Tech stocks led declines globally overnight. The Nasdaq 100 closed down 1.54% yesterday. By contrast, the equal weight S&P 500 actually hit a record high yesterday—indicating that tech companies are the ones dragging down the broader index. “The main culprit has been another slide in chip stocks, with the Philly semiconductor index down -6.27%,” Henry Allen and his colleagues at Deutsche Bank told clients this morning.
ONE BIG THING
Sam Altman seeks new world order for AI
OpenAI founder Sam Altman has proposed a global framework to control AI and make it safe for humanity. In an op-ed for The Financial Times, he wrote: “A US-led international forum that establishes accepted standards, provides expert and impartial analysis of capabilities and risks, and makes the technology available to nations and companies that participate and follow the rules. This forum might include government representatives, independent technical experts and others. It could also serve as a governance mechanism over the labs, and guard against the commercial pressures that can lead to unsafe racing.” He cited aviation safety, global financial standards, and the International Atomic Energy Agency as examples of world bodies that set global standards in their industries.
ChatGPT is slowly losing audience to Gemini and Claude
Anthropic has overtaken OpenAI in terms of self-reported revenue and is slowly gaining on the latter in terms of users, too. OpenAI has said it is on course to generate $25 billion to $33 billion in annualised revenue in its most recent disclosure. Anthropic, by contrast, said in May it was on course to hit $47 billion and would be profitable in 2029, a year ahead of OpenAI.
“Anthropic overtook it in business subscriptions in May, according to data from Ramp. And Similarweb data shows monthly visits to ChatGPT fell below a majority of the generative AI market for the first time in May, suggesting consumers are increasingly willing to switch between models,” according to Adrian Cox of the Deutsche Bank Research Institute.
Outside of tech, the effect of AI isn’t showing up
This chart (below) from Torsten Sløk of Apollo Global Management shows the difference in profitability between the Magnificent Seven tech companies and all other companies. Obviously, profit margins at the AI hyperscalers are going through the roof, but it’s slow and steady for all other companies.
Sløk wants to know whether this is because the productivity gains from AI are taking much longer to show up in non-tech businesses.
“In a handful of sectors, software and tech above all, implementation is nearly immediate, since these firms can fold AI into their own products and processes overnight. But that is the exception,” he said in a recent blog. “The list of slow-moving sectors is long, spanning health care, banking and insurance, energy and utilities, defense and aerospace, pharma and life sciences, manufacturing, transportation and logistics, construction and real estate, education, legal and the public sector.”
The implication is that AI companies won’t be able to generate a great deal of revenue from non-tech companies for a long time. Reluctant non-tech clients, who don’t see AI adding ROI, may cut their AI token budgets. That would derail the AI revolution, he warns: “If token costs converge toward zero for most AI use cases, then there is not enough revenue for all hyperscalers even in a situation where compute demand surges higher.”
Don’t write off non-tech companies, yet
The profits within the S&P 500 may be heavily driven by tech companies, but the rest of them aren’t slouches, according to LPL Financial’s Jeff Buchbinder. “What might surprise you, though, is that S&P 500 EPS growth excluding the Magnificent Seven — bolstered by the memory makers — was 17.5% in the first quarter and is expected to eclipse 20.5% in the second quarter,” he said in an email to Fortune. Here is his forecast:
ALL THE PRESIDENT’S MONEY
For wealth managers, Trump’s 927-page financial disclosure is just a normal Tuesday
President Donald Trump’s latest financial disclosure has drawn attention for its sheer scale: thousands of stock trades, over $1 billion in crypto income, golf revenue, book royalties, all crammed into a filing that ran to 927 pages this year—compared with eight pages for Barack Obama’s final disclosure and 11 for Joe Biden’s. The optics practically invite suspicion: How does a sitting president buy and sell Nvidia, Apple, and Microsoft on the same day, sometimes dozens of times, without personally calling the shots?
But according to people who actually manage the investments for ultra-high net worth individuals—via high-volume, tax-optimized investing—a different picture emerges; those numbers seem pretty normal. Fortune’s Catherina Gioino has the details.
MORE FROM FORTUNE
‘It’s fair to ask whether it was worth it’: The Iran war has cost Americans $1,000 per household—and that’s a conservative estimate, Mark Zandi says – Tristan Bove
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen – John Kell
Anthropic’s AI models are back online after a two-week government standoff—settling the company and administration into a fragile truce – Tristan Bove
U.S. Polo Assn. CEO was told he wasn’t right for a promotion—so he ‘outworked’ anyone else who wanted the job for 6 months straight – Orianna Rosa Royle
Exclusive: A VC firm backed by Melinda French Gates just closed a $46 million fund to invest in caregiving – Emma Hinchliffe
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut – Emma Burleigh
CHART OF THE DAY
Democrats are losing faith in capitalism
Two-thirds of Democrats have a favorable view of socialism, but only 42% of them have a favorable view of capitalism, according to a recent Gallup poll. Piper Sandler’s Andy Laperriere thinks this trend has momentum.
“Consider where the Democratic Party is headed. Just in the last week, three progressive incumbent Democrats have been defeated in primaries by socialist candidates, including in Colorado last night. It’s true these were in deep blue districts, but this is no fluke,” he said in a note to clients.
“Fewer Democratic politicians want to step in front of a freight train by making the case for a market-based economy. Therefore, support for capitalism among Democratic voters weakens more, making it even more dangerous to buck the trend. … What would be a fluke is if a mainstream Democrat won the nomination in 2028.”
NUMBER OF THE DAY
$36,000
That’s the average cost of a wedding in 2025, according to data from wedding site Zola. “Average spending per customer on weddings has increased 8.5% year-over-year (YoY) through May 2026, according to Bank of America payments data,” according to BofA’s Liz Everett Krisberg and David Tinsley. “As for who’s getting married, it’s increasingly Gen Z. The number of Gen Z weddings has tripled versus 2019, with the number growing faster in some parts of the country than others.”
THE FRONT PAGES TODAY
Google loses legal fight over 4.1 billion-euro EU antitrust fine – CNBC
No expectant moms at the border: Trump’s birthright Plan B – Axios
Argentina angered by prospect of oil boom in Falklands – FT
Michael Burry Cites ‘Beginning of the End’ With New AI Short Bets – WSJ
‘Jealous’ Dimon Is Pushing JPMorgan to Catch Europe’s Fintechs – Bloomberg
What would a prenup between Taylor Swift and Travis Kelce look like? – NYT
ONE MORE THING
At Nvidia, no such thing as a free lunch
Tech companies notoriously provide their staff with free food—often breakfast, lunch, and dinner—in order to keep them working in the office for longer hours. Google’s HQ has about 30 different cafés. Not Nvidia. Gergely Orosz, a software engineer and author of The Pragmatic Engineer newsletter, highlighted the issue of Nvidia’s food policies in a thread on X after a recent visit to the company’s Santa Clara, Calif., headquarters: At Nvidia, you have to pay for your meals.
The meals are subsidised, however. A former intern who worked at Nvidia in 2014 shows that meals averaged about $6 each, or about $8.50 today. The intern’s blog is well worth a read—it includes photos from a party CEO Jensen Huang hosted at his house.
