Blain’s Morning Porridge May 7th, 2026 – The AI Revolution is set to consume itself.“Like Saturn, the Revolution devours its own children.”Markets can’t wait for the Iran war to end – so they can get back to speculating trillions on the AI revolution. The hyperscalers expect to reap monopoly scale rents from owning AI closed-weight models and the digital infrastructure of datacentres and chips. But what if households can build their own AI capabilities cheaper and more effectively? Pop!Yesterday the stock market, yet again, hit new record highs on the back of vague mumblings from President Trump about the Iranians wanting to agree to what he says they agreed. The Iranians might have shook their heads and dismissed the proposals as a “wish-list rather than reality” – but who is listening? Hey-ho, a deal sounds like a deal is what Mr Market heard. Sooner or later, every single trader knows a deal has to happen.The market is blithely prepared to react to any positive noise as irrefutable proof an Iran settlement, peace, joy, prosperity and an immediate solution to higher energy, jet fuel, fertiliser, pharma, etc prices is just around the corner. Mr Market knows Trump is beaten and is scrambling to find an exit – which is fine. The market doesn’t care if Trump loses face, or whatever lies he will tell about winning – his words will be utterly irrelevant. The key for markets is getting ahead of the rally, rather than being left behind it. The rally has FOMO (Fear of Missing Out) tattooed on its forehead. And it’s happening now.The market wants to forget about Iran even more than Trump does.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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