Anthropic valued at $965B after $65B funding round
Anthropic has secured a $65 billion funding round, pushing its valuation to $965 billion and surpassing rival OpenAI to become the world's most valuable AI startup. The company's valuation jumped from $350 billion just three months ago. It is on track to generate $47 billion in annualized revenue. OpenAI, valued at $852 billion, expects to reach profitability by 2030 with projected revenue of $284 billion. Both companies are now racing to go public in what promises to be a historic year for technology IPOs.
$14 billion floods SpaceX funds ahead of historic IPO
Investors have poured $14 billion into funds holding SpaceX shares since mid-December, ahead of the company's planned Nasdaq IPO early next month. The company also won a $2.29 billion Pentagon contract to build its military satellite network, requiring a fully operational prototype by the end of 2027. Prediction markets assign over 90% odds to Elon Musk becoming the world's first trillionaire before 2027. Veteran investors have warned the speculative frenzy typically ends poorly, with at least 14 space-themed ETF applications now pending with the Securities and Exchange Commission.
EU pivots Chips Act from factory subsidies to demand measures
The European Commission will unveil a revised Chips Act on June 3, shifting focus from building semiconductor factories through subsidies to demand-side measures such as demand aggregation and procurement coordination. The pivot follows Intel's abandonment of two mega-fabrication facilities in Germany, exposing the limitations of a supply-driven industrial strategy. The revised Act forms part of a broader Cloud and AI Development Act designed to reduce European technological dependencies on foreign providers. Cristina Caffarra of the EuroStack Initiative welcomed the emphasis on open-source technologies as "Europe's magic sauce" for building independent technological capacity.
Dell Shares Surge 32% on AI Server Demand
Dell Technologies shares surged 32% on Friday, the stock's best day ever, after reporting its fastest pace of revenue growth since returning to the public market in 2018. Explosive demand for AI servers drove the rally, with that segment jumping 757% year over year to $16.1 billion. Adjusted earnings per share came in at $4.86, crushing analyst expectations of $2.94. Morgan Stanley acknowledged they underestimated the results, writing: "We got this one wrong."
Israel orders seizure of 70% of Gaza Strip
Vice President JD Vance said the U.S. is "very close" to a 60-day ceasefire deal with Iran, though Iranian officials have not confirmed and Trump has yet to approve. Israel simultaneously ordered forces to seize 70 percent of Gaza while bombing Beirut for the first time in three weeks and expanding its Lebanon assault. The Pentagon awarded Dell a nearly $10 billion contract days after Trump disclosed purchasing up to $5 million in the company. U.S. inflation rose to 3.8 percent in April, its highest since 2023.
US Seeks Record $1.5T to Counter China Over Taiwan
The US military is requesting a record $1.5 trillion defense budget to counter China over Taiwan. Admiral Samuel Paparo submitted a 121-page report warning that China's People's Liberation Army is training specifically to "force Taiwan unification" by 2027. The budget allocates $592 million for Quicksink anti-ship bombs and $531 million for seabed mines. China's navy operates over 430 ships compared to the US Navy's 291 vessels. Separately, US defense executives are seeking deeper commercial ties with Taiwan to address a backlog exceeding $20 billion in approved weapons deliveries.
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- Russian Drone Hits Romania Building in NATO First. Romania summoned Russia's ambassador and closed a consulate after a drone crashed into a Galati apartment block, injuring two people in what Bucharest called "a grave violation of international law."
- Trump to decide on Iran deal as Tehran denies any agreement. Trump will convene his national security team to make a final decision on a proposed framework requiring Iran to abandon its nuclear program and reopen the Strait of Hormuz, though Iranian officials insist no deal exists.
- Zelenskyy warns of imminent Russian attack on Kyiv. Intelligence suggests Russian "big attacks" could come Friday or Saturday night. Moscow has warned foreigners to leave Kyiv and says the strikes respond to a Ukrainian drone attack Ukraine denies.
- Technical recession hits Canada amid US tariff tensions. Two consecutive quarterly contractions—the revised -1.0% in late 2025 and -0.1% in early 2026—mark Canada's first back-to-back GDP decline since the pandemic, with both figures badly missing forecasts.
- UN demands tech firms redesign platforms for child safety. New UN guidelines urge tech giants to embed safety into platform design rather than relying on age restrictions, arguing that engagement-maximizing features like infinite scroll and autoplay—not just access—need to change.