Intel shares opened roughly 25% lower after guidance forecast a major revenue slowdown from supply constraints, memory shortages and weak PC demand, though Patrick Moorhead says the problem is partly industry-wide.
Binance was hacked for $6.3bn, the largest crypto hack ever, after an engineer's laptop was compromised, and Binance says it will cover all losses from its company fund.
Cohere is seeking about $5bn US at a roughly $26bn valuation and has closed more than half its target, with Joelle Pineau saying the company will build some compute in Canada.
Intel Shares Plunge 25% on Weak Supply-Constrained Outlook
Funding and deals
Cohere. The Canadian AI company announced an initial close on a round targeting about $5bn, valuing it at roughly $26bn, with Government of Canada involvement.
Anthropic. The AI lab published its roughly 400-page S1 IPO filing, which rival AI labs reviewed closely.
Guest interviews
Patrick Moorhead, founder of Moor Insights & Strategy. Moorhead blames Intel's drop partly on industry-wide substrate shortages and a weak Windows PC market, and wants to wait for AMD's results before judging. He says Intel's foundry loses 28 cents per revenue dollar but should turn a profit in 2029 or 2030, with 18A yields improving every quarter. He expects NVIDIA and Apple among the first wafer customers, and notes CEO Lip Bu Tan promised foundry customer announcements within two quarters.
Ken Gawrelski, senior internet analyst at Wells Fargo. Gawrelski says Prime Day's shift into the second quarter distorts Amazon's numbers, and underlying retail growth holds at 10 to 11%. About 7% of retail sales volume now goes to advertising, which Amazon expects to reaccelerate to the high teens in the fourth quarter. He sees external Trainium deliveries by the end of 2027 and high-teens returns on compute, with a three to four year payback.
Joelle Pineau, Chief AI Officer at Cohere. Pineau says Cohere has raised more than half its target and will build some compute in Canada and eventually Germany. Cohere runs mostly on NVIDIA chips, has had good results with AMD and is talking to inference chipmakers such as Cerebras. She called the risk disclosures in Anthropic's S1 very interesting and declined to give an IPO date.
Nikhil Raghuveera, co-founder and CEO of Predicate. Raghuveera says Circle and Tether freezing hacked wallets within about 40 minutes was among the fastest responses to any exploit, notable since Circle usually waits for a court order and the Clarity Act's safe harbor never passed. He expects no run on Binance but sees securing digital asset products as the longer-term problem.
Yueqi Yang, crypto reporter at The Information. Yang says frozen funds cut Binance's exposure to about $3bn, and it holds a $1bn emergency reserve. Bitcoin fell to around $77,000 from above $80,000. Whether AI played a role in the hack is still unknown.
News
Intel shares open 25% lower after results. Intel forecast a major top-line slowdown, citing supply chain constraints and memory shortages amid weak PC demand. Shares had more than doubled over the prior year, and executives expect no free cash flow in 2027.
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On this episode 6
Show 1
Binance loses $6.3bn in record crypto hack. A compromised engineer's laptop let the hacker submit unauthorized withdrawals, and experts suspect a North Korean state actor. Binance paused deposits and withdrawals and promised to cover all losses, aiming to reopen withdrawals in about 48 hours.
Amazon online store growth slows to 2%. Online stores grew 2% against 15% the prior quarter and shares fell. Andy Jassy focused the call on Trainium and AWS rather than advertising.