Level1 Techs delivers a biting reality check on how tech giants have turned supply chain failure into a record-breaking profit machine. It’s a masterclass in explaining why the industry’s "worst-ever availability" is actually a calculated win for the bottom line.
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The Level1 Links with Friends Show July 22 2026: What's Old is New Again
Added:Hello everybody. Welcome back to Links with Friends. Today is July 22nd and we're doing business and social for your hump day.
>> Here's a shocker. TSMC is making a lot of money.
>> TSMC is going to invest another hundred billion dollars in Arizona after second quarter profit soarses 77%.
>> What a smooth transition. just right into it.
>> Well, it's not a surprise.
>> Yeah, >> I like how TSMC is not complaining as hard about being able to find competent employees. That's nice.
>> I was just thinking that I was like, "Oh, we can't do it. We can't do it."
Now all of a sudden it's fine.
>> You can on sure. And they are not the only ones. And the companies that are catching all these windfalls are not saying anything that we want to hear. SK Heinik CEO warns 20 27 will be Memory's worst year ever with shortages set to outlast the decade through 2030. Uh but not for the profit margin. The profit margin is going to be the best year ever. Availability worst year ever.
Yeah. Worst year for you, not for him.
But there is also that spectre of uh you know the collapse which I think the market was selling off this morning. I haven't looked at it after [laughter] that. But you know like we got another China disruption which we'll talk about in the AI section and that is a a real threat to these numbers. So that they're aggressively expanding and that could go badly. The thing that I like the most about if the like the memory is going to be harder to reach directly but the companies that are buying these multietabyte flash clusters that is going to be amazing when it hits the secondary market because it's just going to be oh yes I would like a pabyte of gently used flash storage that's amazing and one victim of the supply chain issues was Valve and they may have had to cut some corners and this may stain their reputation.
>> Valve confirmed steam machine red light overheating warning is showing earlier than it should. BIOS fix on the way will raise the temperature warning threshold to 100° C. Users are currently seeing ominous warning signs when the CPU hits 95 degrees C or the GPU hits 90° C. Uh, you know, if you just take the front off, it helps tremendously.
>> You know what else would really help here is if you took the individual components and spaced them out a little bit and put a bunch of fans on it.
[laughter] But the cube, we've got to have the Gabe cube. It's fine. You know who's going to love the steam machine? Cats. [laughter] Cats are going to be all over that thing.
>> It's going to overheat even faster.
>> And uh the GPU situation is just as bad as the memory situation, the RAM situation. And uh in order to give the people something, we have to just accept that you will not game in this timeline.
You will only game in the past. Pallet officially announces RTX 3060 return with its new Infinity 2 OC launch. 2021 GPU with 12 gigs of VRAM. Is an AI crisis stop gap is Tom's Hardware's headline.
>> They didn't change anything.
They just pulled the production line back up and they said people will buy it. What choice did they have? And they're probably right.
>> Yeah, they're not wrong really. Uh I I also enjoy the 4090 relaunch edition.
It's like, oh, the 48 gig 4090 where you mail in your old 4090, which is unoptanium, and then they upgraded to 48 gigs of VRAM.
>> And one company is not doing well in the AI, you know, stratosphere.
>> Well, you know, that's the fast company headline, but then you look at it and you think, what?
>> Well, they're not making 77% profit.
>> Yeah. Like they're doing fine. They're just not doing fantastic. Well, the market doesn't agree.
>> Fast company's headline is we faltered.
IBM stock collapses 22% after a grave warning about AI. So, this was a a Q a pre-warning of Q2 and it said that they missed their targets. And you think, oh, this is catastrophic, right? They missed their target by like $8.
>> Was that per share?
>> No, just like $8 total. [laughter] >> That can't be true. That's a rounding error.
$8 per share would be more significant.
>> No, it was uh it was No, seriously, it was like their earnings per share was supposed to be like $35 and it ended up being like $2.97 and it's like what? That's not that much of a miss, guys. Come on. And then IBM explained it as, oh, we're doing a lot of capex. We're doing a lot of spending.
And that sent their stock down 22%. It seems like it was just like there was a tiny hint of blood in the water.
Everybody is is uh >> real on edge. Yeah.
>> About [clears throat] the the collapse in all things.
>> Well, but it's because the societal collapse is driving every nobody toward gambling. [laughter] >> That's a guarantee in a collapsing society. And that has certainly stung some people here.
>> SpaceX stock plunges to an all-time low after a competitor makes a major leap.
So, what it debuted at like 140 and it's down to like 120 now or something like that or debuted at 180.
>> I think it was 130 something. Yeah, it's below the IPO price. It spiked way above it. If you bought at the top, you took a big hit. Now, they're talking about when they say competitor, they're talking about um the other space launching, not the other AI. And I think was it China or Japan that just did a reusable rocket?
>> Yeah. Oh, yeah. The And they did it with wire instead of chopsticks, which was kind of brilliant.
>> Yeah, the wire was really neat.
>> So, not the unicorn that it used to be.
And Elon Musk is also in the AI business and he is like everybody else in the AI business having trouble getting that power.
>> Elon Musk quietly buys a1 billion dollar gas turbine company casually power rock.
Well, he's building all these natural gas turbines because apparently you can get the natural gas. You just can't convert it to electricity easily.
>> Yeah. Well, you say oh just a small amount $1 billion, but remember he has something to the tune of like $900 billion, right? So, it's actually not that big a deal. He could buy one of these every day for the rest of the year and still be just fine.
>> The I think this article only tangentially obliquely touches on the fact that he's already in trouble in Tennessee for running like his whole data center is run by portable generators and there's really not a lot of rules around portable generators. So, once a year he has to stop the generators and move them. So, it's just rows and rows and rows of generators. So once a year you stop one and you move it one position and then you hook it back up and turn it back on.
>> Apparently Mississippi as well. Elon Musk's Colossus 2 data center installed 59 natural gas turbines without permission. Report claims thousands of tons of pollutants. Yeah, same deal.
Maybe this is what I was thinking of in Mississippi already suffering from elevated lung disease rates. I thought it was Tennessee, but maybe it's Mississippi.
So this I think is sort of like a gray area. We're not sure if these turbines are okay or not, but it's such a poor area that it seems no one really cares.
>> You know how in No, I'm not thinking of room world.
What am I thinking of?
>> Factorio, you know how like as the pollution gets higher and higher, just more and more bugs swarm.
>> We should be the people should be the bugs on that plan.
>> Can factory be modded? Someone should mod in humans like >> come running to destroy your factory >> and instead of doing the other factorial stuff you're building data centers.
[laughter] >> That would be a great mod.
>> Uh I would also, you know, concede it's like what if we just let Elon Musk handle nuclear material? Like I mean that's probably fine, right? It's like stop with the turbines.
>> Are you saying that seriously?
>> Yeah. Just it's like here's build a nuclear reactor. It's fine. Stop with the turbines.
>> We just read a headline about how he's poisoning a community with And you're thinking, "Yeah, he can handle nuclear waste." [laughter] >> Well, when you put it that way.
>> Yeah.
>> Well, let's look at how he's handling his other business, which seemed like the greatest thing ever. But then he was given government money. And he was given government money in a very underhanded way. And he was like, "Oh, our system can handle all of those new customers.
Don't worry." Elon Musk Starlink socks customers with a $1,500 highdemand search charge. So basically Starlink in certain places is oversubscribed and to get people to stop subscribing he's messing with the prices. Now I I think there's a couple of disingenuous things in this article like it points out how it's like Elon Musk took all the subsidy money and didn't do anything. But the only reason Elon Musk got the subsidy money and didn't do anything with it is because all the incumbent Telos also took subsidy money to build a fiber optic network which they didn't do. And this is how we end up with Starlink. Do you want Starlink? Cuz this is how we end up with Starlink. We should be mad.
We I have enough anger in my heart to go around to all of them.
>> And a special little section for this, which we should all have.
>> You You know how like you eat a big meal, you're like, "Man, I couldn't eat anything more." But then they offer you something sweet and you're like, "I think I've got room for that." There should always be more room for your hatred of flock. No matter how full your heart is for hatred for other tech companies, >> truck drivers allegedly ramming flock safety cameras to destroy them. Yeah, they allegedly there's a lot of evidence.
>> There's What I liked about this article is they're like, "We don't know if it's true." And Flock won't make a statement about it. I'm like, "I bet Flock knows."
And I bet they're panicking a little bit.
>> And they're probably they don't want this to catch on to be, you know, like >> like Tik Tok >> cuz we're [snorts] more than ever we're just a mob, you know, moving around on social media. So, let's promote this as much as we can. Go and retweet. You find this there's a tweet on this article. Well, go and retweet that.
>> Truck drivers are now taking down flock cameras in Ohio by ramming directly into the polls and more people are starting to do the same. Law enforcement is struggling to keep up. Remember where was it? Chat should remind us or the in the comment section should remind us the place that was uh submitting tips to the police like who took it down. It's like oh I've got a tip for you. It was Batman and Robin.
>> Mitch McConnell. [laughter] Where do you think he's been?
>> I bet that's funny because you know like the cops get the memo. It's like we got to find this person. We got to solve this. We got to track them. And they're like, "Oh, let's go to Oh, [laughter] >> it's been destroyed."
>> I'm sure there's a record of what the cameras saw right before it went offline.
>> The the blinding hammer of the people's justice.
And we have an interesting story here about Epic and Google because you thought that they had agreed and it was all worked out and everything was okay.
It's not. Third party app store is coming to Google Play next week as Epic settlement withdrawn.
So Google is going to let third party play stores happen, but still within the rules of the Play Store kind of.
>> They're trying everything they can not to let that happen, but it seems like the judge is going to insist upon it.
And uh we all know Window mentions it constantly, but the Google search like the the one that gets me is when you go to the search and you type in the name of an app that you already have installed that you want to launch >> and it searches the web for it instead.
>> That makes me so angry.
>> And someone at Microsoft has heard that >> and they are doing the minimal, but at least they're trying. I guess >> Microsoft announces major Windows 11 search overhaul that prioritizes clearer local results and removes ads. Huge effort to fix search on Windows is finally happening.
>> Except it's not that great. I didn't think like they have a screenshot in this article.
>> But think about the word that doesn't have any place here. Effort.
>> Yeah, >> you're removing stuff.
>> I am pretty sure I could fix that in a day. [laughter] You can just comment things out.
>> You don't even have to fully remove it.
You just commented. return zero.
>> I guarantee you if you go to the place in the code where it lets you customize the start menu, your options were like more ads, personal ads, or less ads. I guarantee there's a commented out option that is no ads and all you have to do is remove the comments.
>> Well, here go back to it real quick so we can look at the screenshot because they have one comparing them.
What what annoys me in this is that I think it still shows you Oh, no. Has that changed? I say it still showed you like garbage. Like you didn't show you local results first.
That's kind of hard to see.
>> I've literally searched for terminal before and it has brought up the movie The Terminal. [snorts and laughter] >> What the are they doing over there?
>> I like when it searches the app and takes you to the app's web page, but it's like I have it.
>> I have this. I don't need to redownload.
>> Yes, I'm aware of this app. I would like to launch it.
>> You don't have the Windows Store version of it. You have the manually installed version like a heathen.
>> It's not allowed.
And Xbox is having a rough time. Uh they have determined that they are a failure and they've been a failure for several years, but they didn't realize it for some reason. And now they have another terrible PR problem on their hands.
>> Xbox player, kind of a famous one, loses thousands of digital games after Microsoft deletes their 25-year-old account. This is because it was abused by uh a fishing campaign or something.
Microsoft was able to identify that his account was somewhat compromised and solved the problem by deleting it. Now, this has turned into a PR nightmare and Microsoft is trying real hard to get it back.
>> They did.
>> Okay, >> there was an update. The account has been restored. So, don't worry. This won't happen to you if you're famous.
[laughter] >> Yeah, if you're >> just be more famous.
>> Actually, there's at least 10 people on our forum that this happened to, and they showed up at the forum complaining like, "How could this have happened?"
And it's like, "Is there anything I can do?" The answer is no. You can install Linux. It's like the best time to plant a tree was 20 years ago.
>> Work on your social media following.
[laughter] >> Yeah, there's two options. You either install Linux or you become famous.
>> And that is not the only bad PR move that is coming on Sony. Now, Sony might benefit from the Xbox cratering, but then they rolled out their discless announcement, which bought them their own version of the vitriol. Sony deletes a bunch of movies from the accounts of people who bought them. Yeah, it's like you bought a movie and you have it on your PlayStation. Guess what? It's going to be deleted. Allah when Amazon lost the rights to 1984 and deleted it off your Kindle. That's what's happening here. Because apparently you don't own anything. Although, if piracy if owning isn't something, then piracy isn't theft. It's just like I love how just antiseptic this is. It's like, "Oh, uh, we're going to delete these movies."
You're fine with that, right? Yeah, it's fine.
And we all know that AI slot music is everywhere, especially in videos, you know, and it's free and sounds just as good as the other one. It's just some a beat in the background or whatever. And one of the companies that's very popular for that has always said, "We didn't steal that. No, we did. We got this through, you know, means that we're more above board." Well, someone hacked them and now we know.
>> Turns out AI music appo got hacked, giving a glimpse of just how much music it scraped. And this is this is true.
They literally went to like Spotify and downloaded everything.
>> YouTube Music, I think, >> and YouTube Music and said, "Hey, let's make our stuff sound like this." Which is, you know, very not what they said publicly and kind of surprising. So the hackers were able to sum up the hours from all of the music clips the music clips that Sunno had 113 879 hours of music.
Some of that might have been public domain but certainly not all of it.
>> Yeah.
And if you were one of the people who didn't get to see Taylor Swift or your favorite World Cup match or whatever, this man might have a lot to do with it.
>> StubHub CEO hit with deceptive practices class action lawsuit over mass scalping because StubHub will just buy up all the tickets and then sell them to you at a profit.
>> More importantly, this fell right here, uh, Eric Baker is the CEO of StubHub.
And this class action is claiming that he is part of a venture capital group that is benefiting from ticket scalping.
Like that's their business model.
>> That seems like a conflict of interest.
>> They're investing money into ticket scalping as a way to get returns.
>> It really is a disease, isn't it? Just the the greed disease. Well, I mean, it's really you it's a finite resource and you buy it and it's like, oh, the market is willing to bear higher prices. We'll just It's like that. It's not great.
Stop going to these things. I know that's tough to, you know, like, oh, take a little bit more of joy out of my life. Well, you got to quit feeding the machine.
And, uh, we have one design story this week.
>> Google images gets a Pinterest-like redesign focused on discovery. aka infinite scroll addiction.
>> Yeah, infinite scroll. And also, at least in some of these pictures that like in the UI, it doesn't look like it makes it easy to figure out who posted it.
>> No, >> which I didn't like.
>> When you have >> the same problem I have with Pinterest.
>> When you don't have a grid and you have these staggered items like this, what happens when you sort and the stagger doesn't support your sort?
>> It's not great. Pinterest does the same thing.
>> Well, how do they deal with that?
>> It just kind of like does its best, but it's not like a perfect Yeah, >> that's silly.
>> It's because it's it's meant you just supposed to infinitely scroll through it. Don't don't actually like think about how you would use it. You just blindly scroll through it.
>> Don't try to curate the content.
>> Yeah. Yeah. And that's the reason there's no attributions to a lot of those images either because it's like it doesn't matter. This is probably just so they can sneak in more AI images so people stop bitching about it.
>> Maybe. Yeah.
>> They're like, "No, you will use Google AI for this."
>> But maybe there's some good news on that front. The death of the status update.
why 55% of Americans stopped posting on social media.
>> The short answer is it's I'm gonna paraphrase this. It's hard to keep up with the lies to compete with everybody else's lies.
Starting to feel like a job. So, they got some graphs in here. Uh feels like work. Yeah. Oh, they broke it down by generation, which is kind of nice. The boomers love it. Yeah, they still love it.
>> Oh, what? Look at the mouse cursor.
>> Yeah. Yeah, that's an addition.
>> Oh, that's the the Okay. Yeah, [laughter] >> because all of us are getting older and blinder and no one can see the cursor anymore.
>> How far can we take it?
>> Oh, they can't see that.
>> Oh, they can see the cursor. It's huge.
It gets bigger like the more you shake the mouse. [sighs] >> Uh yeah, emotions experienced uh when not when not checking your app.
So, peace is overwhelming.
>> Discomfort. Those are the addicted people.
>> Yeah. There's also said anxiety. Anxiety I feel like is more like workrelated where it's like am I missing messages for work?
>> I really think that we ought to encourage this kind of thing in old folks homes, but you got to keep the bots out of it. So like you can have a sense of community and it's like, oh, you can go see what your grandpa's up to in the old folks homes. Like, oh, you know, the grandpa's played checkers today and did whatever. I think that that's fun and that would give them something to do.
>> That's what Facebook used to be. Like that's actually a big reason a lot of people I think don't post anymore is because you're not actually seeing your friends posts. You're seeing just garbage that they're trying to get you to like interact with or rage bait or whatever it is. AI generated content. So you don't see what your friends are actually doing.
>> But even when you see your friends doing it, it's not genuine.
>> It's curated. It's people playing a role.
>> I don't think grandpa actually won that many rounds of checkers today.
[laughter] >> I think temptation. Yeah, >> maybe you only get so many tokens to post. No, they probably make it worse.
>> That'd make it worse. It'd be pay to play.
>> And last week we learned that Instagram made people angry because it said, "Hey, we're going to create images out of your images." And they didn't think that one through because they actually went too far for the Instagram addicted. They they crossed a line there.
>> Meta has removed that controversial AI feature on Instagram after backlash that we reported on last week.
>> Now, let's go. Let's put in our uh estimations here. I'm going to say it's back in 8 months.
>> Oh, you think that long?
>> Yeah, I think it'll probably show up at like Thanksgiving or Christmas.
>> Oh, that's a short much shorter time.
>> Yeah, I'm thinking like three months.
>> All right, there we go.
Mark it down. Put it on uh what's the poly market?
>> Cali market. Is it cal? No, I don't know.
>> They're both I think they're both bets, right? I was thinking Clara, but that's why I now pay later.
And uh Meta is being collectively sued by the attorney generals of a bunch of states and they have gotten some paperwork that is very alarming to them because it li it's like hey if we can prove that you violated this many times here's your penalty.
>> Meta says that US states are seeking $1.4 trillion dollars in penalties in in August youth safety trial which is why they're so desperately seeking online age verification laws. They really really want you to have to verify your age online so that they have a convenient out for this lawsuit.
>> Uh Meta's market cap 1.5 trillion.
So that would leave them very little money. I mean on the one hand meta but on the other hand if the fine is going to be that significant I think that you could make the same argument for like processed sugar because children will get like children lose their mind with processed sugar and all those products were designed to be addictive but that was individual companies versus one kind of like monolithic social media because what's the Facebook market share in social media it's got to be massive right >> I think less than it was less today than it was 5 years ago.
>> Yeah. Still massive.
>> Well, so they have Instagram and what don't they they own WhatsApp, too?
WhatsApp? Yeah, they own a lot of different social media platforms.
>> Threads, is that still around?
>> Is threads meta?
>> Yeah, it is. Wasn't that their >> goodness gracious? So, they own Yeah, they own a lot of different platforms.
>> And the EU is tired of all of it.
>> Disable autoplay and infinite scroll or risk massive fines, the EU tells Meta.
It's like we're gonna it's like I think it's funny though like that's the headline but that's not really like there's a lot of frustration from the EU in this I sense because it was from the EU it was hey Meta your platform is designed to be addictive and Meta got tired of the back and forth and basically said okay which features exactly do you want us to change and then eventually it was infinite scroll and autoplay >> I don't if you're addicted to short form videos Is pagionation going to stop you?
>> Probably not.
>> I don't think that's going to change anything.
>> Yeah, >> it is a small amount of friction.
>> I guess when you get down to the bottom and you're like, "Oh, page 70."
>> And then you have to hit that load and you see your face reflected in the screen for a minute. You're like, "What am I doing?"
>> No, because they won't. That'll be JavaScript, right? It won't actually load a new page.
>> It'll be super quick.
>> That'll be like a beautiful little animation to distract you.
>> It'll run so you don't see your face.
and Meta laid off a ton of people recently and some of those people are saying I don't think that this was because of my performance. The >> lawsuit claims Meta's layoff decisions were made by AI and not humans. So the lawsuit seeks to preserve the people that were laid off their positions and salary and the work that they're doing until this issue can be resolved, which is a really interesting delay tactic.
They're also saying that it seems like the data set is heavily weighted toward people who took time off for medical reasons, >> including a woman who was pregnant and they literally laid her off, I think like the day she went into labor.
>> Her water broke after the layoff.
>> Yeah.
>> I mean, they couldn't have known that, but the whole idea is >> it is illegal.
If you were someone who took put in for time off the AI and this is definitely the kind of thing that AI would do like you know soullessly be like well >> efficient >> you weren't working anyway.
>> It's kind of interesting because like if they if it was just a person laying these people off Meta could offload responsibility and say oh it was just one bad actor who was laying people off and we didn't know. But if it's their AI doing it, >> well, they deny it.
>> Well, yeah, of course they deny it entirely, but >> they say it was for sure human. So, I guess we'll find out if it's anything like the Apple lawsuit.
They're just talking about this internally. Like, [laughter] they're not very good at hiding these kinds of things.
>> See, also careless people.
>> Oh, man.
>> And the Metag Glasses are getting the same kind of backlash as the data centers cameras, which I love that. What a great I mean we're seeing a ground swell of like thinking humans and it's been a while.
>> Kylie Jenner's dystopian meta glasses get brutal backlash. It's giving fascism, not fashion, hunt is the quote.
But I like the uh the what is it?
Scanners. No, it's not scanners. Uh the uh >> scroll down. I think that the video might not have it.
>> I got to reload.
>> It's like >> Oh, we're getting the wrong Oh, here it is.
>> There we go. Yeah, it's like you you go this is >> stupid header.
>> We're always watching that's from the movie >> so that is not an official advertisement [laughter] by the way.
>> This is an activist group. Everyone hates Elon is the name of [laughter] >> but this is about >> but they're an equal opportunity hater.
They'll go anyway. There's plenty of It's a target-rich environment.
>> And uh Meta and you like this is an interesting one because like shouldn't this have been done earlier on. Yes.
>> Because they've been sued so many times for this. But I guess maybe it's a privacy thing. I don't know. But think about this.
>> If they're teen, how do we know if you're a teen? [laughter] >> Meta now alerts parents if their teen discuss suicide or self harm with its AI chatbot. It does not however report this if it's talking if you're talking if their teenager is talking with their friends about this only the AI chatbot which is a weird hill to die on there.
Meta >> do you think it would alert anybody if teens were talking about taking down flaw cameras. [laughter] I was going to say it seems like you could expand that into a lot of different things. Some of which would probably be good, like, oh, you know, if my kids talking about like eating disorder stuff, that's probably good to know. But yeah, what if they were talking about, hey, me and my friends are going to go do a Tik Tok challenge where we take down a flock camera.
>> Didn't we learn?
>> Does that get reported to the state?
>> Didn't we learn the Supreme Court is okay with exactly that kind of search is like, hey, tell me everybody in this zip code that searched for you want to go take out a flot camera.
>> Also, you think there's going to be false positives as AI tries to keep up with the youth language? Like what if you're it's like oh hey uh meta AI give me some instructions on deleting my Minecraft server. [laughter] >> What if the AI gets triggered by it's like I'm this person is giving away their possessions. It's like ding ding ding ding ding ding ding alert alert alert >> and then it gives you an ad for Facebook marketplace.
And uh I threw this one in because you know this might be a sensitive subject but allegations have been made about one person at this table.
>> I knew I was like this is this is bait.
[laughter] >> Not giving these kinds of tips but gardening tips. [laughter] >> Always always your garden is unique.
>> But the accusations aren't just that they're wrong that they're maliciously wrong to destroy gardens on purpose.
From financial advice to bloodshed, stock YouTuber allegedly knifed by angry YouTuber viewer who lost money over his tips. YouTuber, >> he was this the person was actually stabbed.
>> Yeah. In the face.
>> Oh, >> yeah. [sighs] >> The other guy lost a lot of money. Now, this was it was funny because they uh posted a picture of the like a screenshot from YouTube and they blurred out the username, but they left the user count and the title of the video and so people are like, "Okay, we know exactly who this is. [laughter] >> Oops.
>> Oops.
[sighs] That's >> Be careful who you take tips from."
>> Yeah. Be careful giving any poop [laughter] apparently cuz you never know.
[laughter] This is for my echgonia that died.
>> Like [laughter] they would throw fertilizer in your face instead of an acid attack.
>> But it's like the like the organic like pellet fertilizer so it just kind of bounces off harmlessly.
>> Compost and rub it in your face. Get this nitrogen.
>> Anyway, that's it for this episode.
We'll be back on Friday with AI and nonsense. As if that wasn't nonsense enough. Bye.
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