Artificial intelligence is scary to a lot of people, even within the tech world. Just look at how industry insiders have co-opted a tentacled monster called a shoggoth as a semi-tongue-in-cheek symbol for their rapidly advancing work.
But their online memes and references to that creature — which originated in influential late author H.P. Lovecraft’s novella “At the Mountains of Madness” — aren’t quite perfect, according to the world’s leading Lovecraft scholar, S.T. Joshi.
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If anyone knows Lovecraft and his wretched menagerie, which includes the ever-popular Cthulhu, it’s Joshi. He’s edited reams of Lovecraft collections, contributed scores of essays about the author and written more than a dozen books about him, including the monumental two-part biography “I Am Providence.”
So, after The New York Times recently published a piece from tech columnist Kevin Roose explaining that the shoggoth had caught on as “the most important meme in A.I.,” CNBC reached out to Joshi to get his take — and find out what he thought Lovecraft would say about the squirmy homage from the tech world.
“While I’m sure Lovecraft would be grateful (and amused) by the application of his creation to AI, the parallels are not very exact,” Joshi wrote. “Or, I should say, it appears that AI creators aren’t entirely accurate in their understanding of the shoggoth.”
First of all, it’s “shoggoth,” not “Shoggoth,” Joshi said. The capitalized version of the word, as it’s spelled in the Times article, has indeed appeared in many editions of “At the Mountains of Madness,” which was first published in “Astounding Stories” in 1936, the year before Lovecraft died at age 46. But decades ago, Joshi found that Lovecraft himself made it lowercase in his manuscript and typescript of the science fiction/horror tale set in Antarctica.
“It is a species name, not a proper name,” Joshi wrote in an email to CNBC.
But that’s a minor quibble. There are bigger thematic things to consider.
Workers and others in the generative-AI field use the shoggoth meme, which often appears as a squiggly cartoon festooned with eyes and appendages, to acknowledge the mysterious, at-times frightening potential of the technology. “That some A.I. insiders refer to their creations as Lovecraftian horrors, even as a joke, is unusual by historical standards,” Roose wrote in his Times column.
The recent advancement of generative AI has already provoked references to science fiction classics such as “The Terminator” and “The Matrix,” or Harlan Ellison’s chilling science fiction story “I Have No Mouth, and I Must Scream,” all of which portray sinister artificial intelligence wiping out most of humanity.
Bringing Lovecraft’s cosmic horrors into the mix might seem excessive at this point, even as the technology creates uncanny things. For instance, a recent fake Toronto Blue Jays ad, created by a TSN producer who used text-to-video AI tech, is packed with horrifying images such as people feasting on each other’s hot dog tentacles.
The shoggoth meme’s creator, known by the Twitter handle @TetraspaceWest, said the inspiration came about because Lovecraft’s monsters are “indifferent and their priorities are totally alien to us and don’t involve humans, which is what I think will be true about possible future powerful A.I.”
Astounding Stories – February 1936 (Street & Smith) – “At the Mountains of Madness” by H. P. Lovecraft. Artist Howard V. Brown, 1936
Pierce Archive LLC | Buyenlarge | Getty Images
The meme also tries to put a happy face on the shoggoth — literally — as it usually depicts the monster sporting a smile emoji on a tentacle. That’s in reference to efforts to train language models to be nice, according to the Times. It also reads like a commentary on how futile and absurd it might be to try.
Lovecraft’s shoggoths probably wouldn’t entertain the idea of sending a friendly signal, and, in the story, they certainly aren’t indifferent to their creators, whom they try to usurp.
While artificial intelligence is based in machines, the monsters in the novella are organically bred slave creatures that develop brains and their own will, Joshi pointed out. Lovecraft describes a shoggoth as a “column of foetid black iridescence” consisting of “protoplasmic bubbles, faintly self-luminous, and with myriads of temporary eyes forming and unforming as pustules of greenish light.”
A big concern among people who fear AI is that the programs will someday become more intelligent than humans and take over. There is no parallel event in Lovecraft’s story. The shoggoths don’t end up surpassing their masters, the ancient Old Ones, “in intelligence or any other capacity,” Joshi writes. “Lovecraft clearly states otherwise.”
That’s not to say the meme totally misses the mark.
In the story, shoggoths rise up against the Old Ones in a series of slave revolts that surely contribute to the collapse of the Old Ones’ society, Joshi notes. The AI anxiety that inspired comparisons to the cartoon monster image certainly resonates with the ultimate fate of that society.
“So the general metaphor of an artificial creation overwhelming its creator does have some sort of parallel to AI (or the fears of what AI might do in the future), but it’s a fairly inexact parallel,” Joshi wrote.
But even this imperfect metaphor pairs well with what happens in Lovecraft’s story, which describes a once-grand civilization that had too many problems to fix.
In our world — a world beset by toxic wildfire smoke and water shortages, violent insurrections in democracies, and the most military combat in Europe since World War II — AI is just part of a whole. There’s a lot of hype and confusion around it, as well as positive potential. There are also real concerns, namely in how AI could act as an accelerant for bigotry and extremism, or as an engine for misinformation, or as a job killer.
In the novella, the Old Ones fall prey to a variety of threats, including attacks from rival entities who come from outer space. The story ends with insinuations of even greater mind-shattering horrors that lay beyond the mountains of madness.
In reality, humans could well scale those terrible heights with the help of AI, but only if we let it happen. Maybe we should be the ones wearing the smiley faces.
“Supply constrained,” are the two of the most important words CNBC’s Jim Cramer said he’s heard so far during earnings season and explained why this dynamic is favorable for companies.
“When you’re supplied constrained, you have the ability to raise prices, and that’s the holy grail in any industry,” he said.
Intel‘s strong earnings results were in part because of more demand than supply, Cramer suggested. He noted that the company’s CFO, David Zinsner, said the semiconductor maker is supply constrained for a number of products, and that “industry supply has tightened materially.”
Along with Intel, other tech names that are also supply constrained and performing well on the market include Micron, AMD and Nvidia, Cramer continued.
These companies don’t have enough product in part because the storage needs of artificial intelligence are incredible high, Cramer said. He added that he thinks demand has overwhelmed supply because semiconductor capital equipment companies didn’t manufacture enough of their own machines as they simply didn’t anticipate such a volume of orders.
Outside of tech, Cramer said he thinks airplane maker Boeing and energy company GE Vernova are also supply constrained, adding that he thinks the former will say it’s short on most of its planes when it reports earnings next week. GE Vernova is supply constrained with its power equipment, like turbines that burn natural gas, he continued, which is the primary energy source for the ever-growing crop of data centers.
GE Vernova and Boeing are also set to be winners because they make big-ticket items that other countries can buy from the U.S. to help close the trade deficit, Cramer added.
“In the end, we have more demand than supply in a host of industries and that’s the ticket for good stock performance,” he said. “I don’t see that changing any time soon.”
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Intel snapped a losing streak of six straight quarterly losses and returned to profitability in the third quarter.
In its first earnings report since the Trump administration acquired a 10% stake in the company, the U.S. chipmaker posted strong revenue, noting robust demand for chips that it expects to continue into 2026.
Client computing revenue, which includes chips for PCs and laptops, grew 5% year over year, benefiting from PC market stabilization and artificial intelligence PC prospects.
CEO Lip-Bu Tan said in a call with analysts Thursday that artificial intelligence “is a strong foundation for sustainable long-term growth as we execute.”
The chip strength and demand were bright spots, but there were areas of concern as well, with the company’s foundry business still needing a big break.
Here are three takeaways from the chipmaker’s Q3 report:
Cash flow
“We significantly improved our cash position and liquidity in Q3, a key focus for me since becoming CEO in March,” Tan said on a call with analysts Thursday.
Intel landed an $8.9 billion investment from the U.S. government in August, along with $2 billion from Softbank, but has not yet received the $5 billion tied to a deal with Nvidia. The company expects that deal to close by the end of Q4.
With all of those transactions completed, plus the Altera sale, Intel will have $35 billion in cash on hand, CFO David Zinser told CNBC.
The U.S. government is the company’s biggest shareholder, and Intel stock is up more than 50% since Aug. 22, when Commerce Secretary Howard Lutnick announced the deal.
“Like any shareholder, we have to keep in touch with them,” Zinser said of the U.S. stake. “We don’t tell them how the numbers are going before the quarter. We generally talk to them like Fidelity,” another Intel shareholder.
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Intel 3-month stock chart.
Foundry
The firm’s foundry remains a work in progress.
Revenue fell 2% over the year before, and it has yet to land a major customer.
Intel now has two fabs running 18A nodes, which are designed for AI and high-performance computing applications.
“We are making steady progress on Intel 18A,” Tan said of its latest chip technology. “We are on track to bring Panther Lake to market this year.”
Zinser said the more advanced 14A nodes won’t be put in supply until the company has “real firm demand.”
Old stuff still selling
Zinser said the company’s older chipmaking processes, or nodes, have continued to do well, “and that was probably the part that was more unexpected.”
Zinser said the chipmaker met some of the central processing unit (CPU) demand with inventory on hand, but they will be behind in Q1, “probably Q2 and maybe in Q3.”
The supply crunch has been with older Intel 10 and 7 manufacturing technologies.
Many customers are opting for less advanced hardware to refresh their operating systems, demonstrating enterprises aren’t waiting for cutting-edge chips when proven technology gets the job done.
Earnings season next week goes into overdrive as more than 150 companies in the S & P 500 report their quarterly results. Most of the “Magnificent Seven” tech firms are among them. With Tesla already out and Nvidia not out until Nov. 19, that leaves Alphabet and Club names Amazon , Apple , Meta Platforms , and Microsoft . In total, 10 companies in the portfolio are on next week’s list. Here is where Jim Cramer stands on each. Tuesday Corning reports its third-quarter earnings before Tuesday’s open. The specialty glass maker is our newest stock in the portfolio. We started a small position a couple of weeks ago to give us some room to buy on a pullback. Jim expects the company’s results are “going to be blowout” fueled by surging sales in its optical communication enterprise business tied to growing AI demand. “If you don’t have a position in Corning, you probably want to put some on before and after,” Jim said. Wednesday Boeing delivers its third-quarter results before Wednesday’s open. We’re looking out for what the non-cash charge will be for the 777x program, the company’s next-generation, long-haul jet. The aerospace giant will be raising its production of the 737 Max, making room for more deliveries and stronger free cash flow. The management team should be “talking about a series of orders,” coming in, Jim said, adding that “if you don’t have any Boeing, it’s not too late to buy.” Starbucks reports its fiscal fourth quarter after Wednesday’s closing bell. Jim believes this will be the “last bad quarter” for the coffee giant, which is still in the midst of a turnaround headed by CEO Brian Niccol, who did wonders when he led Chipotle . Jim interviewed Niccol last week and came away optimistic about the company’s trajectory in 2026. Meta is out Wednesday evening with third-quarter earnings. The social media giant is “getting a lot of advertising business, doing a lot of things very right,” Jim said. The mega cap tech giant has been at the forefront of the most talked about theme this year – and likely next — which companies will be among the AI winners. Microsoft reports its fiscal 2026 first quarter, also after the close Wednesday. Jim sees upside to the numbers, citing the Windows refresh driven by personal computer shipments and its cloud business Azure, which is “going quite well” and likely taking share in the cloud computing market. Thursday Bristol Myers Squibb reports its third quarter before the opening bell Thursday. Jim thinks the biopharmaceutical company’s results “will disappoint.” We invested in the company for the promise of Cobenfy, a prescription used to treat schizophrenia. Unfortunately, a major drug trial for a new indication went poorly. Barring any positive Cobenfy news, our thesis must be reassessed. Bristol Myers shares have lost 22% year to date. Drugmaker Eli Lilly also reports before the open. Jim said, “We’re not going to see anything rally” from the Mounjaro and Zepbound maker unless there’s a positive update on the cost of GLP-1 drugs. “That’s unfortunate because I think that [Lily] is going very, very well,” Jim said. Amazon , out with Q3 results after Thursday’s close, is going to have to show revenue acceleration “back to 2021” levels in its cloud business, Jim noted. This would help Amazon Web Services shake off the narrative that its cloud growth has seen better days. Apple also reports Thursday evening. Jim feels confident in the iPhone maker’s fiscal fourth quarter, given signals that the new iPhone models are selling better than many had expected. The stock surged to an all-time intraday high Monday after positive commentary from Wall Street analysts and upbeat iPhone demand data. Friday Linde reports its third-quarter before Friday’s open. Jim is comfortable heading into the quarter after the industrial gas giant’s recent upbeat fireside chats with analysts. Jim said he “likes that situation,” referring to the company as “one of the most reliable stocks we own for the Club.” (Jim Cramer’s Charitable Trust is long GLW, BA, SBUX, META, MSFT, BMY, LLY, AMZN, AAPL, LIN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.