Morning Scan

Anthropic's S-1 is out, China's AI trade is down 40%, and crypto keeps picking up federal charters. Money is also going to hotels, surgery centers, and an 11-person startup with a large seed round.

Machines & Minds

A good buy or 'the most ridiculous IPO of 2026': Anthropic's debut will be a referendum on AI

The S-1 is out, and the debate is whether it marks the AI trade's validation or its high-water mark. (Fortune)

China's Star 50 index of AI and chip leaders is down by 40% in under four months

Reuters reports the Chinese AI bubble has burst, with chipmaker CXMT off roughly 25% in the past month alone. (Reuters)

Expanding our partnership with GSA to bring Claude to all levels of government

A deeper federal contract lands just ahead of the IPO. (Anthropic News)

An 11-person startup raised $40 million to challenge robotics' data-hungry giants

Machenta trains robots in virtual worlds instead of collecting real-world data. Creandum and Union Square wrote a $40M seed check. (Business Insider)

IBM admits mainframes need to be modernized and will use AI to do the job

IBM's pitch as the world's most reliable vendor now comes with a request to let it fix the problem. (The Register)

Machines & Minds

Ripple gains final OCC approval to launch national trust bank and bring RLUSD under federal oversight (paywall)

Reserves and custody go federal while issuance stays with the New York-regulated entity. Other stablecoin issuers will be studying the structure. (The Block)

BlackRock joins SBI and Startale to link tokenized MMFs with Japanese yen stablecoins (paywall)

It's an MOU to "explore," but BlackRock exploring tokenized money market funds draws attention. (The Block)

Nonprofit Bon Secours Mercy Health strikes $5.7 billion deal for surgery center chain

A nonprofit system is buying its way to the top of the ambulatory surgery center market, a consolidation play. (STAT)

TKO's CEO Makes Case for $2 Billion Bid on Service Properties' Hotels

The wrestling-and-UFC owner wants a hotel portfolio roughly four times the size of its own. The target hasn't responded. (Skift)

Stagwell buys Freestar, putting publisher ad sales inside a holdco

Agencies are buying sell-side companies, a vertical play that carries conflict-of-interest risk. (Digiday)

Connected World

Uh-oh, it sounds like the iPhone Duo keeps cracking and users aren't happy about it

A small number of early adopters report cracked screens on Apple's foldable. (TechCrunch)

Japanese virtual desktop cloud hacked so hard it asks to be banned

GMO Internet warned customers that its desktop service for forex trading was compromised badly enough that it is asking them to stop using it. (The Register)

Duramobi's underwater speaker turns your pool into a sound system

A Bluetooth speaker that follows swimmers underwater. (Yanko Design)