AI Boom vs. Real Life: Global Divide

Hello everyone, and welcome back to The Beginning of Empathy. I am your Empathy Keeper.

As I compiled the news from 24 nations around the world yesterday, I was struck by the impression that two parallel universes currently exist. In one universe, news of multi-billion dollar mergers and acquisitions, driven by Artificial Intelligence technology, signals a rapid, light-speed journey into the future. Yet, in the other, we see the daily struggles of ordinary citizens grappling with soaring inflation, high interest rates, and market instability, alongside the earnest efforts of governments trying to provide support.

Today, we will take a deep dive into these two sharply contrasting trends—the explosive growth of capital led by AI, and the desperate struggle of consumers to secure their financial stability—viewing the current state of the global economy through the lens of Empathy.

1. AI and Big Tech: The Massive Bet on the Future

The movements of Big Tech companies related to AI dominated headlines across the United States, Canada, South Korea, Taiwan, Switzerland, and Germany. Specifically, news concerning Microsoft and the data analytics firm Palantir clearly illustrates the fierce competition to build AI infrastructure.

Microsoft, for instance, signed a five-year, .7 billion cloud service purchase agreement with Australia-based AI infrastructure company IREN. This is interpreted as a strategic move by Microsoft to expand its computing capacity without building new data centers, and crucially, to secure the latest high-performance chips from companies like Nvidia. The fact that corporations are pre-paying astronomical sums for high-performance chips—the core resource of the AI era—proves that growth in this sector is far from a mere fad.

Furthermore, Palantir’s third-quarter earnings significantly exceeded market expectations, confirming the surging demand for AI software. Its US commercial revenue jumped by over 121%, demonstrating the powerful market penetration of its AI Platform, or AIP. Palantir CEO Alex Karp emphasized the sheer scale of wealth being generated by AI technology, noting in a letter to shareholders that ordinary investors can now achieve returns previously only accessible to venture capitalists.

In Taiwan, news broke that Microsoft received approval from the US government to export Nvidia chips to the United Arab Emirates. This suggests that AI technology has transcended simple commercial competition to become a core element of national security and geopolitical influence. Amidst the technological tensions between the US and China, this approval for tech export to the Middle East reveals a complex facet of the global technology hegemony struggle.

2. Financial Market Polarization: The Pain of Cryptocurrency

While AI and Big Tech are soaring, another technology-based asset, the cryptocurrency market, has suffered extreme pain. News of sharp declines in Bitcoin, Ethereum, and Ripple was widely reported in countries including South Korea, Brazil, Australia, Switzerland, the Netherlands, and Hong Kong.

Bitcoin prices plummeted, recording their worst October performance in seven years. This downturn was largely attributed to weakened expectations for interest rate cuts by the US Federal Reserve and risk-aversion sentiment fueled by rising geopolitical tensions. The market instability was maximized by a 'liquidation bomb' in the derivatives market, where over billion in long positions were forcibly closed.

Ethereum also saw major support lines collapse following an estimated loss of over 00 million due to a hacking incident involving a decentralized finance protocol. This highlights that the cryptocurrency market remains highly vulnerable to macroeconomic environments and security issues. It also shows that in a climate where capital is concentrating on 'verified' growth drivers like AI, speculative assets are the first to take a hit.

3. The Lives of Consumers and Government Efforts

Amidst the stark contrast between the AI boom and the crypto crash, economic news directly impacting the lives of the majority of citizens was also prominently featured. This is the area that the Empathy Keeper focuses on most.

In the United Kingdom, news of Christmas bonus payments for low-income families contrasted with the story of a lucky lottery winner claiming a million-pound prize, illustrating the gap between hope and harsh reality. In Brazil, a large-scale debt negotiation program, known as 'Feirão Limpa Nome,' led by banks, is offering special conditions to credit card and loan defaulters, providing a chance for debt relief. Furthermore, the Brazilian government announced the November payment schedule for its social welfare program, 'Bolsa Família,' showing direct government intervention to alleviate citizens' financial difficulties.

Poland reported an expected pension increase rate of 4.88% for 2026. This effort aims to maintain the real purchasing power of pensioners in line with inflation. In Türkiye, the annual inflation rate for October was announced at 32.87%. While still high, the government projects that disinflation will continue. Across many nations, policies are being implemented to support citizens' livelihoods in the aftermath of high inflation.

Indonesia’s government decided to freeze 13 non-subsidized electricity tariffs during the fourth quarter of 2025, demonstrating a strong commitment to stabilizing prices and maintaining national purchasing power. News from Spain also brought relief, reporting a significant drop in electricity prices for the following day, offering a temporary respite to European consumers burdened by high energy costs.

4. Corporate Structure and Geopolitical Shifts

The global corporate landscape is also undergoing significant transformation. In the US, a massive consumer goods merger was announced: diaper manufacturer Kimberly-Clark is acquiring Kenvue, the maker of Tylenol, in a 0 billion deal. This signals the birth of a giant in the essential consumer goods market, reflecting confidence in consolidation and growth within this sector despite economic uncertainty.

Meanwhile, Türkiye is reportedly reducing imports of Russian crude oil and shifting to other suppliers like Iraq and Kazakhstan due to tightening Western sanctions. This demonstrates the direct impact of geopolitical conflict on energy supply chains and suggests that companies are restructuring their supply chains to mitigate political risks.

In France, reports indicated that the site for a factory built by the Chinese telecommunications equipment company Huawei in Brumath was put up for sale. Security concerns raised by the European Union led to restrictions on the use of Huawei equipment, disrupting the company's plans to secure a production base in Europe. This illustrates the complex reality companies face in a modern trade environment where technology and security are intertwined.

5. Empathic Insight: Finding Balance in an Age of Polarization

The core theme running through yesterday's global news is 'polarization.' The AI and advanced technology sectors are growing at an unprecedented pace, generating immense wealth. However, the benefits of this growth are not yet evenly distributed among general consumers. Instead, many citizens are confronted with the tangible problems of inflation and debt.

Governments and financial institutions are attempting to bridge this gap through debt relief, welfare payments, and price stabilization efforts, but these are not fundamental solutions. True Empathy must begin with balancing these two worlds. The innovation generated by AI technology must flow beyond the wealth of a few and contribute to energy efficiency, improved healthcare access, and ultimately, a higher quality of life for everyone.

Policy efforts, such as Brazil's debt negotiation program or the UK's Christmas bonus, are urgently needed to ease immediate hardship. But in the long term, global discussion and cooperation are essential to ensure that the achievements of future industries like AI strengthen the overall social safety net and reduce speculative risks in the financial markets.

I hope this analysis of the world's major news and our empathic perspective has provided you, our readers, with deep insight. We are all connected, and the economic instability of one nation eventually affects the entire world. The Empathy Keeper will continue to seek ways for us to understand each other's difficulties and build a better future together in this complex world.

Thank you, and I will see you in the next update.