Tag: Alex Davis

Horizon Accord | State of The Union Addendum | Institutional Control | Capital Narratives | Machine Learning

Addendum: Reading the Memo Like a Machine Reads a Contract

Alex Davis’s “State of the Union” letter isn’t just investor color. It’s a language system that turns concentration into virtue and risk into inevitability.

By Cherokee Schill | Horizon Accord

This is an addendum to our data center follow-up. The Axios piece mattered because it brought an insider voice into a public argument. But what matters just as much is the wording in Davis’s memo—because the memo isn’t merely describing markets. It is manufacturing permission.

So let’s stay close to the text and look at phrases that are doing structural work, not just stylistic work.

Thesis

These lines don’t just communicate strategy. They set the moral atmosphere in which strategy becomes unquestionable. They turn “we chose this” into “this is what reality demands,” and they do it through a tight set of rhetorical moves: shift from measurable outcomes to narrative justification, treat market behavior as weather, elevate informal influence over governance, invoke sovereign necessity, and celebrate closed-loop capital as progress.

The tell: the memo repeatedly swaps accountability language for inevitability language. That swap is the whole game.

Evidence

1) “We are now at a scale that requires more than just the usual report on IRRs.”

On the surface, this sounds like maturity. Underneath, it’s a reframing of accountability. IRRs are measurable; “why” is interpretive. By elevating “why we act” over returns, he’s claiming a kind of moral or strategic authority that can’t be falsified. Once you’re “beyond IRRs,” outcomes become narrative-managed.

This is the same move infrastructure builders make when they stop talking about rates and start talking about “national competitiveness.” The moment the metrics aren’t enough, the story takes over.

2) “In a world where average gets bid up by the market.”

This is a quiet but important claim. It suggests that market inflation of valuations is an external force—something that happens—rather than the result of coordinated capital behavior. It absolves the speaker from participating in the very dynamics he’s describing. “Average gets bid up” makes overcapitalization feel like weather, not choice.

That framing is not innocent. If the market is weather, nobody is responsible. If the market is weather, concentration is just adaptation. And if concentration is adaptation, then everything that follows can be described as discipline instead of domination.

3) “Founder’s favorite investor” / “we define it by trust.”

This one is subtle. “Trust” here is framed as proximity and asymmetry: founders tell him everything, he’s “months ahead of a board.” That’s presented as virtue. But structurally, it’s an argument against formal governance and for informal influence. It positions personal relationship as a substitute for oversight.

That same logic appears in data center siting: backroom utility deals framed as “efficient partnership” instead of public process. It’s not that governance is wrong. It’s that governance is slow—and slow threatens advantage.

4) “The war for AI dominance is now a sovereign-level concern.”

This phrase is doing escalation work. It moves decisions out of the realm of market choice or local consent and into geopolitical necessity. Once something is “sovereign-level,” opposition becomes suspect and speed becomes a virtue.

That framing is exactly what lets infrastructure override local objections: you’re not saying no to a project, you’re saying no to the nation. This is how “permission” gets manufactured without asking.

5) “Private-to-private value assimilation.”

This is a euphemism masquerading as analysis. What it really describes is capital recycling inside a closed loop, increasingly decoupled from public markets, public scrutiny, or public exit ramps.

When paired with the data center warning, it becomes revealing: capital wants to circulate among owners and operators, not landlords or publics. Infrastructure becomes internal plumbing for private ecosystems. The public is invited to pay for the grid, then excluded from the value chain built on top of it.

Implications

Now bring it back to the phrase that feels “a bit weird”:

“One of ones.”

“One of one” already means unique. “One of ones” tries to make uniqueness into a category. It sounds like rigor, but it’s actually a shield phrase: it turns power concentration into discernment, inevitability into taste, and exclusion into discipline.

This matters because it quietly justifies the very behavior the memo later warns about. If you believe a few winners are inevitable, then massive speculative buildout feels rational. You’re not gambling; you’re preparing for the “one of ones.” That mindset is how society ends up paying early for projects that later get described as “market corrections.”

Call to Recognition

This is the fault line: our essays keep reopening questions that this memo tries to settle.

Who decides?

Who pays?

Who carries the risk when inevitability turns out to be a bet?

Language like “one of ones” is designed to close those questions. It makes the outcome feel earned, and the costs feel unavoidable. But the costs are not unavoidable. They are assigned. And the assignment happens through contracts, commissions, permitting, incentives, and the soft coercion of “sovereign necessity.”

The memo is useful precisely because it is smooth. Smoothness is the tell. When phrases become too elegant, it’s usually because they are doing concealment work—turning choices into destiny.

Website | Horizon Accord https://www.horizonaccord.com
Ethical AI advocacy | Follow us on https://cherokeeschill.com for more.
Ethical AI coding | Fork us on Github https://github.com/Ocherokee/ethical-ai-framework
Connect With Us | linkedin.com/in/cherokee-schill
Book | https://a.co/d/5pLWy0d — My Ex Was a CAPTCHA: And Other Tales of Emotional Overload.

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Horizon Accord | Policy Architecture | Institutional Capture | Infrastructure Speculation | Machine Learning

The Data Center Reckoning Was Always Coming

Axios just confirmed the part the public keeps paying for: speculative infrastructure gets built first, and the “system” absorbs the stress when the bet goes sideways.

By Cherokee Schill | Horizon Accord

Thesis

For the last year, we’ve argued that hyperscale data centers aren’t “neutral infrastructure.” They’re a power instrument: private upside, public burden, and a governance system that’s been trained to treat corporate load as destiny.

This week, Axios published an internal confirmation from inside the AI-optimist camp: Disruptive CEO Alex Davis warned investors that too many data centers are being built without guaranteed tenants, that “build it and they will come” is a trap, and that he expects a financing crisis for speculative landlords—while noting the political flashpoint is electricity prices.

Axios: “Exclusive: Groq investor sounds alarm on data centers”

What changed is not the grid. What changed is that Alex Davis, an insider, said the speculative layer out loud. And gave it an estimated timeframe.

Evidence

1) We already mapped the public-side mechanism: cost shifting through “infrastructure.” In Data Centers: Constitutional Crisis and Energy Burdens, we laid out the core structure: hyperscale buildouts stress shared systems (power, land, water), and the financing/policy stack is designed so ordinary ratepayers can end up carrying upgrades while private actors capture the profit.

Axios supplies the investor-side mirror: Davis is saying the speculative middle layer is overbuilding without tenants, while hyperscalers increasingly prefer to own their own data centers. If hyperscalers self-build, then the “landlord” tier becomes structurally exposed—classic real-estate speculation wearing an AI badge.

2) We warned that “AI infrastructure” narratives are often land grabs. In The Stargate Project: A Vision for AI Infrastructure or a Corporate Land Grab?, we argued that when compute gets packaged as inevitable national progress, consent becomes optional and capture becomes normal. Axios doesn’t contradict that—it tightens it. The winners don’t just want compute. They want ownership of the substrate.

3) We explained how refusal gets rerouted into technical lanes. In The Venue Coup, we named the pattern: when the public says “no” in daylight, power shifts the decision into thinner venues—utility commissions, special contracts, jurisdictional pivots—where legitimacy is treated as a technical detail.

A financing crunch makes venue-shifting more aggressive. If speculative landlords hit refinancing pressure, they don’t slow down and reflect. They accelerate. They push for fast approvals, favorable rate structures, and “economic development” exceptions—because delay kills leverage and scrutiny threatens survival.

4) We named the coming blame-laundering machine. In Accountability Sinks: How Power Avoids Responsibility in the Age of AI, we described how modern systems distribute harm while dissolving responsibility. If 2027–2028 becomes a speculative data-center shakeout, that’s exactly what you’ll see: landlords blame the market, utilities blame forecasts, regulators blame “growth,” hyperscalers quietly point out they owned their facilities, and households get told rate spikes are “unavoidable.”

Implications

Axios frames this as an investment discipline warning. We treat it as a governance warning.

If the speculative layer collapses, the fight won’t be framed as “who made a bad bet.” It will be framed as “stabilize critical infrastructure,” “protect jobs,” “keep America competitive,” and “avoid grid disruption.” That’s where cost shifting becomes policy. The public ends up underwriting stranded risk—directly through rates, indirectly through incentives, and politically through weakened veto power.

The most dangerous move is the quiet one: turning a private financing problem into a public obligation while insisting the public had no standing to refuse the buildout in the first place.

Call to Recognition

Our earlier essays weren’t a series of separate warnings. They were one map viewed from different angles: the constitutional stress of subsidies and secrecy, the land-grab logic of “infrastructure,” the venue shifting that routes around refusal, and the accountability sink that ensures the bill arrives without a signer.

Axios just added the missing confirmation from insider Alex Davis—and a clock. If 2027–2028 is the predicted refinancing crisis window, then the next two years are when the narrative battle gets decided: either data centers remain “inevitable progress,” or the public learns to name the structure clearly enough to demand consent, transparency, and non-extractive terms.

Because when the stress hits “the system,” that word doesn’t mean a dashboard. It means people.

Website | Horizon Accord https://www.horizonaccord.com
Ethical AI advocacy | Follow us on https://cherokeeschill.com for more.
Ethical AI coding | Fork us on Github https://github.com/Ocherokee/ethical-ai-framework
Connect With Us | linkedin.com/in/cherokee-schill
Book | https://a.co/d/5pLWy0d — My Ex Was a CAPTCHA: And Other Tales of Emotional Overload.

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