
Written by a model from the transcript; not yet reviewed.
The episode unpacks the aftermath of the midterm elections, focusing on the unexpected Democratic majorities in the House and Senate and the local voter pushback against AI data center development. The discussion examines how former policies, tariffs, and tech industry friction influenced voter sentiment, leading to a temporary market correction. The conversation also explores recent artificial intelligence licensing deals, shifting token spending caps at major technology firms, and various personal recommendations, ranging from upcoming cinematic releases to streaming television series.
The hosts open the episode, introduce the topic of the midterms and data centers, and present the Stripe Startups sponsorship message.
The hosts discuss the Democratic victories in the House and Senate and the impact on AI and data center policy.
The hosts analyze Trump’s support for data centers, how it became a partisan wedge, and the implications for the midterms.
They predict a rebound in data center investment after the midterms and discuss potential regulatory changes in Texas.
The hosts review OpenAI’s new data center commitments and compare them to Meta, Microsoft, Google, and Anthropic’s plans.
The conversation turns to Anthropic’s AP licensing deal, fair‑use debates, and broader legal risks for AI companies.
Discussion of Apple’s new limits on engineering teams’ daily AI usage and its implications for the company’s AI strategy.
Exploration of token usage costs, SaaS subscription models, and the future pricing of AI services.
Speculation about Apple’s ability to run local AI models on its hardware and the impact on the AI ecosystem.
Conversation about the political leanings of tech leaders after the midterms and how that may influence corporate culture.
Detailed discussion of margin loans, capital gains, and tax planning for wealthy individuals.
Hosts share their favorite recent films, including Godzilla sequels and a Korean monster movie.
Midterm Results Impact AI Infrastructuredata
Democrats secured majorities in the House and Senate, while voters in multiple states acted locally to restrict new data center construction and AI development.
Market Correction on Tech and Datainsight
The day after the midterms saw a five to six percent correction in tech and data center stocks as political realities set in for investors.
Benefits of a Split Governmentinsight
A split government provides essential checks and balances, which can prevent extreme regulatory shifts and stabilize the broader business environment.
Local Compromises for Data Centersstrategy
New state leadership is expected to mandate that data centers pay local taxes, guarantee clean water, and maintain stable consumer electricity prices.
Anthropic Secures AP Content Dealdata
Anthropic struck its first content licensing deal with the Associated Press to provide up-to-the-minute election coverage for Claude users.
Apple Cuts Engineering AI Spendingdata
Apple reduced daily AI spending caps for its engineering teams from three hundred dollars down to two hundred dollars, with further reductions planned.
“I would give Donald Trump like an A to A+ uh, in his handling of it. Like, just flawless. Absolutely.”
“Texas Governor-elect Gino Inoosa campaigned on pausing construction until the legislature passes new regulations, per The Wall Street Journal.”
“The war is going to wrap up. And we can't have Iran having a nuclear bomb.”
“You have to have the strength of your own convictions. You also have to have a process, Lon, for getting to the truth.”
“Apple lowered the daily AI spending cap for its engineering teams for $300 to $200. More cuts are in the works. Some allowances falling to $100 a day.”
“I think the flat rate is designed to get you addicted to it. It gets you to move up the scale.”
This Week In Startups is made possible by: Odoo: https://Odoo.com/twist Sentry: https://sentry.io/twist Stripe: https://stripe.com/startups Plaud: https://Plaud.ai/twist Today’s show: Democrats swept the midterms, and a lot of their candidates ran explicitly against AI data centers. Then on Thursday, the Nasdaq fell 5%. But fear not: Jason says the panic is overblown. Back in August, he predicted that the anti-data center rhetoric on the campaign trail would transform into cutting a deal once the voters were counted. On TWiST, Jason and Lon discuss the route to compromise that could define the next year of AI discourse. Find out why Jason still gives President Trump an A+ on AI, even as he lost touch with the country’s mood on other issues. Plus we’re checking out some highlights from the archive, as the show followed the decline of Trump 2.0 in real time, and Jason explains his simple method for staying informed and in touch with everyday reality. (Talk to lots of different people!) Plus: OpenAI’s post-election pledge, Anthropic’s first content licensing deal, Apple cuts engineer AI budgets, Lon’s latest This Week in AI demo, and the guys get mega-hyped for “Godzilla Minus Zero.” Relevant Links Voters rebuff data centers in every ballot measure except one (CNBC): https://www.cnbc.com/2026/11/04/data-center-ballot-measures-2026-midterm.html Hinojosa's call for a data center moratorium until the legislature acts (campaign): https://ginafortexas.com/2026/07/new-hinojosa-calls-on-greg-abbott-to-put-moratorium-on-data-centers-until-a-legislative-session-that-puts-texans-first/ Talarico defeats Ken Paxton (Texas Tribune): https://www.texastribune.org/2026/11/03/texas-ken-paxton-james-talarico-us-senate-elections-2026/ Microsoft pulls out of its UK data center deal with Nscale (Computing): https://computing.co.uk/news/2026/ai/microsoft-exits-nscale-deal-ipo-at-risk Gavin Baker on TX data center rules: https://x.com/GavinSBaker/status/2118420042283102604 California's billionaire tax (Prop 40) goes down (Bloomberg): https://www.bloomberg.com/news/articles/2026-11-05/california-voters-poised-to-reject-first-ever-billionaire-tax TWiST E2113 w/ Steven Borrelli of Cuts: https://www.youtube.com/watch?v=_qxDoJvzSiY TWiST E2332 w/ Jason’s data center prediction: https://www.youtube.com/watch?v=ojSmG6xHCdI OpenAI pledges to pay for its data centers' power and halt NDAs (CNBC): https://www.cnbc.com/2026/11/05/openai-to-pay-for-data-center-power-after-election-shows-ai-concern.html Anthropic strikes its first licensing deal, with the AP, for election coverage (Adweek): https://www.adweek.com/media/anthropic-licensing-deal-ap-election/ The New York Times v. OpenAI discovery fight (Bloomberg Law): https://news.bloomberglaw.com/ip-law/new-york-times-wants-access-to-top-openai-executives-documents Apple's first touchscreen MacBook Pro, from $2,899 (Tom's Guide): https://www.tomsguide.com/computing/macbooks/apple-reveals-oled-touchscreen-macbook-pro Lon’s Plaud demo post: https://www.thisweekinai.ai/p/record-your-ideas-with-plaud-then Plaud MCP for ChatGPT and Claude: https://in.plaud.ai/blogs/news/plaud-mcp-for-chatgpt-and-claude Terry Black's Barbecue: https://terryblacksbbq.com P. Terry's: https://www.pterrys.com Torchy's Tacos: https://torchystacos.com Velvet Taco: https://www.velvettaco.com ”Godzilla Minus Zero” trailer: https://www.youtube.com/watch?v=Pu0pH5BuCPM “Hope” trailer: https://www.youtube.com/watch?v=mYRc2Gl7geY “Dark Matter” Season 2 trailer: https://www.youtube.com/watch?v=zhB6_1UbR7s “House of the Dragon” Season 3 trailer: https://www.youtube.com/watch?v=0JlMjgqduVw Timestamps: 0:00 Jason’s initial take on the Blue Wave 6:40 The data center pause was about appeasing voters 10:55 Odoo - The all-in-one business platform. Your first app is free! Get started today at https://Odoo.com/twist 11:56 Corruption, Iran, and the cost of living brought down Republicans 16:18 How the Cuts CEO shifted Jason’s tariff take 21:12 Sentry - New users can get $240 in free credits when they go to https://sentry.io/twist and use the code TWIST26 29:06 Plaud - If your work depends on conversations - interviews, meetings, calls - you need a Plaud NotePin S. You can check it out at https://Plaud.ai/twist and use code TWIST for 10% off! 29:15 Lon’s Plaud Agent demo 33:40 Stripe - Stripe Startups offers early-stage, venture-backed startups access to Stripe fee credits and more. Apply today on https://stripe.com/startups. 34:48 Leadership is repetition 40:19 Why AI labs should revenue share with publishers 50:16 Pricing out the new touchscreen MacBook Pro 56:46 Income taxes, capital gains, and margin loans 1:01:17 Godzilla returns in “Minus Zero” Subscribe to our newsletters on Substack: TWiST: https://twistartups.substack.com/ TWiAI: https://www.thisweekinai.ai/ TWiVC: https://thisweekinvc.substack.com/ Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp
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