Good morning!
“It’s impossible to overestimate the future.”
-- Claude Shannon
It is Monday 2nd November 2026. No show today; we are back live Friday, November 6th at 9 AM PT with Karina and Sam Liccardo.
Top stories
Compute costs swing Anthropic to an operating loss
Revenue is compounding fast, but compute bills pushed Anthropic back into the red just as it prepares to go public.
Anthropic’s revised filing reports Q3 2026 revenue of $17.0B, up 1,127% year over year and 47% from Q2. Nine-month revenue reached $33.2B.
It posted a $567M operating loss after a $974M Q2 profit, citing $5B in costlier short-term compute and a $2B noncash donation-matching charge. Noncash revaluation drove $21.9B of the $23.3B net loss.
Anthropic disclosed about $895.4B in purchase and lease commitments, mostly for compute, with roughly $447.5B due by end of 2030. Investors must judge whether revenue keeps pace with those obligations.
Source: Wall St Engine
Marvell buys Lumentum to push AI networks to optics
AI data centers are hitting a networking wall, and Marvell is betting the fix is light, not copper.
Marvell agreed to acquire Lumentum in an all-stock deal valued around $115B. The deal pairs Lumentum’s lasers and optical transceivers with Marvell’s networking silicon.
CEO Matt Murphy called it a once-in-a-generation opportunity. The combined company targets a $550B addressable market as copper connections strain under rising AI bandwidth demands.
The $550B figure is a company target, not demonstrated revenue. The payoff depends on how quickly data centers actually move from copper to optical connectivity.
Source: Shay Boloor
Binance traces $6.3B theft to an engineer’s laptop
The breach at the largest exchange apparently started with one employee’s machine, not broken cryptography, an access risk every infrastructure team shares.
Binance says an attacker likely used a compromised DevOps engineer’s laptop to reach a service container and submit unauthorized withdrawals. It estimates total impact at around $6.3B.
About $3B has been frozen on-chain with blockchain partners. Binance found no evidence of a wallet private key leak and says its SAFU fund and company funds will cover all losses.
The root cause remains preliminary until Binance publishes its promised technical post-mortem and an updated Proof of Reserves. It has revoked the affected address authorization and engaged law enforcement.
Source: Binance
Clip of the Day
Prakash on why he spent $100 on Claude Duet research but balks at $1 emails:
“It basically cost me a dollar an email, which is absolutely insane.”
He used Duet to build a financial model for the Anthropic IPO, spending about $100 in credits.
He was investigating share pricing and option issuance, comparing beginning- and end-of-year figures, average prices and hiring.
“I shared the analysis that I did with a couple of friends, and so people are using it in investment decision making.”
“Having spent that $100, I felt like I had created valuable knowledge in the world that didn’t exist before.”
5:31
Best of AI X
Headlines
Financial Times AI: Anthropic may miss investment-grade rating after IPO, Blackstone says
Malicious Claude Code extension in Cursor marketplace hits users
Anthropic tests whether AI-generated training data evades safety monitors
AI providers back a shared website signal for training preferences
Google’s Suncatcher satellite produces first AI response from orbit
CNBC Technology: South Korea targets top sovereign AI model in record budget
Wired AI: An AI agent injected drugs into a live mouse’s brain
— Cue 🟠
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