New Stack: Block, GPUs, and a Stable Macro Backdrop.

Happy Friday!

We are gearing up for earnings season over the 7-45 days. So excited on that. This week we show how AI is no longer just about chips and models. It’s about how those models are being used in payments, advertising, and daily transactions. Block, one of our holdings had big announcements around this. At the same time, the broader AI ecosystem keeps scaling. GPU performance is improving faster than costs are rising, inference prices keep falling, and the user base across Gemini, ChatGPT, and Claude keeps expanding.

And the macro data continues to cooperate. Job openings have stabilized, workforce activity is perking up, and fewer than half of U.S. states are seeing higher unemployment. A soft-landing economy combined with lower rates and a cost-efficient AI wave is a powerful setup for the next expansion cycle.

Let’s get into the data!

Here is the summary if you want just that:

• Block goes all in on AI and Bitcoin.

• Workforce activity picking up???

• AI + Humans = better ROI

• 800M users on ChatGPT

Lets start with one of our companies and the announcements they made, then move into state of AI and macro.

This week Block’s the owner of Square and Cash App released their latest products. First the company is moving faster then ever on product, balancing speed and quality. I will be with the team in a month in San Francisco at their investor day. If you are around ping me!

Overall though the company is transforming from a transaction processor into a data platform for small business intelligence using AI models to read and understand a companies data to turn it into insights. For example “Order Guide” automates vendor purchasing, their AI-driven phone ordering lets sellers handle calls end-to-end, and dashboard can be made in seconds.

They also announced Cash App’s “Neighborhoods”a feature/product that connects local buyers and merchants. Lastly they announced Bitcoin acceptance at zero fees which deepens merchant adoption.

We are pumped about direction of Block right now.

Speaking of AI… the common belief is that it replaces human labor. Makes sense at first glance.

But data shows a different story: human + AI often can outperform either alone.

AI-only ads cost a fraction of human-produced ones, yet hybrid campaigns, where humans guide, edit, or enhance AI output, deliver the highest ROI.

Efficiency meets creativity. That’s the real edge I'd say…

More on AI. There was a reddit chat showing how much token usage is being consumed and by which company. AI adoption is pretty wide spread with companies like Duolingo, Indeed, Shopify and even T-Mobile as leaders in token usage.

How big is ChatGPT now? It’s scaled from roughly 30 million to nearly 800 million users in under two years. AI adoption is compounding globally, and to put that in perspective, that’s about the same user base as Snapchat, which is valued around $10–15 B, versus OpenAI at roughly $500 B.

They’re very different businesses and shouldn’t be valued the same, but it’s a striking comparison when you look purely at user scale.

Let’s turn to Gemini from Google. They’re moving slowly… then quickly.

Gemini’s traffic has tripled in the last six months, now topping 1 billion monthly visits. Google is clearly converting its massive distribution reach into AI scale.

OpenAI still leads, but competitors are catching up fast.

That’s likely why the company is pushing the limits of compute and resources as big players move in on its turf. Market share has slipped from roughly 85% to around 70% as Gemini and Claude continue to scale.

ChatGPT maintains unmatched loyalty with 82 percent of users visiting exclusively. Gemini and Claude lag but are gaining stickiness.

Now everyone is worried about the moves being made in AI. And yes this web shows just how connected it ha became. Nvidia, OpenAI, AMD, and Oracle now form an interconnected web of capital and compute. Money is looping around and the size and scale of the commits are questionable.

Now lets get into some macro really quick. Workforce activity is trending up, and fewer than half of U.S. states show rising unemployment. The economy remains stable enough and some data shows a pick up in activity vs the opposite.

Job openings are slightly down Y/Y but steadying after a long decline. Labor demand is normalizing, not collapsing.

That’s all for this week.

AI continues to dominate the conversation, and we’re seeing our companies take advantage, building on top of the large proprietary data platforms they’ve spent years developing.

The macro backdrop remains stable, with early signs that the workforce is shifting toward a healthier balance ahead. Lets see though with so many moving parts!

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About Avory & Co.

Investing where the world is headed. 

Avory specializes in high-conviction equity strategies, emphasizing Secular Growth and Transformation Stories driven by exceptional teams. Data guides decisions. We cater to high net worth investors, family offices, and institutional investors. Note: This information doesn't constitute a recommendation to buy or sell any mentioned securities. Avory is based in Miami, Florida with clients all across the globe.

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Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.