Exponential AI Progress Challenges Investors

This week, we discuss Chainguard breaking the PHP embargo, Anthropic's S-1, and betting AI gets exponentially better. Plus, when do kids age out of trick-or-treating?

Watch the YouTube Live Recording of Episode 596

Runner-up Titles

• That’s not my problem
  
• I’m here for the drama
  
• What is he, Mr. Peanut?
  
• Private equity Halloween
  
• Responsible Disclosure minus Chainguard
  
• The conspiracy theory is actually real
  
• Cursor ride or die
  
• They’re betting \$80B it’s got legs
  
• I’m long on bureaucracy
  
• Kicked out of the WhatsApp group
  
• Officially on the naughty list
  
• Wheres my bug bounty
  
• Going on vacation send money
  
• The most famous of last words
  
• Very bad at exponential thinking
  
• Nobody codes by hand anymore
  
• Putting it under a mattress
  
• Were not using the same software
  
• Human beings are not needed

Rundown

• PHP2Shell and the Broken Embargo
  
  • Today's PHP Security Release, and How We're Strengthening PHP Security
    
  • PHP blames Chainguard for putting huge chunks of the web at risk
    
  • Dan Lorenc on the PHP embargo and Chainguard shipping fixed builds early
    
  • PHP2Shell: AI-discovered flaws put ~70% of websites at risk of takeover
    
  • Cognition's open-source Devin plugin patches PHP2Shell, Node.js, GitLab flaws
    
  • Linux kernel vulnerabilities accidentally posted to public mailing list
    
  • CRA Reporting Obligations Start September 2026: What EOL Dependencies Mean
    
  • It's OK not to embargo
    
• Anthropic's S-1
  
  • Anthropic Reveals 14-Fold Increase in Growth Ahead of I.P.O.
    
  • Anthropic: Benchmarking the S-1 Data
    
  • Anthropic S-1 Analysis: How 7 Key Metrics Stack Up
    
  • Anthropic's IPO prospectus could go public as early as today
    
  • Anthropic files its S-1 to IPO under ticker ANT
    
  • Anthropic's draft IPO prospectus: ~\$450B in mostly noncancelable cloud deals
    
  • OpenAI racing to raise ~\$30B at \$1.4T valuation ahead of Anthropic's IPO
    
  • Cathedral's AI agents breached Anthropic's business systems in under 12 hours
    
  • DeepSeek raises $15Bat~$74B, accelerates Shanghai listing to early 2027
    
• AI Capex vs. AI Payoff
  
  • Meta seeks ~\$95B for AI buildout; Nvidia, AMD, Broadcom may invest
    
  • Meta to raise \$95B for AI
    
  • Meta beats Q3 revenue expectations, announces 2-for-1 stock split
    
  • Nasdaq's worst day since June as Meta's \$825B AI tab rattles investors
    
  • Amazon cloud capacity sold out through 2027, CEO Jassy says
    
  • The hyperscalers report this week — and the AI spending bill comes due
    
  • Bank of America: data center market to top \$2T by 2028
    
  • Microsoft reveals Azure earnings for the first time
    
  • Apollo: No Signs of AI Payoff Outside the Tech Sector
    
  • Apollo: AI has delivered "zero financial payoff" outside tech
    
  • IBM's Krishna: some AI spending is "completely out of control"; stock falls 7%
    
  • Cloudera: 89% of enterprises redesigned AI use cases over rising token costs
    
  • "Dark GPUs" at Amazon show the limits of the AI buildout
    
  • Bernstein: only ~35% of announced US data center capacity likely to materialize
    
  • Nearly 50% of 2026 data center bonds are junk
    
  • Wyndham deploys agentic AI across its hotel network
    
  • Customers Bank uses AI to close commercial loans in 7 days vs 30-60
    
  • LSEG buys Octus for \$3.535B to feed Wall Street's AI
    
  • Gartner: agents will handle 70% of enterprise voice interactions by 2030
    
  • Microsoft's MAI-DxO diagnoses 83% of complex cases vs 36% for doctors

Relevant to your Interests

• Google Cloud outage takes down Revolut, HSBC, Lloyds in the UK
  
• European regulators query Google over the London cloud outage, first DORA test
  
• Salesforce to buy Braze for \$5.66B, 58% premium
  
• Salesforce – Part Two
  
• Study: Grok picks Republicans in 92% of races, GPT-6.1 Sol Democrats in 97%
  
• There are stupid questions, just not that kind of stupid
  
• Ex-GitHub CEO launches a GitHub rival that reinvents the pull request
  
• Daytona reaches \$1B valuation for AI agent cloud infrastructure
  
• Nvidia-backed doubleAI debuts 'code execution' models
  
• OpenAI launches GPT-6.1 Terra at half the price of its siblings
  
• 10x engineer (AI Psychosis)
  
• Microsoft offers voluntary buyouts to 60,000 employees
  
• Microsoft offers buyouts to 60,000 staff, about 27% of its workforce
  
• Barclays to cut 5,000 jobs as AI drives efficiency gains
  
• Automattic begins layoffs following board upheaval and executive departures
  
• China urges agencies to mitigate AI job displacement
  
• Italy bans fully automated AI dismissals

Conferences

• SREDay Amsterdam, Nov 2nd, 2026 - Coté speaking.
  
• DevOps Amsterdam Meetup, Nov 10th, 2026 - Coté speaking.
  
• VMware Explore London, Nov 18-19, 2026, Coté speaking.
  
• Cloud Native Denmark, Nov 19th, 2026, Coté keynoting, Discount Code: CSVFTW
  
• Build Stuff, Dec 2-4, 2026, Vilnius, Lithuania. Coté speaking.
  
• cfgmgmtcamp, Ghent, Belgium, February 1-3, 2027
  
• SCALE 24x Pasadena, CA, April 1-4, 2027

SDT News & Community

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Recommendations

• Brandon: 
  
  • Ghostty 1.4.0
    
  • PodEditor Beta 
    
• Matt: Steel Beans
  
• Coté: YOTEL

Edited and produced with PodEditor, the native Mac podcast editor.