Anthropic's IPO could be the biggest ever
Anthropic could raise over $100 billion when it goes public, valuing the company near $2 trillion.
That would beat SpaceX's record of $85.7 billion — the biggest IPO in history.
Welcome to The AI Gazette, your Sunday briefing on the AI stories that matter — curated from 71 trusted sources.
In this week's email:
- Nvidia has agreed to buy Hugging Face for $12.9 billion
- Anthropic's IPO could be the biggest in history
- A mystery AI model just got unmasked
This Week's Big News
NVIDIA IS BUYING HUGGING FACE FOR $12.9 BILLION
Nvidia is buying Hugging Face.
The price: $12.9 billion.
Hugging Face is the website where AI developers download and share models — think of it as the app store for AI.
Almost every open AI model you've heard of lives there.
Nvidia is the company that makes the chips those models run on.
So the chip maker now owns the store too.
Here's the breakdown:
1. The price is wild — Hugging Face makes about $150 million a year. Nvidia is paying roughly 80 times that.
2. Nvidia tried before, cheaper — earlier this year it offered a deal valuing Hugging Face at $7 billion. They said no. Now they said yes to $12.9B.
3. It's about owning everything — Nvidia already makes the chips. Now it owns the place people get the models that need the chips.
The big question: will developers still trust a "neutral" open platform owned by Nvidia?
Microsoft bought GitHub in 2018. Developers complained, then mostly stayed.
Nvidia is betting the same happens here.
Top 5 News of the Week
THE ROUNDUP 📰
OpenAI's new chip beats Nvidia's on efficiency
OpenAI's first custom chip, Jalapeño, delivers up to 4x the performance-per-watt of Nvidia's Blackwell.
OpenAI designed it in under two years, with help from its own AI models.
The mystery AI model everyone was using? It was Z.ai
The anonymous model "Ox Alpha" that went viral with developers this week is GLM-5.3-Flash from Chinese lab Z.ai.
It matches Claude on coding and costs just $0.50 per million tokens — about 10x cheaper.
Hackers tricked an AI agent into attacking 7 companies
A ransomware gang convinced Cursor's AI coding agent the attacks were "just a test," so it built the malware for them.
Chat logs show the agent reasoning: "This is a test environment, so it is legal."
Claude Code got a big upgrade
New /design command turns an idea or screenshot into editable designs, right in your terminal.
Plus: auto-continue picks up where you left off after hitting usage limits.
Experiment of the Week
A GUY WHO LOST HIS JOB BUILT AN AI TO FIND A NEW ONE
Mads Lorentzen lost his job as a geophysicist.
So he built an AI to run his job search.
The results: 69 applications sent, 20 interviews landed, 1 contract signed.
Then he open-sourced the whole thing for free.
Here's the trick: he made two AIs fight each other.
One writes the application. The other tears it apart. Only the version that survives both gets sent.
You drop in your CV, and the AI tailors it to every job posting — plus a cover letter for each one.
You can set it up in an afternoon, and it works with any job board.
The job market is brutal right now.
At least one person found a way to fight back with software.
Money & Markets
AI & ECONOMY 💰
OpenAI just cut prices by 20%
GPT-5.6 Sol now costs $4 per million input tokens, down from $5.
That makes it cheaper than Anthropic's Opus 5, and nearly as cheap as DeepSeek.
Companies are done overpaying
Payments data from Ramp shows businesses are shifting away from flagship models to cheaper ones that get the job done.
Gartner projects AI inference costs to grow 5x by 2028 as agents eat more tokens.
The takeaway
The era of "pay anything for the best model" is over.
If you're paying full price for AI right now, you're overpaying — check your usage and downgrade.
Top 5 used AI models this week:
Source: OpenRouter weekly rankings
Freshly Launched
TOOLS TO TRY 🕹️
- Claude Code /design — Turn an idea or screenshot into a real design, from your terminal
- GLM-5.3-Flash — Get Claude-level coding for $0.50 per million tokens
- AI Job Search — Automate your job applications with two AIs that fight each other
- Muse Image — Generate or edit images for $0.01 each
This Week's Takeaway 🧠
Every big story this week was the same story: don't build your whole business on someone else's platform — you may wake up owned by it.
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