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Nvidia's worst nightmare may be lurking inside Anthropic's IPO filing

27 October 2026 at 19:31
Co-founder, President and CEO of US technology company Nvidia, Jensen Huang, looks on during a press briefing in Paris on October 13, 2026.
Nvidia CEO Jensen Huang.

Joel Saget / AFP via Getty Images

  • Anthropic is touting its ability to use different AI chips in its initial public offering filing.
  • Analysts say a multichip strategy could weaken Nvidia's pricing power.
  • Switching chips is hard and expensive, putting it out of reach for smaller players.

Anthropic is hedging its bets by using multiple chips to handle its AI work — a strategy that could eventually erode Nvidia's dominance.

The AI lab says it manages compute "as a single, fungible pool from multiple strategic partners" — with software that can direct its work to different chips depending on where they're most productive, according to Anthropic's S-1 filing, which came out Monday as the company prepares to go public.

Anthropic says it uses hardware from four chip families: Amazon Trainium, Google TPUs, Nvidia GPUs, and AMD GPUs.

That flexibility, which Anthropic said "took years and significant investment to build," could make major AI companies less dependent on Nvidia over time and give them more negotiating leverage, analysts said.

"The real exposure could be Nvidia's pricing power," said Patrick Moorhead, founder and CEO of Moor Insights & Strategy, "because a customer that can shift work across four platforms negotiates very differently than one that can't."

Ashish Nadkarni, an analyst at IDC, added that a multichip approach also makes Anthropic less vulnerable to fluctuations in Nvidia's chip supply.

Breaking Nvidia's grip isn't easy

Although Anthropic's chip mix isn't new, the company is now pitching it as a core advantage to investors, Moorhead said.

The threat has its limits. Switching between chips is still difficult — especially when it comes to training AI models as opposed to running them, Moorhead said — and only the biggest AI companies have the resources to do it.

Anthropic also continues to spend billions on Nvidia compute, Moorhead said.

Gil Luria, head of technology research at D.A. Davidson, said that while other major companies like OpenAI likely take a multichip approach, it may not be worth the effort and investment for smaller players.

Brad Gastwirth, global head of research and market intelligence at Circular Technology, said Anthropic's strategy doesn't represent a major near-term threat. Having more chip options doesn't erase Nvidia's advantages in performance, networking, and software, he said.

There's a broader risk for Nvidia if AI compute becomes more of a commodity.

Citadel CEO Ken Griffin has warned that if supply overtakes demand, it could drive down rental prices.

"GPUs, like airlines, have a very low marginal cost to run," he told Bloomberg last week. "The moment you have overcapacity, pricing goes into freefall."

Nvidia did not immediately respond to a request for comment from Business Insider.

Have a tip? Contact this reporter via email at gweiss@businessinsider.com or Signal at @geoffweiss.25. Use a personal email address, a non-work WiFi network, and a non-work device; here's our guide to sharing information securely.

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Closing Bell: Saudi stock market continues rising, gaining 2.3%

27 October 2026 at 13:59
The Saudi stock market continued its upward trend, with the Tadawul All Share Index increasing by 2.3% to close at 9,986.45 points, supported by strong trading activity totaling over SR7.16 billion. BinDawood Holding Co. led the gainers, soaring 10%, while National Co. for Learning and Education experienced the largest decline, dropping 6.48%.

AfD Data Leak Exposes Questions Over Alice Weidel’s Campaign Funding and Party’s Internal Divisions

27 October 2026 at 13:45

More than 420,000 leaked emails have reopened a controversy over illegal donations to Germany’s Alternative for Germany party, while newly examined correspondence reveals previously undisclosed disagreements within its leadership. The revelations could also influence the continuing debate over the party’s constitutional status.

Germany’s Alternative for Germany (AfD) is facing renewed scrutiny after hackers published a substantial archive of internal correspondence, exposing details of party finances, political strategy and disputes among senior officials.

The material, released on 19 October 2026, comprises approximately 421,000 emails and nearly 50,000 accompanying documents, amounting to some 281 gigabytes of data. The files cover more than a decade of party activity, including correspondence involving co-leader Alice Weidel, former chairman Alexander Gauland and other senior figures.

The AfD confirmed that its hosting provider had suffered a cyberattack in September. According to the party, the attackers obtained information from a limited number of email accounts, many of which had not been actively used for several years.

The identity of those responsible remains unknown.

The documents are being examined by several investigative teams, including ZDF, Der Spiegel and Austria’s Der Standard, with technical assistance from the Organised Crime and Corruption Reporting Project (OCCRP).

The Swiss donations controversy returns

The most consequential findings so far concern Weidel’s knowledge of illegal campaign donations received during Germany’s 2017 federal election.

At the time, approximately €132,000 was transferred through Swiss companies into accounts belonging to the AfD’s Bodensee district organisation. The payments were designated for Weidel’s election campaign, particularly its social media activities.

When the transactions became public in 2018, Weidel maintained that she had not known about the money until September 2017 and described the donations as unsolicited.

However, correspondence examined by German investigators and journalists raises questions about that account.

In an email dated 10 July 2017, attributed to Weidel, she told her district treasurer that campaign donations had been promised and requested that the party’s bank account be checked twice weekly.

She also asked to receive confirmation of incoming payments so that campaign expenditure could be planned.

Four days later, the first payment arrived from Switzerland.

Further correspondence indicates that Weidel arranged a separate campaign account and obtained authority to direct expenditure from donations earmarked for her election activities.

The latest investigation, published on 26 October, provides additional details about the account’s management and how the party handled the ensuing controversy.

The leaked correspondence also reportedly includes invoices relating to the purchase of approximately 25,000 Facebook followers for Weidel’s campaign. The extent to which those accounts were automated, and their influence on voters, has not been established.

The AfD was previously ordered to pay approximately €396,000 for accepting the unlawful donations. Criminal proceedings involving Weidel and other district officials were discontinued in September 2021 because prosecutors found insufficient evidence of criminal wrongdoing.

Weidel’s spokesman has rejected suggestions that she misrepresented events. He maintains that she had discussed possible contributions with several potential supporters but had neither anticipated specific amounts nor expected the payments from the Swiss companies concerned.

The new material does not establish that Weidel knew the identity of the ultimate donor or participated in concealing the source of the funds.

Emails reveal divisions over the party’s radical wing

Another development concerns Weidel’s earlier relationship with Björn Höcke, the influential leader of the AfD’s Thuringia organisation.

According to correspondence examined by WELT, Weidel expressed serious reservations between 2015 and 2017 about the influence of nationalist and extremist elements within the party.

She warned colleagues that associations with the anti-Islam Pegida movement and the far-right National Democratic Party risked alienating mainstream conservative voters, particularly in western Germany.

Her private concerns contrast with her subsequent accommodation of Höcke’s influence within the AfD.

The correspondence provides evidence of the internal disagreements that accompanied the party’s transformation from an initially Eurosceptic political movement into one centred increasingly on immigration, national identity and opposition to Germany’s established parties.

The revelations are particularly relevant because Weidel now promotes proposals for substantial changes to Germany’s relationship with the European Union.

As EU Today previously reported, she has advocated withdrawing Germany from the euro and the Schengen passport-free travel area.

Could the material influence an AfD ban?

The leak arrives amid continuing legal and political arguments over whether the AfD threatens Germany’s constitutional democratic order.

In May 2025, the Federal Office for the Protection of the Constitution classified the party as a confirmed right-wing extremist organisation. However, a Cologne court issued an injunction in February 2026, preventing that classification from taking effect pending a final judicial decision.

The court acknowledged evidence of anti-constitutional tendencies within the AfD but found that the material presented was insufficient at that stage to establish that they characterised the party as a whole.

The leaked emails could potentially become relevant to future assessments.

Germany’s Interior Ministry has confirmed that domestic intelligence authorities can, in principle, consider available information when evaluating possible threats to the constitutional order.

Nevertheless, whether unlawfully obtained correspondence could be admitted as evidence, and what weight it would carry, would require separate legal examination.

A party ban can be imposed only by the Federal Constitutional Court. The present disclosures do not themselves establish the legal conditions necessary for such a decision.

Questions over authenticity and data protection

The scale of the archive introduces further complications.

The material reportedly contains bank statements, membership records, personal correspondence and other confidential information involving thousands of individuals.

Journalists have verified portions of the correspondence by comparing messages with independently retained originals. Handelsblatt’s examination, for example, identified previously exchanged emails whose contents matched records held by its own reporters.

However, verification of individual communications does not establish the authenticity of every document in the archive. Fabricated messages have also circulated online.

In an official statement on 21 October, the AfD described the breach as criminal data theft and said it would not authenticate individual documents for journalists.

The party has also reported the incident to the authorities.

For Germany’s political institutions, the affair now presents several distinct questions: whether historical campaign finance arrangements were accurately disclosed, what the correspondence reveals about the party’s internal decision-making, and whether any of the documents provide evidence relevant to ongoing constitutional scrutiny.

Those questions remain open as investigators and journalists continue examining the archive.

'Big Short' investor Michael Burry says Anthropic's IPO filing shows the AI industry is 'catastrophically vulnerable'

28 October 2026 at 12:41
Michael Burry of "The Big Short" fame.
Michael Burry, the investor of "The Big Short" fame.

Bloomberg/Getty Images

  • "The Big Short" investor Michael Burry says Anthropic's IPO filing has fueled his worries about AI.
  • Burry said a dense web of AI deals has made the industry "catastrophically vulnerable."
  • Writing on Substack, Burry described AI financing arrangements as "garish and audacious."

Michael Burry says Anthropic's IPO filing this week has reinforced his concerns that the entire AI ecosystem is at risk of disaster.

The investor of "The Big Short" fame wrote in a Substack post on Tuesday that the first in-depth look at Claude's parent company, ahead of what could be the biggest IPO in history, threw up a bunch of red flags.

Burry pointed to Anthropic's huge spending commitments, slowing revenue, and tangled ties.

He said that Anthropic has struck deals to buy about $537 billion of compute from the likes of Amazon, Alphabet, and Microsoft, and reached preliminary agreements worth hundreds of billions more with others such as SpaceXAI, putting its total commitments at about 12 times its current annual run-rate revenue.

"This is not stated clearly in the S-1, and in my view it is the most deserved headline from it," Burry wrote in a Tuesday Substack post.

He underscored how hyperscalers like Amazon and Alphabet act as Anthropic's "lenders, vendors, channel providers, and shareholders." He also outlined its deal with Broadcom, which involves Apollo and Blackstone and includes convertible notes and structured credit tranches.

"Just remember, the reason this is so complex is because too much debt is needed, and it must be unloaded from the balance sheets of those involved," Burry wrote.

"While some may see all the circularity and connectedness as security on the way up, and that is not wrong, it does leave the entire organism catastrophically vulnerable either on a pause or on the way down," he added.

He also described financing arrangements in the AI space as "garish and audacious," and said hyperscalers aren't generating enough cash to fund the AI buildout so they're resorting to "Byzantine" deals.

Burry said it was a "very similar" situation with vendor financing during the dot-com bubble, saying "people keep making the same mistakes with every new thing."

Burry's worries

In its filing, Anthropic said its revenue surpassed $16 billion for the first six months of this year, a 14-fold increase from the first half of 2025. Its operating loss narrowed by about two-thirds to below $700 million, and it generated nearly $4 billion in operating cash flow.

Burry initially commented on Anthropic's filing in a Substack chat thread on Monday.

He said that revenue was "slowing," citing Anthropic's claim that third-quarter revenue was 86 times the $197 million it generated in the fourth quarter of 2024, or about $16.9 billion.

That would mean Anthropic's revenue grew by about 46% between the second and third quarters of this year, after soaring 144% between the first and second quarters.

"Overall slowing of growth is not attributed to a decline in tokenmaxxing, but I did not expect that to be mentioned," Burry wrote.

A Substack comment by Michael Burry on Anthropic.
Michael Burry raised concerns about Anthropic's growth in a Substack comment.

Substack/Cassandra Unchained

Burry was referring to the trend of maximizing AI token consumption, which has fallen out of favor in recent months given its costs.

In another comment, Burry wrote that large language models (LLMs) like Claude are "improving" and "already being used more efficiently and that trend will continue, to the detriment of their growth rate."

Burry said he's focused on the complexity and fragility of the debt financing many AI deals, hurdles to installing new graphics chips shoring up demand for older chips, a potential crash in memory chip prices once the shortage eases, compression and small language models (SLMs) reducing the need for computing power, and the "fundamentals behind not just companies but the deals they are doing."

Michael Burry laid out his chief concerns about LLMs.
Michael Burry laid out his chief concerns about LLMs.

Substack/Cassandra Unchained

Responding to a subscriber who said that Big Tech companies are shifting from Anthropic's AI models to their own, and that tokens are rapidly being commoditized, Burry wrote: "Yes, that is what I hear."

Anthropic did not immediately respond to a request for comment on Burry's posts.

The contrarian investor shot to fame after his massive wager against the mid-2000s housing bubble was chronicled in the book and movie "The Big Short." He pivoted from running a hedge fund to writing about his personal investments on Substack last winter.

A recurring theme of his work since then has been deep skepticism of the AI boom. He's flagged slowing growth, overinvestment in microchips and data centers, aggressive accounting, hidden liabilities, and circular financing deals.

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AI is making scams against older Americans more convincing. Experts share how to spot the new red flags.

27 October 2026 at 09:00
Craig Newmark, Don Grant, Amy Nofziger
Craig Newmark, Don Grant, Amy Nofziger (left to right) shared their perspectives on how older Americans can best prevent getting scammed.

Craig Newmark/Sabre Wealth/AARP

  • Cybersecurity experts found severe PHP bugs that could allow attackers to hijack web servers.
  • AI is being used to exploit vulnerabilities, making Americans more susceptible to scams.
  • Experts stressed basic cyber hygiene and scam awareness, especially for older Americans.

In just two days, AI exposed critical flaws in a programming language behind 70% of all websites. That may have opened the door for a rush of scams — especially those targeted to vulnerable populations like older Americans.

Last week, cybersecurity researchers uncovered two severe bugs in the PHP programming language. Attackers could hijack web servers and execute remote code. This prompted the PHP Foundation to release emergency patches to prevent widespread hacks, and governments, cybersecurity agencies, and businesses quickly moved to do damage control.

Though some experts said there could have been more problems had these flaws not been immediately addressed, such a crisis can happen again. As AI becomes more advanced and widespread, Americans are becoming more exposed and susceptible to scams.

Scams have been pervasive for decades, starting with physical mail and landline telemarketing. But they've gotten significantly more complex and deceptive, now integrating AI in ways that even tech whizzes may not spot. Older Americans are often the main targets of fraud, losing billions in fraud. An AARP survey from April found that 4 in 10 older Americans have lost money to fraud.

With attackers pouncing on any vulnerability to steal personal details or get money, five experts told Business Insider that now is the time to get ahead on scam prevention. Their quotes have been lightly edited for length and clarity.

Craig Newmark, founder of Craigslist, who founded the cybersecurity awareness campaign Take9
Craig Newmark
Craig Newmark advises families to take 9 seconds to pause before clicking on unknown texts.

Craig Newmark

What are some of the most common scams targeting older Americans?

Hackers are using AI to ditch the typos and make scams harder to spot. AI also makes it easier to produce large numbers of targeted scams. This includes AI voice cloning and scans of social accounts for personal details. These scams are on the rise and hurting real people, including older folks like me.

How should families react to all the recent headlines about system vulnerabilities?

Don't panic, but don't ignore them either. It shouldn't be up to regular folks to outsmart scammers. The best thing for families to focus on is basic cyber hygiene.

Organizations like Google and Apple are working hard to block scams, particularly on phones. It's just as important that we prepare loved ones with the tools to protect themselves as scammers become more sophisticated.

What are ways in which you work to make people more cautious about scams?

I've been fighting scams for 25 years. I take them personally. That's why I founded Take9 in 2024 to help people understand how to protect themselves and stay safe online.

Scams are overwhelming, and people often don't know where to begin. My advice is to start with the basics: Take 9 seconds to pause before clicking on unknown texts or links.

Once they've got that down, try multi-factor authentication, password managers, passkeys, and single sign-on. Family codes are an effective method to keep your loved ones safe, too.

Don Grant, certified financial planner at Sabre Wealth and CFP Board Ambassador
Don Grant
Don Grant advises that having open conversations about financial fraud is one of the most effective ways to educate older Americans.

Sabre Wealth

What are some of the most common scams targeting older Americans?

Scams often involve impersonation of an institution or government agency like the IRS, Medicare, or Social Security. Fake technical support scammers contact you with claims of a breach at your bank or financial institution.

A good friend and client is in his mid-60s, is a single Notre Dame graduate, and is a retired university English professor. He talked incessantly about his gorgeous, accomplished girlfriend. She has sent him photos, but he had never met her in person, nor via video chat.

Fast forward to earlier this year. They are no longer an item. He reluctantly admitted that she was attempting to scam him. He did send her about $1,200 to help get her 9-year-old daughter into a music school. When she hit him up about 10 times so she could move, he figured it out and cut the ties. From what we pieced together, this was an AI-assisted romance scam.

How should families react to all the recent headlines about system vulnerabilities?

A security breach at an institution doesn't automatically mean that your accounts have been hacked. However, it does mean it's time to change your login credentials.

Set up account notifications for withdrawals, transfers, password changes, and anything to do with your accounts. Never respond to an unsolicited email from a site or financial institution with which you do business. Don't call the number provided in the communication or click the provided link. Take the time to log into a verifiable site and call a verifiable number with questions.

What are ways in which you work to make people more cautious about scams?

Communication and education are critical. I have open conversations about financial fraud, anonymously citing actual situations where a scammer attempted to separate them from their money. Recounting others' experiences seems to really drive the point home. We also insist that all clients designate a trusted contact we can reach if we notice unusual activity or have concerns about possible financial exploitation.

Removing the stigma that they are "stupid" if they are scammed is paramount. Many victims are embarrassed to admit they've been deceived, and that embarrassment can prevent them from seeking help.

Alex Jacquez, Groundwork Collaborative's senior vice president of policy, advocacy, and research
Alex Jacquez
Alex Jacquez notes that companies should better protect consumer data to avoid putting the onus entirely on families.

Groundwork Collaborative

What are some of the most common scams targeting older Americans?

The FTC recently released its Protecting Older Consumers report, describing fraud in 2025. The top fraud types by incident report numbers for older people include online shopping, business impostors, government impostors, and investment scams. These, plus romance scams, are the top fraud types by total dollars lost for older people.

Scammers use AI to create deepfakes, clone voices, and send phishing messages. These types of fraud are not new, but AI makes them increasingly convincing and enables them to be carried out on a larger scale. Scammers also use AI in predictive targeting to find the most susceptible individuals.

In March 2026, Interpol warned that "AI-enhanced fraud is 4.5 times more profitable than traditional methods" because AI agents can complete the fraud on behalf of the scammers.

How should families react to all the recent headlines about system vulnerabilities?

Families should see the recent headlines about system vulnerabilities as part of a larger problem. Companies collect lots of information on users and fail to protect it. Now, consumers are exposed to data breaches and sophisticated scams.

What are ways in which you work to make people more cautious about scams?

We put out material for consumers and policymakers highlighting how companies are using more sophisticated techniques and technologies to rip them off.

While there are best practices people can follow to remain alert and vigilant against common scams, especially in the AI age, we believe that any real fix must be systematic and undertaken by policymakers. We need companies to better protect consumer data, stop collecting irrelevant data, and stop using it to squeeze consumers for every last dime.

Amy Nofziger, senior director of victim support, AARP Fraud Watch Network
Amy Nofziger
Amy Nofziger said the goal of fraud education isn't to live in fear.

AARP

What are some of the most common scams targeting older Americans?

Impostor scams remain the number one category reported to the AARP Fraud Watch Network Helpline. They will say there is a problem with your account and need to remotely access it, or they will say they are with the courthouse and you missed jury duty and demand payment to avoid being arrested.

AI hasn't changed human nature, but it has changed the scale, speed, and sophistication of scams. Criminals are still exploiting the same emotions they always have: fear, trust, loneliness, hope, curiosity, and urgency. We used to tell people to look for red flags like misspellings and poor grammar in emails, but with today's AI tools, those clues are often gone.

How should families react to all the recent headlines about system vulnerabilities?

It's understandable to be concerned by headlines about system vulnerabilities and data breaches, but the key is to focus on what you can control. The goal isn't to live in fear. It's to stay informed, slow down when something feels off, and ask for help. We don't have to do this alone.

What are ways in which you work to make people more cautious about scams?

AARP Fraud Watch Network helps individuals and families protect themselves from scams. It's a free resource available to everyone. We provide fraud prevention information, online tools, the award-winning Perfect Scam podcast, and a Fraud Watch Network Helpline that receives more than 100,000 calls each year.

Ali Tager, vice president of external affairs, National Cryptocurrency Association
Ali Tager
Ali Tager advises that people look for small errors in grammar or spelling.

National Cryptocurrency Association

What are some of the most common scams targeting older Americans?

Some of the most common online finance scams are relationship scams and impersonation. Giveaway scams are when scammers impersonate public figures, promising "free" money or crypto if users start by sending a small amount first. In phishing scams, fraudsters pose as a friend or a crypto exchange and ask victims to click links or share login details to steal private information.

Pump and dump scams occur when groups inflate the price of lesser-known crypto coins via online hype. When enough people join and spike the price, fraudsters quickly sell off their holdings for a profit, leaving others in the dust.

How should families react to all the recent headlines about system vulnerabilities?

Stay alert, not alarmed. Whether it's your bank, your Venmo account, or your crypto account, security should always be top of mind. Protecting yourself starts with recognizing common scams and practicing smart online habits.

For crypto holders, guard your private key or recovery phrase like you would your bank account number and password. No legitimate company will ever ask for it, so never share it, and keep physical backups in secure locations. Watch for small clues like odd sender addresses or sloppy spelling, and remember that deepfakes and fake websites can look real at first glance.

What are ways in which you work to make people more cautious about scams?

A scammer's greatest weakness is an informed community. The NCA is dedicated to helping everyday Americans understand and use crypto with confidence. Research shows that 72% of crypto holders cite scams and security as a concern. However, 76% of crypto holders say it has positively impacted their lives overall, while just 3% report negative impacts. Of those, about one-third are scam/fraud-related.

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