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BREAKING: Anthropic has appointed former Fed Chair Ben Bernanke to its governance board.

AI compute prices are completely collapsing. This is going to impact AI data center gross margins at the worst possible time. Keep in mind, even at peak pricing all of these AI providers were extremely unprofitable. The decline in private credit funding has forced them to switch from heavily subsidized subscription pricing to token based billing. A desperate move, because corporations are now realizing LLMs are anywhere from 10-20x more expensive than they had been told. Like subprime loans in 2008, the teaser rate just expired. The rush for SpaceX, Anthropic and OpenAI to IPO is clearly because they see a double headwind of declining demand + declining gross margins. Price discovery and return to normal is the hallmark of every bubble. Did the AI bubble just pop?

BREAKING: The Fed’s balance sheet rose +$11 billion in the week ending June 17th, to $6.74 trillion, the highest since March 2025. Total assets have risen +$162.8 billion since the start of the year. This has been driven by Treasury holdings, which have surged +$251.8 billion over this period, to $4.49 trillion, the highest since June 2024. At the same time, holdings of Mortgage-Backed Securities have declined -$74.2 billion, to $1.96 trillion, the lowest since September 2020. The Fed's balance sheet is now 76% above pre-pandemic levels. The Fed's balance sheet continues to expand.

META MOVES TO LIMIT EMPLOYEE AI USAGE AS COSTS REACH BILLIONS