Key Takeaways
- Applied Compute reached a $100M annualized revenue run rate and raised $350M at a $3.25B valuation, led by Elad Gil's Gil&Co.
- Anthropic's revised S-1 shows $33.2B revenue for the first nine months of 2026, up 1,206%, alongside a $104B net loss driven mainly by non-cash accounting charges.
- OpenAI is launching a new internal security sprint with Cathedral Systems and raising critical vulnerability bounties more than threefold, to as much as $172K.
- Apple posted record Q3 revenue of $112B and net income of $310B, with gross margin rising to 48%.
- Nasdaq 100 fell 1.4% and is more than 10% below its October 6 high, while market breadth improved sharply and factor leadership rotated toward profitability.
- Jason reported a claimed $25–50 return per $1 spent on tokens or subscriptions for "superintelligence" work, and argued that enterprises fail when they buy frontier models without connecting business data.
- Lyn Alden said she is no longer as bearish on bonds after eight years of structural shorts, moving to neutral rather than bullish.
1. AI Companies and Infrastructure
- Applied Compute raised $350M at a $3.25B valuation, led by Elad Gil's Gil&Co, after annualized revenue grew from zero 18 months ago to more than $100M. The company said 40% of customers use both custom model training and production inference, inference reached 1 trillion tokens per day 12 weeks after launch, and its customer base doubled since the prior round; named customers include Microsoft, Shopify, Harvey, DoorDash, Cognition, Clay, and Decagon. 1 2
- Anthropic's revised S-1 reported $33.2B in revenue for the first nine months of 2026, up 1,206%, with operating expenses of $34.5B, up 344%. Net loss was $104B, versus a $25B loss a year earlier, mainly from non-cash accounting charges tied to convertible notes and financing agreements; adjusted net income was $56M, and cash plus short-term investments totaled about $131.9B. 1
- OpenAI plans a new internal security sprint and will work with Cathedral Systems, whose researchers will test defenses using OpenAI models alongside OpenAI teams. OpenAI also raised critical-finding bounties more than threefold, with special findings reaching up to $172K including bonuses, and expanded access for trusted defenders. 1 2
- Jason said his current spending on tokens or subscriptions for "superintelligence" work returns a claimed $25–50 per $1, and argued that the biggest enterprise AI mistake is buying the most advanced model without connecting any business data, likening it to driving a Ferrari at 5 mph. He said companies should match models to tasks, connect real business data, and make tools easy for employees to use. 1 2
2. Markets and Earnings
- Apple reported record Q3 revenue of $112B, up 12%, and record net income of $310B, also up 12%, with gross margin rising from 47% to 48% and free cash flow of $136B over the past 12 months. 1
- The Nasdaq 100 fell 1.4% and closed more than 10% below its October 6 high, entering correction territory. Market breadth improved, with the share of S&P 500 constituents beating the index over the past month rising from 17% to 74% in two weeks; profitability led factor performance while momentum lagged, and the 10-year Treasury yield's rolling correlation with the S&P 500 moved from deeply negative to near zero. 1 2 3 4 5 6
- Lyn Alden said she is no longer as bearish on bonds after eight years of structural shorts, calling holding bonds "mediocre" rather than "terrible" from a currency-debasement perspective. She said she will not become a bond bull and at most remains neutral. 1 2 3
- Ben Carlson noted the S&P 500 was up 11.8% year to date through Friday's close, while the average stock rose 14.9% and the median rose 8.9%; about two-thirds of stocks were up, one-third had gained at least 20%, and one-fifth had fallen 10% or more. He characterized the year as broadly normal rather than a major drawdown. 1
3. Macro and Market Views
- Charlie Bilello cited data showing that over the past 50 years inflation compounded 6x, cash 8x, and stocks 277x, concluding that owners accumulated far more wealth than lenders. He also said U.S. national debt rose more than $1.1 trillion since July 1 and criticized federal borrowing as spending the future. 1 2
- BofA, cited by Jason, called the Texas election the most critical this cycle for data centers, utilities, and power, saying the next governor would inherit a 474 GW interconnection queue that is about 90% data centers and more than five times the system's historical peak. 1
- Liz Ann Sonders noted Brent crude fell more than 11% in one day, one of the largest single-day drops in the past year, amid renewed hopes for a diplomatic resolution to the Iran war. She also cited September job openings of 7.523 million, above the 7.164 million expected and 7.19 million prior, with the quits rate at 2.1% and hires rate at 3.4%, and factory orders up 1.8% month over month. 1 2 3 4
- Meb Faber relayed Peter Lynch's view that successful stock pickers should expect market declines, prepare in advance, and buy more of favored stocks when they fall with the broader market. 1
