD OF THE DAY

    rosorange

    A blend of rosé and orange wine that has become a summer trend. "It's intriguing to see a wine hybrid trying to reconcile these two arguably very different wine styles and the customers they want to attract," said The Guardian. 

     
     

    Evening Review was written and edited by Nadia Croes, David Faris,  Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Joel Mathis, Summer Meza, Rafi Schwartz and Anahi Valenzuela, with illustrations by Stephen Kelly and Julia Wytrazek.

    Image credits, from top: Illustration by Stephen Kelly / Shutterstock / Getty Images; Alain Jocard / AFP via Getty Images; Illustration by Stephen Kelly / Shutterstock / Getty Images; Sunset Boulevard / Getty Images
     

    Recent editions

    • Morning Report

      Trump's tariffs kick in

    • Evening Review

      The state of the economy

    • Morning Report

      RFK Jr. comes for mRNA vaccines

    VIEW ALL
    TheWeek
    • About Us
    • Contact Future's experts
    • Terms and Conditions
    • Privacy Policy
    • Cookie Policy
    • Advertise With Us

    The Week is part of Future US Inc, an international media group and leading digital publisher. Visit our corporate site.

    © Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY 10036.