OpenAI may be heading for another record-breaking funding round.
The company has reportedly held early talks with investors about raising fresh capital at a staggering $1.2 trillion valuation—up from $852 billion in March. Why now? The launches of GPT-5.6 and Astra have reignited demand. OpenAI’s annualised revenue reportedly exceeded $40 billion, jumping 20% after GPT-5.6’s release. But extraordinary growth requires extraordinary capital. OpenAI spent around $34 billion last year, largely on computing infrastructure and model development. Another private round could provide the firepower needed to stay ahead of Anthropic, now valued at $965 billion and reportedly approaching profitability. It could also delay OpenAI’s IPO. Despite confidentially filing in June, Sam Altman recently suggested a listing is unlikely before 2027. The numbers are breathtaking: • $1.2 trillion potential valuation • $40+ billion annualised revenue • $34 billion annual spending The AI race is no longer just about models. It is becoming the largest capital race in corporate history. Source: FT
The S&P has fallen on five consecutive Fed days (every Fed day this year).
It fell on Powell's last three as Chair, and Warsh's first two as Chair. It's the second longest losing streak behind 7 straight that ended in December 2018. Source: Bespoke
Foreign demand for UST 20Y paper has collapsed as Indirects plunge to 52.5%, lowest on record.
Source: zerohedge, Bloomberg
The largest AI borrowers are not weak credits
JPM estimates hyperscaler gross leverage at roughly 1.6x, around half that of the broader investment-grade universe. Leverage even fell quarter over quarter despite debt rising 92% YoY, while stronger cloud revenue and operating profits are beginning to provide evidence that AI investment is being monetized. The risk is therefore not that the strongest AI companies cannot borrow. It is that the scale of the buildout could require them to absorb a much larger share of available capital. JPM estimates roughly $5.5tn of AI and data-center investment from 2026 through 2030, with only around $1tn covered by organic cash generation. Approximately $2.1tn could come through high-grade bonds, with the remainder funded through equity, structured markets, leveraged finance and alternative capital. AI is increasingly a capital-markets story, not just a technology story. Source: JPM
Dubai: Traffic "near DIFC recovered to about 90% of pre-war levels before slipping in August during the school break"
"The rebound was slightly more muted around Palm Jumeirah and Dubai Marina, likely because those areas are more dependent on tourism" Source: Ziad Daoud
WILL THE FED'S EXPECTED RATE HIKE MAKE THE US DEBT PROBLEM EVEN WORSE ???
As 30-year Treasury yields surged above 5% in May 2026, the US government sharply increased its reliance on short term debt. Since July, over 75% of the increase in marketable Treasury debt has come from T-bills, versus just 18% in 2025. US now has a record $7.25 trillion in T-bills outstanding, all of which mature within a year and need to be constantly refinanced. But T-bill yields are already around 3.8-4%, and the Fed is now expected to hike another 25 bps on Wednesday. The Treasury escaped expensive long-term borrowing by leaning harder on short-term debt. Now that short-term debt is getting more expensive too. Source: Bull Theory
The corporate buyback blackout begins this week
Approximately 40% of S&P 500 companies are expected to enter blackout periods. This transition typically tempers one of the market’s most consistent sources of demand. Source: TME, GS
GLOBAL X CYBERSECURITY ETF JUMPS 11% IN BIGGEST GAIN ON RECORD
Pretty wild moves from cybersecurity names yesterday Source: Bloomberg, Negligible Capital
