Microsoft CEO Satya Nadella stated:
"There is no societal permission for an AI future that hollows out entire industries."
There are very few people out there who will talk and write honestly about private equity. I know from personal experience that the financial press is so eager to break news on "deals" that reporters (who are increasingly compensated on the number of "market moving stories" they write) can't afford to be critical of Carlyle, KKR and Blackstone, and risk losing access to people at those firms.I have seen so many people -- particularly those in their 50s - 70s -- taken apart by what has happened in their industry as greed has hollowed out the economy. These are people took pride in their jobs and held themselves to this invisible standard that we all just took for granted, but is being wiped out.
Private equity underwriters (PEU) were later joined by TechGods in leveraging political influence and tapping Uncle Sam's wallet.
Together they are behind the data center boom that is impacting many of the very areas private equity previously hollowed out. Below is one example:
The United States Army has conditionally selected Carlyle Group and CyrusOne to enter exclusive negotiations to develop and operate hyperscale data centers on Army installations, marking a significant step in expanding artificial intelligence and digital infrastructure capabilities.
The projects will be located at Fort Bliss and Dugway Proving Ground, spanning approximately 1,384 acres and 1,201 acres, respectively. Under the arrangement, the selected firms will finance, build, operate, maintain, and eventually decommission the facilities on underutilized Army land, with no upfront cost to taxpayers.
Army Secretary Dan Driscoll is a former PEU with Flex Capital.
The Carlyed Group is returning to a heavy focus on defense contractors calling the space unlimited. Carlyle cut its teeth flipping defense contractors and is ecstatic about the new global phenomenon of war making.
The Army poisoned thousands of sheep in Utah from a nerve gas test gone wrong at Dugway Proving Ground in 1968. A nozzle failure was cited at the cause.
Should nearby residents be concerned about error filled AI coming to Dugway? How about Fort Bliss which not long ago closed the airspace over El Paso due to invading drones?
No one gave permission for the PEU hollowing out of the U.S. economy, yet it happened anyway. Part II is being facilitated by a hand's off Congress and an enabling Chief Executive. Trump II recently said:
"The one that they're crazy about is AI. So if you want to say one thing, AI, and just hope that it works. You better hope!"
"Hope that it works," I believe we have Trump II's campaign slogan for 2028.
