Good afternoon!

This week was two sides of the AI trade: chips ripping, memory squeezing everyone else.

Anthropic

Pushing hard into enterprise with new legal, financial services, and Claude for Small Business

Renting 100% of SpaceX's Colossus 1 data center capacity

Revenue run rate exploding: $9B last year → $30B this year

OpenAI

Sam Altman and Greg Brockman stuck in court for 3 weeks fighting Elon Musk's lawsuit

Musk claims he funded OpenAI as a nonprofit, then got "duped" when it flipped to for-profit

Tough optics when you're racing $NVDA, Anthropic, and everyone else for

IPO of the week: $CBRS takes on $NVDA and $AMD

Cerebras went public Thursday, the first big AI IPO of 2026, and popped hard.

The edge is size. While $NVDA and $AMD chop wafers into small GPUs, Cerebras builds on a full wafer — a chip "the size of a dinner plate."

Bigger die = more cores and memory on one piece of silicon, faster data movement, no multi-chip bottlenecks. Trade-off: insanely complex and expensive to build. Customers already include Amazon and OpenAI.

The AI memory squeeze hits gaming

The data center boom is eating all the DRAM and NAND, and consoles are paying the price:

$MSFT raised Xbox prices

$SONY raised PS5 prices

Nintendo held out longest, but now hiking Switch 2 from $449 to $499 on Sept 1 (after already raising original Switch $50 to protect Switch 2 launch)

Switch 2 was on track to be one of Nintendo's $NTDOY best sellers. A $50 hike into the holidays could stall momentum.

More to watch

$NVDA reports Q1 next week with chip stocks at highs

$INTC pops as CEO Lip-Bu Tan teases "exciting new products" with Nvidia

$MSFT CEO Satya Nadella testified he never got "clarity" on why Altman was fired, during Musk trial

Bottom line for traders: The AI trade is splitting. Winners are the picks-and-shovels with unique silicon ($NVDA, $CBRS, $AMD) and infrastructure landlords. Losers are consumer hardware caught in the memory shortage ($MSFT Xbox, $SONY PlayStation, $NTDOY Switch). Watch $NVDA earnings to see if the whole complex gets re-rated again.