News Rundown 3/7/25: The AI Boom, Political Shifts & Canada’s Brain Drain—What You Need to Know

Matt Cohen and John Ruffolo dive into the growing exodus of Canadian talent to the U.S., breaking down why top founders and engineers are choosing Silicon Valley over homegrown opportunities. They discuss OpenAI’s latest move to charge up to $20,000 per month for AI-powered research agents and how companies are rethinking hiring in light of these powerful tools. The conversation also covers the controversial CoreWeave IPO, highlighting its rapid $1.9B revenue surge, heavy reliance on Microsoft, and whether it signals a coming shake-up in cloud computing. On the political front, they analyze the potential for an early Canadian election, shifts in party leadership, and how economic policies—like capital gains tax hikes—are driving entrepreneurs out of the country.

Canada’s Tech Exodus: Why Founders Are Flocking to the U.S. (07:00)

A striking rise in Canadian emigration has raised concerns about the country’s ability to retain top talent. In 2024, 81,601 Canadians left the country, the highest number since 2017—half of them from Ontario.

* Capital gains tax hikes pushing high-net-worth individuals and founders to relocate.

* U.S. venture capital firms providing better funding opportunities for Canadian startups.

* YC founder exodus: More Canadian founders are moving to the U.S. post-Y Combinator Demo Day, as confirmed by YC CEO Gary Tan.

John Ruffolo’s take:

* Canada risks losing its top tech talent permanently if it doesn’t address the capital and policy gaps driving this migration.

* Founders aren’t leaving out of convenience—it’s about better market access, capital, and scaling opportunities.

OpenAI’s $20K/Month AI Agents: A Game-Changer? (18:00)

OpenAI is rolling out three tiers of AI-powered assistants, capable of advanced research, software development, and business strategy—at a hefty price tag.

Pricing breakdown:

* $2K/month: Handles advanced knowledge worker tasks.

* $10K/month: AI for software development.

* $20K/month: PhD-level AI agents for deep research.

Why this matters:

* AI-powered coding tools like Cursor.dev have already grown to $100M ARR in 18 months.

* Founders are increasingly opting for AI engineers over hiring multiple full-time developers.

* This signals a shift in the labor market, potentially disrupting high-paid professional roles in tech, research, and consulting.

CoreWeave’s $2B Revenue IPO—Boom or Bust? (12:00)

CoreWeave, a cloud computing startup that stockpiled NVIDIA GPUs early, is racing toward a high-profile IPO.

Key numbers:

* Revenue skyrocketed from $16M in 2022 to $1.9B in 2023.

* Microsoft accounts for 62% of its revenue, sparking concerns over customer concentration.

* The company holds $11B in debt, raising questions about profitability.

* Founders cashed out $500M pre-IPO, raising red flags.

John Ruffolo’s analysis:

* This looks like a high-risk, low-margin business that may struggle to justify its valuation.

* Heavy debt financing and reliance on Microsoft contracts make it a shaky bet.

* If public markets reject CoreWeave, it could be a warning sign for other AI and cloud IPOs.

Will Canada See an April Election? (03:00)

With Canada’s Liberal Party leadership race heating up, rumors suggest an election could be called as early as March 16, with a vote on April 22.

* The Liberals want a short election to limit Conservative fundraising advantages.

* Mark Carney is positioned as the Liberal frontrunner, but he doesn’t currently hold a parliamentary seat.

* Coalition talks between Liberals, NDP, and the Green Party could reshape Canada’s political landscape.

Projected outcomes:

* Conservative majority is still likely, but the margin has narrowed.

* A left-wing coalition could prevent a Conservative landslide.

The Bigger Picture: Where is Canada Headed?

From AI disruption and talent migration to political uncertainty, this episode of Tank Talks dives into the forces reshaping Canada’s future.

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