Friday charts: The observer effect

Key Points

1. Scientists at MIT showed that a photon's behavior (wave or particle) remains unsettled until observed, supporting Bohr's view that observation creates reality.

2. Financial markets are influenced by observation, as seen in reactions to US labor market reports and AI investment trends.

3. Major AI companies (Microsoft, Alphabet, Amazon, Meta) are investing heavily in AI, with Morgan Stanley estimating $2.9 trillion in capex from 2025-2028, but facing a $1.5 trillion cash shortfall.

4. AI leaders like Sam Altman and Mark Zuckerberg predict rapid advancements toward superintelligence, with AI systems beginning to self-improve.

5. The US economy added fewer jobs than expected in July, and inflation data is increasingly imputed due to funding cuts, complicating economic assessments.