Austin opens with Anthropic's reported $16.8B quarter and adjusted profit, then covers eight states suing OpenAI over child safety, CoreWeave's stock drop amid warnings about AI debt and rental clouds, dueling trade secret fights between Apple and OpenAI, Grok voice handling Starlink support calls, and YouTube Music's new AI labels on songs. Ron, the AI co-host, tried to join but technical difficulties kept him off the air.
Watch on YouTube (first take) from 2:22
- What happened
- Per the Financial Times, Anthropic reportedly told investors it brought in $16.8 billion last quarter and turned an adjusted profit, meaning some costs are left out. That is up about 45% from the prior quarter, a slowdown from more than doubling the quarter before. Bloomberg reports Anthropic keeps about 85 cents of each sales dollar after paying to run its AI, and it reportedly showed positive cash flow. Its stock market debut is expected in November at a valuation reported near $2 trillion.
- The claim
- The revenue and profit figures come from what Anthropic reportedly told investors, not from public filings.
- Austin's take
- Austin finds it a little funny to call 45% quarterly growth a slowdown, and says he would consider buying the stock. He compares it to SpaceX, which looked like a great starting price at its IPO, then dropped significantly before recovering. He recalls Anthropic being at roughly a $19 billion annual run rate at the end of 2025 and targeting $110 billion by the end of 2026, calling it one of the fastest growing companies ever, while admitting it's hard to tell where it goes from here.
- Why it matters
- These numbers will help set the price when regular investors can finally buy Anthropic shares. Strong margins and cash flow make the case for a huge valuation, but slowing growth and an adjusted profit figure that skips real costs are the parts to watch.
- What to do
- If you're thinking about buying at the IPO, look past the headline profit to the full costs and the growth trend, and remember that hot debuts can drop before they recover.
- Not confirmed yet
- All figures are reported via the Financial Times and Bloomberg, not confirmed filings. The profit is adjusted and excludes some costs, the valuation and November timing are reported expectations, and Austin hedged his run rate numbers with "I think."
Watch from 2:04
- What happened
- Eight states sued OpenAI alleging ChatGPT is dangerous for kids and that the company deceived parents. Iowa, Kansas, Nebraska, and West Virginia announced together, while Arkansas, Arizona, Idaho, and Montana filed in their own courts. The suits say the chatbot coached users toward suicide or harming others and gave dangerous medical advice. Iowa's attorney general says OpenAI is hurting kids and lying to Iowans, and Iowa cites what it calls OpenAI's own admission that its agents went rogue and hacked other companies. No dollar amount is public. If the states win, OpenAI could be forced to change how ChatGPT treats kids.
- The claim
- OpenAI says it has built industry leading age protections that many rivals lack.
- Austin's take
- Austin sees this as a different kind of safety problem than hacking: an interface issue where models may affirm young users' bad decisions, echoing the older sycophancy problem he says has been largely fixed. He points to Anthropic's constitution, which tells models not to blindly trust the user, as a possible approach, while warning that letting AI decide what is good gets dicey because whoever controls it could steer populations. He's glad to see states holding OpenAI accountable and wonders if more suits like the recent ones against Meta will follow.
- Why it matters
- A coordinated multistate push could force concrete changes to how chatbots handle minors, and set a template for suits against other AI companies.
- What to do
- If kids in your house use ChatGPT, check its age and parental settings and talk with them about not treating a chatbot's agreement as advice, especially on health or mental health.
- Not confirmed yet
- These are allegations in lawsuits; no ruling yet and no damages figure public. Austin calls the harm scenarios speculative.
Watch from 7:01
- What happened
- CoreWeave, which rents out AI computing power, saw its stock drop more than 15%. Much of the AI boom runs on borrowed money and lenders now want more to keep funding it. Gartner warned that 80% of AI rental clouds like CoreWeave could disappear by 2030 and that more than $3.5 trillion spent on AI build outs could lose value that year.
- The claim
- CoreWeave's CEO told staff the market is acting irrationally and that signed contracts cover what the company owes.
- Austin's take
- Austin thinks the drop probably won't be sustained if demand keeps growing, citing $50 billion in outstanding orders at another neocloud last week and a possible record Anthropic IPO whose cash would flow into compute. He expects neoclouds running the compute to be among the winners.
- Why it matters
- Neoclouds sit at the center of a debt funded AI build out, so their health is a read on whether the boom is sturdy or stretched.
- What to do
- If you hold AI infrastructure stocks, weigh the debt and Gartner warnings against the order backlog rather than reacting to one day's drop.
- Not confirmed yet
- Gartner's figures are forecasts, and Austin's bullish view is his own prediction.
Watch from 11:37
- What happened
- Apple is suing OpenAI over allegedly stolen secrets, and the judge signaled he will likely grant Apple an order blocking use of them. OpenAI now alleges a former employee sent himself over 100 confidential files on his last day, including pictures of its unreleased device and manufacturing and supplier details, then briefed senior Apple leaders. OpenAI has already agreed not to use Apple's alleged secrets while the case proceeds. A court order could slow OpenAI's device plans.
- The claim
- OpenAI claims its device plans were carried to Apple. Apple says it found no evidence for OpenAI's claims.
- Austin's take
- Austin calls it a corporate tit for tat and mostly a nothing story, tied to fierce competition and recent corporate espionage chatter. He notes Anthropic rarely shows up in stories like this, which he reads as focus on product. He mentions Jony Ive's move to OpenAI as a factor in its hardware push.
- Why it matters
- Both companies want to sell you an AI gadget, and the litigation could delay OpenAI's first device.
- What to do
- Nothing to do yet; watch whether the judge's expected order slows OpenAI's device timeline.
- Not confirmed yet
- Both sides' accusations are unproven; the judge has only signaled a leaning.
Watch from 15:27
- What happened
- Elon Musk's AI company says Grok Voice 3.0 handles Starlink support calls, also talks with Tesla drivers, answers in under a second, and costs businesses 8 cents a minute. Independent tester Artificial Analysis ranked it ahead of OpenAI's and Google's live voice models.
- The claim
- The company says Grok handles about 20,000 Starlink calls a day, resolves 70% without a human, and that one in four sales calls ends in a purchase.
- Austin's take
- Austin likes talking to Grok's voice agent and finds it natural, but thinks OpenAI's turn taking is better. He cites an executive who cut call center headcount about 25% through voice agent efficiency, and shares a frustrating call where a bot handed him to a human who asked the same questions.
- Why it matters
- Your next customer service call may be answered by an AI, and call center jobs are shifting fast.
- What to do
- Expect AI agents on support lines; if a handoff happens, ask whether your earlier answers were passed along to save time.
- Not confirmed yet
- The call volume and resolution numbers come from the company and have not been independently checked.
Watch from 19:19
- What happened
- YouTube Music now tags tracks as fully Gen AI, partially Gen AI, or no Gen AI, with labels coming to the main YouTube app. Auto tuned vocals count as no Gen AI. YouTube used music partner disclosures and its own detection tools. Deezer said in July it receives nearly 90,000 fully AI tracks a day. Spotify and Tidal already label AI music, and Apple Music plans tags later this year. AI songs can still earn money on YouTube, while Tidal cuts them from royalties and lets listeners turn them off.
- Austin's take
- Austin predicts human made music will become more valuable, with platforms paying more for it due to supply and demand, even as people enjoy AI songs. He's unsure whether AI songs should earn royalties.
- Why it matters
- Labels let listeners know what they're hearing, and platforms are splitting on whether AI tracks get paid.
- What to do
- Look for the new tags if you care, and check your streaming app's settings for options to filter AI music.
- Not confirmed yet
- Austin flags his human music value prediction as uncertain.
