News & Updates
The latest news and updates from companies in the WLTH portfolio.
Commerce chief signals end to Anthropic security rift ahead of potential IPO
Investing.com -- US Commerce Secretary Howard Lutnick signaled a resolution to months of regulatory friction with Anthropic PBC, stating in a Bloomberg Television interview that the artificial intelligence developer has aligned its security stance with the Trump administration. Speaking on the sidelines of a Group of 20 technology summit in North Carolina, Lutnick indicated that executive intervention helped bridge policy differences, clearing a path for closer coordination between federal officials and the AI firm. The diplomatic thaw follows a brief period of heightened scrutiny in June, when the Commerce Department temporarily restricted exports of Anthropic's flagship Fable 5 and Mythos 5 models over national security concerns. Those restrictions were rescinded two weeks later after the startup implemented revised safeguard protocols that satisfied federal oversight standards. The easing tension arrives at a critical juncture as Anthropic lays early groundwork for an initial public offering that market observers anticipate could rival or exceed SpaceX's record-setting public debut. In a visible sign of improved relations, Anthropic co-founder Tom Brown appeared alongside Lutnick at the G20 summit, publicly endorsing administration efforts to accelerate domestic data center construction and power infrastructure. It remains unclear, however, whether the political alignment with Commerce signals a broader reconciliation across the federal government, particularly at the Department of Defense. The Pentagon previously designated Anthropic a supply-chain risk and halted military deployment of its technologies following a rift over the startup's insistence on mandatory safety guardrails. Anthropic achieved a pivotal legal breakthrough last week when a federal judge in San Francisco ruled in its favor, ordering the government to lift the military procurement restrictions. As the company continues its pre-IPO positioning, institutional investors will be monitoring whether this combination of courtroom success and executive-level detente can establish a predictable regulatory environment for its growth trajectory.
Anthropic's $35 Billion Cloud Deal Comes With an Nvidia Twist
This article first appeared on GuruFocus. Nvidia Corp. (NVDA, Financials), the leading artificial intelligence chipmaker, is taking a deeper role in Anthropic's latest infrastructure expansion than simply supplying GPUs. Anthropic has signed a cloud-computing deal worth $35 billion with Nvidia-backed provider Lambda, according to The Wall Street Journal. Nvidia will supply chips for the project and is also reportedly holding the lease on the Texas data center supporting the agreement. The facility is being developed by Hut 8 in Nueces County, Texas. For investors, that structure is the bigger story. Nvidia is increasingly using its financial strength to help secure infrastructure for customers that ultimately consume its chips. That can accelerate AI capacity growth, but it also means Nvidia is taking on a larger role in financing the ecosystem around its own products. The arrangement shows how tightly linked AI chip demand, data-center construction and cloud financing have become. Anthropic is one of the largest developers of frontier AI models, making the $35 billion commitment another sign that spending on AI infrastructure remains enormous. The deal also gives Hut 8 exposure to one of the biggest announced AI cloud commitments in the market. Investors will be watching whether Nvidia continues using its balance sheet and leasing arrangements to support other large AI customers as the industry races to add computing capacity.
Cathie Wood Just Bought $17 Million of Cerebras Stock. Wall Street Sees 59% Upside.
Cathie Wood is doubling down on Cerebras Systems (CBRS) at a time when the artificial intelligence (AI) chip stock is struggling to regain its footing. Ark Invest bought another 93,290 Cerebras shares on Aug. 25 across multiple exchange-traded funds (ETFs), worth roughly $17.2 million based on the reported purchase value. That follows additional buying earlier in August. The timing is notable. Shares of Cerebras have fallen sharply from their May peak and remain extremely volatile. CBRS stock is down 7% over the past month and 26% over the past three months. The stock has swung between a 52-week high of $386.34 and a low of $160.81. More News from Barchart Why is Wood buying the dip? Let's take a closer look. Cerebras Stock Is Still a High-Growth AI Bet The answer starts with Cerebras' positioning in the fast-growing AI inference market. Unlike Nvidia (NVDA), which dominates the broader GPU market, Cerebras focuses on wafer-scale computing designed to deliver extremely fast AI inference. That could become increasingly important as businesses move from training AI models toward running them in real time. Cerebras has also been expanding beyond selling AI accelerators. It is building an inference cloud business and working with major technology companies including OpenAI, Amazon's (AMZN) Amazon Web Services (AWS), and Advanced Micro Devices (AMD). The company recently unveiled its CS-4 system, which it says can deliver up to 30 times faster inference than GPU-based alternatives. Cerebras is also working with AMD on a disaggregated inference architecture that can deliver up to five times higher throughput per watt in certain configurations. That gives Wood a larger thesis than simply betting on another chip company. She is effectively betting that AI inference becomes one of the biggest infrastructure markets of the next decade. Cerebras' Valuation Leaves Little Room for Error The biggest risk is valuation. Cerebras currently has a market capitalization of about $42.5 billion and annual sales of roughly $510 million. The price-to-sales (P/S) ratio is 60 times, an enormous premium for a company that is still losing money on a GAAP basis.
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Anthropic (ANTH.PVT) has signed a $35 billion cloud deal with Lambda (LAMD.PVT), according to Wall Street Journal reporting. Lambda is backed by Nvidia (NVDA). Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape.
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape. Today's deal is Anthropic signing a 35 billion cloud deal. It's backed by Nvidia, but it's with an Nvidia backed company called Lambda and Hut 8 is going to be the developer of this data center. So there's a lot of fingers in the pie for this one. Which I had to I had to draw it out. I had to draw it out for today. There you go. That's a good use of your phone. I couldn't I couldn't I was like, how is this? It literally is a circle. Okay, so what so what so I wish we had a graphic of that. I don't know if I have this correctly, but you have Anthropic, right? Give me 35 billion to Lambda, right? for the compute, right? Lambda giving money to Hut 8 for the for the data center. You have Nvidio over here giving money to Hut 8 for investment, right? which they do. Hut 8 paying Hut 8 paying for the chips, right? And holding the lease. And also to or leasing it. I don't know who knows how that how this part works. And then of course, Nvidia investing in Anthropic. The whole circle is complete, right? Yes. And also invest like Nvidia's at the center because it's investing in all of these things and handing out money to all of these It supplies the chips. It backs the provider. It holds the least. But I had to draw it out because it just was again, we were the circular deals can be kind of confusing if you don't actually look it at it schematically. Right. Um and then you're saying, why is there one company in the middle of everything? Yeah. Right. Yeah. Well, every few weeks, one of the big investment banks comes out with a new chart of all of Nvidia's deals it's made kind of mapping the whole picture. and the web just keeps getting more and more and more complex. We were meeting this morning, kind of going over what we were going to talk about today. You made what I thought was a very smart point that with these deals, we're getting to a point of dog bites man. Oh, yeah, yeah, yeah. But my worry with the dog bites man approach is like, sure, it's a Tuesday, we have another billion dollar deal. Does it risk complacency that we're going to start missing things if we're not really paying as much attention as we were six months ago? Um, I guess. I mean, missing what? What are we looking for? Because the risk is growing, the leverage is growing, the circularity to process point of it all is growing. It's getting more and more and more tangled and I worry that we risk losing sight to your point. Who knows how any of this actually who can actually draw this out on a map of how this all looks? So I look at it from like the auto point of view, because I always do that, right? So it's okay, so, if you're GM, right? You have a captive finance arm, okay? I'm going to finance my customer's cars. Great. That's not too bad. But I think the the little wrinkle is if it's almost as if the customer, okay, so I'm I'm I'm financing the customer, he buys my product, and then there's some other third party that I'm also investing in that holds the debt, you know, like it just it seems like it's more more convoluted than just vendor financing, right?
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Anthropic (ANTH.PVT) has signed a $35 billion cloud deal with Lambda (LAMD.PVT), according to Wall Street Journal reporting. Lambda is backed by Nvidia (NVDA). Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape.
Hut 8 Rises on Anthropic's $35 Billion Lambda Deal
This article first appeared on GuruFocus. Hut 8 (NASDAQ:HUT) rose 2.21% premarket after Reuters reported that Anthropic signed a $35 billion cloud computing deal with Lambda, an Nvidia (NASDAQ:NVDA) backed cloud provider, for capacity at a Texas data center Hut 8 is developing. The site covers about 350 megawatts, according to a person familiar with the matter. Nvidia was down 1.24%. Nvidia would hold the lease on the data center. Hut 8, a bitcoin miner that has moved into AI infrastructure, said in July it had signed a 15-year lease with an unnamed investment-grade customer worth $19.6 billion over the base term, and later Nvidia was identified as the tenant at the company's 1-gigawatt Beacon Point campus. Anthropic said last week it would spend $45 billion renting compute from Nscale's West Virginia campus. The Lambda capacity is meant to serve demand for its Claude products, including the Claude Code tool, ahead of a planned listing.
Hut 8 stock is a winner in a new deal between Anthropic and Nvidia-backed Lambda
Big dealmaking continues at a rapid clip for AI infrastructure play Hut 8 (HUT). Hut 8 is developing the data center in Nueces County, Texas, that will be leased by Nvidia (NVDA) as part of a new $35 billion cloud-computing deal between Anthropic (ANTH.PVT) and Nvidia-backed Lambda, according to a new report from the WSJ. Hut 8 shares rose as much as 4% in premarket trading on Tuesday. "We have many projects that we are at late stage on," Hut 8 CEO Asher Genoot said on Yahoo Finance's Opening Bid in late August (video above). "We have early-stage [projects] across the whole pipeline. We have 11 that we've disclosed publicly. That doesn't include any behind-the-meter opportunities that we're working on. That doesn't include any M&A opportunities. So we have a ton of projects we're working on." Hut 8 has a remarkable transformation story, evolving from a bitcoin miner to one of the most important AI data center operators in North America. Its deal flow -- now including one with Nvidia -- is starting to flesh this out. The first blockbuster deal came in December 2025 when Hut 8 signed a 15-year, $7 billion lease with cloud infrastructure provider Fluidstack for 245 megawatts of capacity at its River Bend campus in Louisiana. Google (GOOG) is acting as a financial backstop for the entire term. Then in May, Hut 8 scored an even bigger deal -- a 15-year, $9.8 billion lease at its Beacon Point campus in Nueces County, Texas, covering 352 megawatts of AI factory capacity. The deal sports three five-year renewal options that could push the total contract value to $25.1 billion. "We regard HUT's execution on its pipeline, including its recent announcement of a new contract for Phase II of its Beacon Point AI data center project, as validation of the 'Power First' thesis that CEO Asher Genoot has articulated, in which the company's core competency is the repeatable conversion of scarce power into long-duration, contracted, financeable infrastructure," Benchmark analyst Mark Palmer wrote in a note. Palmer rated Hut 8 shares a Buy with a $195 price target, which assumes about 143% upside from current levels. Of the 18 sell-side analysts who cover Hut 8, all rate the stock a Buy, according to Yahoo Finance AlphaSpace analysis. Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].
Sundar Pichai Says Alphabet Can't Build AI Capacity Fast Enough, and Anthropic Has Secured 5 Gigawatts of It.
Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) said something striking on its second-quarter earnings call in July. Even after committing to as much as $205 billion of capital spending this year, the company still can't build artificial intelligence (AI) computing capacity as fast as customers want it. "[W]e continue to be supply constrained -- a sign of momentum and rapid adoption," CEO Sundar Pichai said in his remarks on the quarter. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Yet Alphabet has agreed to hand multi-gigawatt blocks of that scarce capacity to a fast-growing outside customer: Anthropic, the AI company behind the Claude models. And a look at Alphabet's underlying business performance shows why the company is racing to sell its capacity to major customers like Anthropic -- even if it's scarce. Image source: Alphabet Inc. Selling scarce capacity is a great business Google Cloud, the segment that sells cloud computing to outside customers, grew revenue 82% year over year to $24.8 billion in the second quarter. That was up from 63% growth in the first quarter. The profit is growing even faster than the revenue. Google Cloud's operating income more than tripled year over year, from $2.8 billion to $8.8 billion -- after reaching $6.6 billion in the first quarter. The segment's operating margin came in at about 36%, versus about 21% in the year-ago quarter and 33% in the first quarter of this year. And the contracted work keeps piling up. Pichai said cloud backlog (future revenue from signed contracts) grew to about $514 billion in the second quarter, up from $462 billion at the end of the first quarter. That backlog is now more than four times the revenue Alphabet's entire business produced last quarter. How much of it is Anthropic? Alphabet doesn't break out the number, but the disclosed pieces -- even if they lack financial details -- are big. Last October, Anthropic agreed to expand its use of Google Cloud in a deal giving it access to up to 1 million of Google's tensor processing units (TPUs), the AI chips Google designs in-house, with well over a gigawatt of capacity coming online in 2026. Google Cloud said the agreement was worth tens of billions of dollars. This spring, the relationship got much bigger. In early April, Anthropic secured multiple gigawatts of next-generation TPU capacity from Google and chip partner Broadcom, coming online starting in 2027 -- about 5 gigawatts in all, CNBC reported. Anthropic will access that capacity through Broadcom, according to a Broadcom securities filing. Weeks later, Google agreed to invest up to $40 billion in Anthropic itself, putting in $10 billion right away with as much as $30 billion more tied to performance milestones.
Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda, source says
Aug 31 (Reuters) - Anthropic has signed a cloud-computing deal worth $35 billion with Lambda, a cloud provider backed by Nvidia, a source familiar with the matter said on Monday. The deal will bring online Nvidia capacity to meet growing demand for Anthropic's Claude AI, the source said. The news was first reported by the Wall Street Journal. (Reporting by Chandni Shah in Bengaluru and Natalia Bueno Rebolledo in Mexico City; Editing by Subhranshu Sahu)
Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda, source says
Aug 31 (Reuters) - Anthropic has signed a cloud-computing deal worth $35 billion with Lambda, a cloud provider backed by Nvidia, a source familiar with the matter said on Monday. The deal will bring online Nvidia capacity to meet growing demand for Anthropic's Claude AI, the source said. The news was first reported by the Wall Street Journal. (Reporting by Chandni Shah in Bengaluru and Natalia Bueno Rebolledo in Mexico City; Editing by Subhranshu Sahu)
Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda, source says
Aug 31 (Reuters) - Anthropic has signed a cloud-computing deal worth $35 billion with Lambda, a cloud provider backed by Nvidia, a source familiar with the matter said on Monday. The deal will bring online Nvidia capacity to meet growing demand for Anthropic's Claude AI, the source said. The news was first reported by the Wall Street Journal. (Reporting by Chandni Shah in Bengaluru and Natalia Bueno Rebolledo in Mexico City; Editing by Subhranshu Sahu)
Anthropic Seals $35 Billion Cloud Deal With Nvidia-Backed Lambda
(Bloomberg) -- Anthropic PBC agreed to a $35 billion computing deal with Lambda, a cloud provider backed by Nvidia Corp., part of an effort to quickly expand its AI capacity, according to a person familiar with the matter. Most Read from Bloomberg Infrastructure company Hut 8 is developing the Texas data center involved in the project, said the person, who asked not to be identified because the discussions are private. The Wall Street Journal previously reported on the agreement, saying that Nvidia would hold the lease on the data center, which is in Nueces County, Texas. The deal is just the latest AI computing agreement tied to Nvidia, the world's most valuable business and the leading provider of AI chips. The company has been using its financial resources to expand access to computing infrastructure, which, in turn, should increase demand for its technology. Anthropic, meanwhile, has emerged as one of the most significant customers for data center power. The Claude chatbot maker last week agreed to spend $45 billion to rent capacity from Nscale in West Virginia. In recent months, it has also signed cloud deals for $50 billion with neocloud Fluidstack Ltd. and $45 billion with Elon Musk's SpaceX. A representative for Anthropic declined to comment. Nvidia, Lambda and Hut 8 didn't immediately respond to requests for comment. Lambda is in talks to raise as much as $3 billion, Bloomberg reported last week. The company has discussed a valuation of as much as $12 billion or more, according to people familiar with the talks. Lambda raised more than $1.5 billion in a November funding round. The company also reached an agreement with Microsoft Corp. last year to deploy AI infrastructure that would be powered by tens of thousands of Nvidia processors. --With assistance from Lynn Doan and Ian King. Most Read from Bloomberg Businessweek
Anthropic Seals $35 Billion Cloud Deal With Nvidia-Backed Lambda
(Bloomberg) -- Anthropic PBC agreed to a $35 billion computing deal with Lambda, a cloud provider backed by Nvidia Corp., part of an effort to quickly expand its AI capacity, according to a person familiar with the matter. Most Read from Bloomberg Infrastructure company Hut 8 is developing the Texas data center involved in the project, said the person, who asked not to be identified because the discussions are private. The Wall Street Journal previously reported on the agreement, saying that Nvidia would hold the lease on the data center, which is in Nueces County, Texas. The deal is just the latest AI computing agreement tied to Nvidia, the world's most valuable business and the leading provider of AI chips. The company has been using its financial resources to expand access to computing infrastructure, which, in turn, should increase demand for its technology. Anthropic, meanwhile, has emerged as one of the most significant customers for data center power. The Claude chatbot maker last week agreed to spend $45 billion to rent capacity from Nscale in West Virginia. In recent months, it has also signed cloud deals for $50 billion with neocloud Fluidstack Ltd. and $45 billion with Elon Musk's SpaceX. A representative for Anthropic declined to comment. Nvidia, Lambda and Hut 8 didn't immediately respond to requests for comment. Lambda is in talks to raise as much as $3 billion, Bloomberg reported last week. The company has discussed a valuation of as much as $12 billion or more, according to people familiar with the talks. Lambda raised more than $1.5 billion in a November funding round. The company also reached an agreement with Microsoft Corp. last year to deploy AI infrastructure that would be powered by tens of thousands of Nvidia processors. --With assistance from Lynn Doan and Ian King. Most Read from Bloomberg Businessweek
Kraken Robotics Inc (KRKNF) (Q2 2026) Earnings Call Highlights: Record Orders and Covelya ...
This article first appeared on GuruFocus. * Revenue: Consolidated revenue for Q2 totaled CAD27 million, including product revenue of approximately CAD17 million and service revenue of over CAD10 million. * Revenue Growth: Excluding a CAD1.5 million impact from a change in scope on an integration project, consolidated revenue increased approximately 10% year-over-year. * Product Revenue Growth: Excluding the scope change, product revenue grew 11% in the quarter and 25% for the first half of the year. * Service Revenue Growth: Service revenue grew 6% in the quarter year-over-year, or 9% for the first half of the year. * Gross Profit: Gross profit increased to over CAD16 million in Q2. * Gross Margin: Gross profit margin remained strong at 59%, up slightly over the prior year. * Adjusted EBITDA: Adjusted EBITDA increased slightly to CAD5 million, with an adjusted EBITDA margin of 18%. * Adjusted EBITDA Growth: Excluding the scope change, adjusted EBITDA margins would have been 20%, with adjusted EBITDA growth of 26%. * Capital Expenditures: Capital expenditures and tangible assets purchased totaled just over CAD9 million in Q2, compared to CAD6 million in the prior year. * Cash Position: Cash position was just over CAD91 million at quarter-end. * Working Capital: Working capital was CAD152 million at quarter-end. * Long-Term Debt: Long-term debt and obligations and lease liabilities were approximately CAD40 million. * 2026 Guidance: The company expects annual revenues of CAD209 million to CAD320 million, adjusted EBITDA between CAD65 million and CAD75 million, and capital expenditures in the range of CAD27 million to CAD33 million. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points * Closed transformative acquisition of Covelya Group, significantly expanding technological capabilities and total addressable market. * Strong product demand with CAD355 million in product orders year-to-date, including CAD27 million in incremental orders since July. * Gross profit margin remained strong at 59%, up slightly year-over-year. * Expanded customer base with new long-term master supply agreement with an XL UUV manufacturer and added nearly 10 new battery OEM customers. * Strong balance sheet with cash of CAD91 million and minimal net debt post-acquisition.
Kraken Robotics Inc (KRKNF) (Q2 2026) Earnings Call Highlights: Record Orders and Covelya ...
This article first appeared on GuruFocus. * Revenue: Consolidated revenue for Q2 totaled CAD27 million, including product revenue of approximately CAD17 million and service revenue of over CAD10 million. * Revenue Growth: Excluding a CAD1.5 million impact from a change in scope on an integration project, consolidated revenue increased approximately 10% year-over-year. * Product Revenue Growth: Excluding the scope change, product revenue grew 11% in the quarter and 25% for the first half of the year. * Service Revenue Growth: Service revenue grew 6% in the quarter year-over-year, or 9% for the first half of the year. * Gross Profit: Gross profit increased to over CAD16 million in Q2. * Gross Margin: Gross profit margin remained strong at 59%, up slightly over the prior year. * Adjusted EBITDA: Adjusted EBITDA increased slightly to CAD5 million, with an adjusted EBITDA margin of 18%. * Adjusted EBITDA Growth: Excluding the scope change, adjusted EBITDA margins would have been 20%, with adjusted EBITDA growth of 26%. * Capital Expenditures: Capital expenditures and tangible assets purchased totaled just over CAD9 million in Q2, compared to CAD6 million in the prior year. * Cash Position: Cash position was just over CAD91 million at quarter-end. * Working Capital: Working capital was CAD152 million at quarter-end. * Long-Term Debt: Long-term debt and obligations and lease liabilities were approximately CAD40 million. * 2026 Guidance: The company expects annual revenues of CAD209 million to CAD320 million, adjusted EBITDA between CAD65 million and CAD75 million, and capital expenditures in the range of CAD27 million to CAD33 million. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points * Closed transformative acquisition of Covelya Group, significantly expanding technological capabilities and total addressable market. * Strong product demand with CAD355 million in product orders year-to-date, including CAD27 million in incremental orders since July. * Gross profit margin remained strong at 59%, up slightly year-over-year. * Expanded customer base with new long-term master supply agreement with an XL UUV manufacturer and added nearly 10 new battery OEM customers. * Strong balance sheet with cash of CAD91 million and minimal net debt post-acquisition.
Anthropic's $7 Billion Chip Plan Takes a New Turn
This article first appeared on GuruFocus. Anthropic seems bent on reducing its reliance on externally sourced AI processors, even if a big purchase doesn't materialize.Reuters reported that the developer of Claude had been in talks to acquire AI chip startup MatX for almost $7 billion, although the discussions then pivoted to a possible cooperation.MatX was formed by ex-Google tensor processing unit engineers and is building chips to train massive AI models. The business is currently raising further money at a valuation of around $4 billion. Anthropic's appeal is simple.The corporation might get more control over cost and performance by building custom silicon, as demand for Claude increases. Anthropic has already recruited veterans from Google and OpenAI and grown its internal silicon team.Meanwhile, the corporation is spending much on outside computers. Anthropic aims to spend $36 billion on Google AI chips and has signed a $45 billion cloud-computing deal with Nscale, highlighting the huge cost of securing enough infrastructure to train and run frontier models.Another route for Anthropic to develop out more of that tech on its own might be a MatX relationship. The acquisition may have hit a snag, but Anthropic's push into bespoke chips certainly hasn't.
Anthropic's $7 Billion Chip Plan Takes a New Turn
This article first appeared on GuruFocus. Anthropic seems bent on reducing its reliance on externally sourced AI processors, even if a big purchase doesn't materialize.Reuters reported that the developer of Claude had been in talks to acquire AI chip startup MatX for almost $7 billion, although the discussions then pivoted to a possible cooperation.MatX was formed by ex-Google tensor processing unit engineers and is building chips to train massive AI models. The business is currently raising further money at a valuation of around $4 billion. Anthropic's appeal is simple.The corporation might get more control over cost and performance by building custom silicon, as demand for Claude increases. Anthropic has already recruited veterans from Google and OpenAI and grown its internal silicon team.Meanwhile, the corporation is spending much on outside computers. Anthropic aims to spend $36 billion on Google AI chips and has signed a $45 billion cloud-computing deal with Nscale, highlighting the huge cost of securing enough infrastructure to train and run frontier models.Another route for Anthropic to develop out more of that tech on its own might be a MatX relationship. The acquisition may have hit a snag, but Anthropic's push into bespoke chips certainly hasn't.
US judge blocks Pentagon's Anthropic blacklisting
August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
Why X-Energy (XE) Shares Just Moved, And What Is Drawing Attention?
X-Energy (XE) released its second quarter 2026 earnings on August 13, reporting revenue of US$54.6 million and a net loss of US$59.09 million, or US$0.21 per share. The latest second quarter earnings release comes after a mixed run for X-Energy's stock, with a 30-day share price return of 31.25%, following a 90-day share price decline of 30.61% and a year-to-date share price return down 34.55%. Compare X-Energy's nuclear story with other potential beneficiaries of the sector shift by scanning our hand picked 92 nuclear energy infrastructure stocks today. After a sharp 30 day rebound and a share price near US$19.11 that sits far below analyst targets around US$38, X-Energy now trades at a steep apparent discount. Is the market being cautious for good reason? Preferred Price-to-Sales Multiple of 36.6x: Is It Justified? X-Energy trades at $19.11 while carrying a P/S ratio of 36.6x, compared with far lower benchmarks across both its industry and identified peers. That points to a rich valuation relative to current revenue. The P/S multiple compares the company's market value with its revenue. For X-Energy, which is still loss making and does not yet have positive earnings or near term profitability forecasts, revenue is a key anchor for how the market is currently pricing the nuclear reactor and fuel business. XE's P/S ratio of 36.6x is described as expensive versus the US Electrical industry average of 2.7x and a peer average of 5.7x. This places X-Energy at a much higher revenue multiple than both its sector and closer peers. It suggests investors are paying a premium for each dollar of sales compared with other electrical equipment companies, even though X-Energy remains unprofitable and is forecast to stay loss making over the next 3 years despite strong revenue growth forecasts. Result: Price-to-Sales of 36.6x (OVERVALUED) See what the numbers say about this price -- find out in our valuation breakdown. However, investors in X-Energy still need to weigh the ongoing net loss of US$448.87 million and the very high 36.6x P/S multiple against future execution risks. Find out about the key risks to this X-Energy narrative. Another View on X-Energy's Valuation While X-Energy looks expensive on a 36.6x P/S ratio, the SWS DCF model points in the same direction. It estimates the future cash flow value at about US$12.10 a share, compared with the current US$19.11 price. This implies the stock is trading above that cash flow based value. How much weight should you give to each method before making a call?
