L.C.

Supersonic. Mach 1.21. Quarterhorse Mk 2.1 is now the world’s first privately developed, unmanned supersonic jet and the fastest unmanned aircraft flying today. This flight makes Hermeus the fastest company in aviation history to go from founding to supersonic flight - exactly 364 days after the maiden flight of our first aircraft. Now, we fly faster. A special thanks to @DIU_x, Director @OwenWest91, Maj. Gen. Joe "Solo" Kunkel, and Deputy Director Kyle Norman.

🦔Microsoft canceled its internal Claude Code licenses this week after token-based billing made the cost untenable, even for a company with effectively infinite cloud resources. Uber's CTO sent an internal memo warning the company burned through its entire 2026 AI budget in just four months. American AI software prices have jumped 20% to 37%, and GitHub (owned by Microsoft) is dropping flat-rate plans for usage-based billing across its products. My Take The AI subsidy era is ending in real time. The same company that put $13 billion into OpenAI and built the Azure infrastructure powering most of Anthropic's compute just looked at the bill from a competitor's coding tool and decided it was not worth paying. That is not a productivity failure on Anthropic's end. Token-based pricing is forcing every enterprise customer to confront the actual cost of running these models at scale, and the number turns out to be far higher than the flat-rate experiments suggested. This ties directly to my Gemini Flash post yesterday. Anthropic, OpenAI, and Google all raised effective prices in the last six months. Enterprises that built workflows assuming AI costs would keep falling are now watching annual budgets evaporate in months. Two outcomes look likely from here. Either enterprises scale back AI usage to fit budgets, which slows the revenue ramp the labs need to justify their valuations ahead of IPOs, or the labs cut prices and absorb the losses, which makes the unit economics worse at exactly the wrong moment. Both paths land in the same place, the numbers stop working, and somebody has to take the writedown. Hedgie🤗

Leopold Aschenbrenner's 13F never came on Friday. Here is the REAL reason why, and what it tells you: The most likely explanation is that he requested confidential treatment from the SEC. Confidential treatment is a legal tool that lets large funds delay disclosing positions they are still actively accumulating, sometimes for UP TO A YEAR. Funds use it for one reason: they are building a position big enough that public disclosure would MOVE THE PRICE AGAINST THEM before they are done. If that is what happened here, it means Aschenbrenner is quietly accumulating something significant and does not want the market to see it yet. The 24 year old who turned $225 million into $5.5 billion in 12 months going dark on the one day he was legally required to show his hand is not nothing. Pay attention to what happens when this position finally becomes public. We are checking every day, and when it comes, we’ll share it here publicly. Turn on notifications so you don’t miss the signal, this is VERY important. Many people will wish they followed us sooner.

VERY INSANE! Dozens of USAF Planes are leaving Middle East Right Now from the past few hours Going Back to bases Something unfolding!

Investors have never used this much leverage: US margin debt surged +$83 billion in April, to a record $1.3 trillion. Over the last 12 months, margin debt has risen +$453 billion, or +53%. As a result, margin debt is up to a record 5.2% of US GDP. This is ~3 percentage points above both the pre-2008 Financial Crisis level and well above the 2000 Dot-Com Bubble peak. Market leverage is through the roof.

"Door To Doom Has Opened" As Hartnett Spots "Obvious Echo" To 1999 And 2009 zerohedge.com/markets/door-d…

BREAKING: Iran has moved to take full control of all 7 undersea internet cables passing through the Strait of Hormuz.

Please warn your friends and family ! - Strong earthquake (possibly major) is likely to hit the San Francisco Bay during the next 48 hours.

@elonmusk Is it because of the model or just massive computing ?

Try Grok

BREAKING: The ratio of US leading to coincident economic indicators is now down to 0.84, matching the 2008 Financial Crisis low. This comes as the Leading Economic Index (LEI) fell -0.6% MoM in March, posting its 7th monthly decline out of the last 8. The Conference Board Leading Economic Index (LEI) tracks forward-looking data, including consumer expectations, manufacturing orders, weekly hours, and initial jobless claims. At the same time, the Coincident Economic Index (CEI) measures current economic conditions in real time, such as nonfarm payrolls or personal income, excluding government social security or unemployment payments. This ratio is now on track for its 5th consecutive annual decline, the longest streak on record. In the past, such depressed levels have never occurred outside of a recession. The US economy and the stock market are moving in opposite directions.

De l’Elysée à la société Archange, l’intrigante nébuleuse de militaires et d’ex-militaires suspectés d’avoir compromis des documents secret-défense lemonde.fr/societe/articl…

BREAKING: Berkshire Hathaway announces its cash balance is now up to a record $397 billion. The company sold a net -$8.1 billion worth of stocks last quarter, marking its 14th-consecutive net quarterly sale.

Massive buybacks are coming to the US market: Buyback authorizations across the Russell 3000 surged +36% YoY, to a record $428 billion so far in 2026. Authorizations are now +176% above the same period in 2020. At a historical execution rate of ~90%, US corporates are now on track to repurchase a record ~$1 trillion in shares this year. In 2 weeks, the corporate buyback window will reopen following the earnings blackout period. This will bring an additional wave of demand for stocks at a time when the market is already experiencing a historic run. US corporations are set to be major buyers in the equity market.

The IPO market is about to make history: Anthropic's pre-IPO stock, one of the most anticipated IPOs of all time, now has an implied market cap of $851 billion on Jupiter. In October 2025, the value of a share of Anthropic's pre-IPO stock on Jupiter was as low as ~$122. Just 7 months later, and these shares are up nearly +640%, to ~$900. These pre-IPO shares are structured instruments backed 1:1 by SPV exposure, giving investors direct price exposure to Anthropic before the IPO launches, allowing the market to dictate potential valuation. Between SpaceX's anticipated $1.7+ trillion IPO and both Anthropic and OpenAI targeting $1+ trillion, the IPO market is about to witness history. The AI Revolution is accelerating.

The SpaceX IPO is being read as a financing story. It’s not. It’s step 1 of a two-step plan to trigger every remaining tranche of Musk’s $139Bn Tesla compensation plan. IPO → fairness opinion anchor Merger → combined entity ~$3.3T $3.3T → every milestone hit simultaneously Bloomberg excludes the entire plan from Musk’s net worth (“contingent”). The merger makes it certain. Largest individual comp event in public markets history. Structured over 18 months.

Optical stocks have become the hottest trade in the AI space: Lumentum, $LITE, is up +1,137% over the last 12 months, the 2nd-best performing stock in the S&P 500. Over the same period, Applied Optoelectronics, $AAOI, is up +551%, Coherent, $COHR, +282%, Corning, $GLW, +223%, and Fabrinet, $FN, +176%. This marks a massive outperformance of the Nasdaq 100, which returned +23%. These companies make optical components that use light instead of traditional copper wiring to move data inside AI data centers. This technology has gained popularity as AI infrastructure demands faster and more efficient communication. In early March, Nvidia, $NVDA, announced it would invest $2 billion each in Lumentum and Coherent. Optical stocks are the latest beneficiary of the AI boom.

DANGEROUS WARNING ! - ALERT ! - 7.0 earthquake is likely in the Los Angeles Basin during the next 24 hours. (5pm update) Please see forecast maps and earthquake watch box.

US technology stocks have rarely ever been this cheap: The S&P 500 Information Technology index is now trading at just a 4% forward P/E premium to the S&P 500, the lowest since January 2019. This percentage has fallen -32 points since October 2025, one of the largest discounts on record. In other words, tech stocks are the cheapest relative to the broader market in 7 years. By comparison, the technology sector was ~47% more expensive than the S&P 500 at the June 2024 peak. Tech stocks are now on track to become cheaper than the S&P 500 for the 1st time since 2017. Is it time to buy tech?

Hedge funds are dumping cyclical stocks at an aggressive pace: The long/short ratio of hedge funds in US non-consumer cyclical stocks, which include Energy, Materials, Industrials, Financials, and Real Estate, is down to 1.68, the lowest since May 2025. Hedge funds have sold stocks in these sectors for 9 consecutive weeks. Sales accelerated after the Iran War began on February 28th, completely wiping out all cumulative net purchases since the start of 2025. As a result, net trading flow has turned negative for the first time since May 2025, indicating that hedge funds are now net short this group of stocks. Hedge funds are betting that the worst of the economic impact is still ahead.