TBPN
The Market Cries Out for Help, Neocloud FUD, Strauss Zelnick Fires Back at Take-Two Slander
5 Nov · 53 min
Key points
- The Nasdaq falls 5% into correction territory as chip stocks drive a "true panic" that erased $2.2tn in 55 minutes.
- Prediction markets put Anthropic's odds of an IPO before December 1 at 61%, down from 88%, with Jim Cramer warning it needs a discount.
- Greg Brockman says OpenAI's enterprise growth topped 100% in Q3 while Anthropic's decelerated to 49%.
Nasdaq Enters Correction as Investors Dump AI Trade
Funding and deals
- Anthropic. AI lab whose last round valued it at $960bn and is expected to IPO, though Jim Cramer says it will need a discount.
Guest interviews
- Strauss Zelnick, CEO of Take-Two Interactive. Take-Two owns the best IP in games, he said, with 15 franchises that each sold 5m units and Red Dead Redemption past 65m copies. NBA 2K is North America's biggest sports title. He will use AI tools but keeps human creativity central.
News
- Nasdaq Falls 5% as AI Trade Unwinds. The index slid into correction territory as the Dow dropped about 1,600 points and the S&P 500 fell 4%. Jay Hatfield called it a true panic driven entirely by chip stocks.
- Anonymous Seller Auctions $500m Data Center Loans. Bloomberg reported a dozen loans sold at once, including a $25m slice behind a New Mexico data center tied to OpenAI and Oracle, where Oracle cited force majeure. Bids are due November 19 with a $10m minimum.
- OpenAI Enterprise Growth Rebounds Past Anthropic. Greg Brockman told The Wall Street Journal OpenAI had a rough first half, then Q3 enterprise revenue grew more than 100% quarter on quarter while Anthropic decelerated to 49%. GPT-5.6 shipped.
- Neocloud Stocks Halve as Short Seller Circles. Cerebras fell 54% and CoreWeave 50% over a month, and a short seller claimed their chips stopped working after two years. Hyperscalers held up better, down about 2%.
- Sequoia Shuts London Office and Merges Stages. Sequoia is merging seed and growth, scrapping partner meetings and focusing on the US after spinning off India and China. Pat Grady called Index Ventures' transatlantic pitch baloney.
- Claude Code Creator Cat Wu Exits Anthropic. Wu announced her departure on Tuesday. Claude Code is one of the fastest revenue ramps in software, and earlier product managers left for Cursor before returning about ten days later.
- Citrini Calls Peak in AI Data Center Capex. The research firm overhauled its model book and said asymmetric risk has shifted to the downside, with US data center costs set to rise after Democratic midterm wins.
- Voters Say AI Will Hurt Society. Polling cited on the show found most voters think AI will hurt society and only a quarter think it will help. Christopher Mims argued big tech can still build data centers people won't hate.
- Harley-Davidson Posts First Sales Gain in Years. Americans are cutting back on boats and RVs but still buying motorcycles, with new models and cheap financing driving the maker's first sales boost in years.