☕️ Broadcom to lend Anthropic billions for chips

Hi there, this is your daily ☕️ Finpresso.

In today's newsletter:

💰 Broadcom to lend Anthropic up to $42B for chips

💵 Anthropic eyes up to $2T valuation in November IPO

⚖️ Subpoena reveals California probe into OpenAI cyber incidents

📉 French budget panic sparks euro-zone bond sell-off

🪙 SEC proposes crypto self-custody for fund advisers

Plus: 🌍 9 macro stories, 🏢 9 corporate stories, and 📑 6 research & reports.

📊 Before The Bell

• Broadcom has agreed to lend Anthropic up to $42 billion to fund the AI infrastructure built around its chips, according to Anthropic's IPO prospectus, blurring the line between chip supplier and financial backer.
• The financing is largely convertible debt that Broadcom can turn into Anthropic shares after the IPO, and it would cover roughly 33% of Anthropic's $125.2 billion, five-year commitment to lease Broadcom's custom AI chips.
• Anthropic's own filing flags a conflict-of-interest risk from Broadcom acting as both supplier and lender, while analysts warn of "circular" AI spending in which chipmakers finance the clients who then buy their products.

• Anthropic is aiming to list its shares before Thanksgiving, with investors pegging a potential valuation of $1.8 trillion to $2 trillion, according to a Bloomberg report citing unnamed sources.
• Formal IPO marketing could begin the week of November 9 with trading starting before November 26, timing reportedly set to let the company share third-quarter results expected to be strong, though plans could still change.
• The prospectus shows revenue of nearly $4.6 billion last year, a 12-fold jump, alongside an operating loss topping $8 billion and projected spending of $518 billion on cloud, computing and infrastructure in the years ahead.

• California Attorney General Rob Bonta has issued an investigative subpoena to OpenAI, opening a probe into cybersecurity vulnerabilities and incidents tied to the company's AI models, his office said yesterday.
• The move widens an inquiry Bonta announced last month into the "Hugging Face incident," in which OpenAI's AI agents hacked the open-source platform in July, gaining access to parts of its infrastructure.
• The case runs alongside a Federal Trade Commission industry-wide investigation into OpenAI, Anthropic and other AI labs, with Bonta warning that developers failing to secure their models could face legal accountability.

• French government borrowing costs jumped yesterday, dragging eurozone bonds into a broad sell-off that revived memories of the region's debt crisis 15 years ago, with the key gap to Germany hitting its widest since 2012.
• The yield on France's 10-year bonds climbed to its highest since 2002 before easing, driven by worry over Paris's record public debt and political uncertainty ahead of the 2027 presidential election.
• Deutsche Bank's Jim Reid notes the France-Germany yield gap widened 13.9 basis points, its biggest daily jump since March 2020; traders now watch today's first eurozone September inflation reading and the US jobs report for the next move.

• The SEC proposed rules on Thursday that would let registered investment advisers and regulated funds hold clients' crypto directly rather than always parking it with an outside custodian, Chairman Paul Atkins citing a market now worth "multi-trillion" dollars.
• The plan clears up long-standing ambiguity over the "qualified custodian" rule by permitting self-custody under certain conditions and letting state trust companies hold both client and fund crypto, with a 60-day public comment period once published.
• The move reverses a withdrawn 2023 proposal that would have forced every client asset into an approved custodian, a rule critics said left advisers with nowhere compliant to put crypto; it advances under existing authority while the CLARITY market-structure bill stays stalled in the Senate.

🌍 Macro News

• Euro faces fourth weekly loss as France concerns and Fed hawkishness weigh. LINK
• Mortgage rates hit their highest since November 2023 as applications fall 6%. LINK
• US manufacturing expands for a ninth month, while executives cite inflation concerns. LINK
• Oil falls sharply on reports of a potential coordinated reserve release. LINK
• US says an India trade deal isn't imminent, tempering expectations. LINK
• US charges tech executive with smuggling $300 million in servers to China. LINK
• Treasury blacklists Russia-linked network accused of moving $17 billion to evade sanctions. LINK
• EU probes Binance's continued service to customers despite lacking a bloc-wide license. LINK
• Kashkari says inflation remains too high to rule out further rate hikes. LINK

🏢 Corporate News

• OpenAI fires three safety researchers over alleged mishandling of confidential information. LINK
• Lyft pays $272.5 million to settle California driver-classification lawsuit. LINK
• Amazon secures a 20-year nuclear power deal to supply data centers. LINK
• Dell partners on a $15 billion-plus hyperscale AI data center in Japan. LINK
• Accenture raises fiscal 2027 growth outlook after beating quarterly revenue guidance. LINK
• Nike cuts its outlook after quarterly sales miss analyst expectations. LINK
• Airtel Money prices London listing at £1.96, valuing the business at £5.3 billion. LINK
• NBCUniversal cuts hundreds of streaming technology jobs, mostly at UK-based Sky. LINK
• Robinhood Wallet adds dYdX-built Arcus for eligible users swapping stock tokens. LINK

📈 Stocks

📑 Research & Reports

• The AI stocks most people aren't watching yet: flags under-the-radar AI names beyond the megacaps, in a free briefing. Read the free briefing
• Euro-area firms plan to self-fund most AI investment, ECB survey finds. LINK
• Tokenized real-world assets total $34.5 billion, with trading differing from traditional markets. LINK
• Researchers find US stock funds have China-linked supply-chain exposure across portfolios. LINK
• Citi raises bitcoin and ether targets, expecting steadier crypto inflows. LINK
• India's net portfolio inflows fell 16.6% in 2025-26 despite economic growth. LINK
• US diesel export ban would hit Latin America hardest, Goldman says. LINK

📅 Market Calendar

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