OpenAI revenue gap and Anthropic IPO timeline emerge

Bloomberg reported OpenAI's revenue at $50 billion, a $20 billion shortfall from the $70 billion estimate, raising questions about growth dynamics ahead of potential IPOs. Anthropic is reported to have $60 billion in revenue and has filed a confidential draft prospectus with the SEC, with trading potentially starting before Thanksgiving on November 26, 2026. The prospectus reportedly includes 80 pages on risks, including human extinction. A major AI bubble test is expected with earnings from Alphabet, Microsoft, and Amazon on October 28 and 29, 2026.

Broadcom CEO Hock Tan warned that many investors lack understanding of AI investments, comparing the market to a casino due to high expectations and volatility. He referenced recent 7-8% drops in South Korean indices driven by leveraged ETFs on chips like SK Hynix. The hosts highlight the nervousness around AI valuations and the discrepancy between reported and estimated revenues as a key risk factor for the sector.