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Greetings N2K reader!

This week’s world famous news haiku competition™ is about new limits for a rent algorithm that prosecutors say lets landlords drive up prices. Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET today for consideration by your Cheddar peers! And now for something completely different!

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Who will IPO first, Anthropic or OpenAI?

• Wall Street drifts near its all-time high even as …

• OMG, it’s Spotify Wrapped time!

• San Francisco takes on Big Food

• Michael and Susan Dell give kids $250 each

• Poll of the day: Wrap THIS

• Don’t miss the Sunset gift guide!

What’s the stock market up to, eh?

$SPX ( ▲ 0.47% ) $DJI ( ▲ 0.04% ) $NDX ( ▲ 0.9% )

Companies mentioned in today’s newsletter

Anthropic, Open AI, $GOOG ( ▲ 0.4% ) , $LNKD ( 0.0% ) , $AIRBNB ( 0.0% ) , $MRVL ( ▲ 2.58% ) , $M ( ▼ 5.42% ) , $AEO ( ▼ 0.84% ) , $DELL ( ▼ 0.12% )  

Who will IPO first, Anthropic or OpenAI?

Anthropic, the AI (which we’re told stands for “artificial intelligence”) firm behind the Claude chatbot, is setting its sights on one of the largest IPOs in tech history in 2026. In preparation, Anthropic has partnered with a law firm renowned for high-profile IPOs like those of Google $GOOG ( ▲ 0.4% ) and LinkedIn $LNKD ( 0.0% ) . The move sets the stage for a fierce public market race with OpenAI, the creators of ChatGPT.

Anthropic CEO Dario Amodei is steering the company through significant growth, with notable milestones already achieved. Recently, Anthropic closed a private funding round valuing it between $300 billion and $350 billion, including a combined $15 billion investment from Microsoft and Nvidia. In the race toward IPO, Anthropic also made strategic hires, such as Krishna Rao, a former Airbnb $AIRBNB ( 0.0% ) executive instrumental in that company’s 2020 IPO.

Speaking to the Financial Times, an Anthropic spokesperson stressed that going public isn’t imminent, noting, “It’s fairly standard practice for companies operating at our scale and revenue level to effectively operate as if they are publicly traded companies."

Although that’s the sort of thing you’d say to the Financial Times even if you were planning a float because you can’t divulge “material nonpublic information” at a time like this. I know, because my hedge fund buddy told me that on a squash court, where I used to get all my totally legal stock tips.

Meanwhile, Anthropic is expanding aggressively, allocating $50 billion to AI infrastructure and ramping up its international workforce. Investors are enthusiastic, with some seeing Anthropic’s potential IPO as an opportunity to “seize the initiative” from OpenAI, although the rival was recently valued at half a trillion dollars, so nobody’s quaking in their boots or anything.

Combined, investors now think Open AI and Anthropic are “worth” more than the entire GDPs of Belgium, Ireland, Argentina, Sweden, Israel, Singapore, the UAE, Austria, Thailand, Norway, the Philippines, Vietnam, Bangladesh, Malaysia, Denmark, Colombia, Hong Kong, South Africa, Romania, Pakistan, the Czech Republic, and more than 150 other countries.

Neither company has made a profit nor expects to for years.

In a tech environment fraught with obviously unfounded fears of an "AI bubble" (#NotFinancialAdvice), the success of Anthropic's IPO could redefine market appetite for cutting-edge, loss-making AI giants — and dictate the industry's momentum for years to come. Or the whole darn stack of cards could collapse flatter than your mom’s soufflé that time you opened the oven before she whipped it out, pancaked, at her supposedly hifalutin dinner party and you caught hellfire for it despite scrupulous denials she saw right through. #SouffléKiller #WhatBubble?

Song of the Day: Ed Sheeran, ‘Skeletons’

"Skeletons," from Ed Sheeran's 2025 deluxe album Play, explores relationship conflict through rhythmic, experimental sounds. Highlighted as a standout bonus track, it delves into revisiting past arguments instead of embracing intimacy, showcasing Sheeran's evolving musical style.

Ed, mate, you should enter our world famous news haiku competition™. You might even make the top five…

Wall Street drifts near its all-time high even as new jobs numbers worry

Wall Street approached its all-time high on Wednesday, fueled by strong profit reports and totally reasonably investor optimism. #NotFinancialAdvice.

Marvell Technology $MRVL ( ▲ 2.58% ) experienced a notable rise of 5.7% after beating analysts' profit expectations for the latest quarter. CEO Matt “Marvell at This” Murphy credited robust demand for data center products.

Retailers also showed strength, with American Eagle Outfitters $AEO ( ▼ 0.84% ) rallying 14% following a better-than-expected profit report. CEO Jay “The Sheriff” Schottenstein noted, “we saw a strong start to the holiday shopping season with an acceleration in demand across our brands during the Thanksgiving weekend.” Macy’s $M ( ▼ 5.42% ) also reported a profit surpassing forecasts, rising 1.8% and boasting a 34.1% gain for the year so far.

Capricor Therapeutics $CAPR ( ▲ 1.9% ) captured attention, soaring 370% after announcing promising results for its Duchenne muscular dystrophy therapy. But some major players like Microsoft $MSFT ( ▲ 3.11% ) and Nvidia $NVDA ( ▲ 2.5% ) faced declines.

Despite these gains, let’s say…concerning jobs data from ADP indicated non-government employers might have cut more jobs than they added in November. But the weak jobs numbers — absent government numbers, still missing since the shutdown — ironically bolstered expectations of a Federal Reserve interest rate cut next week.

Quote of the Day

OMG, it’s Spotify Wrapped time!

Spotify has unveiled its highly anticipated Spotify Wrapped, the annual recap offering users insights into their top songs, artists, and podcasts from the past year. With over 700 million users worldwide, Spotify claims this year’s edition is its “freshest, most action-packed Wrapped experience ever,” according to Marc “Not Marcella” Hazan, Spotify’s booster of the week.

This year includes new features such as top albums, audiobooks, and gamified elements like guessing your top song and discovering your “listening age,” which estimates the era of music you most enjoy. Wrapped Party, another new feature, allows friends to compare listening habits and win custom awards within their group.

Marketing professor Yakov “D’oh!” Bart said Wrapped transforms data tracking into entertainment: “Instead of feeling under surveillance, users basically feel seen,” he said. Although I sense, Yakov, that the essence of surveillance is just exactly that.

I’ve listened to Sophie Ellis Bextor sing this song 30 times this year apparently. Never mind surveillance, that’s stalker level of repeat plays!

Should you check your 401(k) today?

👍️ 

Yep. I mean why not enjoy it while you can, eh?

San Francisco takes on Big Food

San Francisco has taken a groundbreaking step by suing 10 major food companies, including Coca-Cola $KO ( ▼ 1.34% ) , Kraft Heinz $KHC ( ▼ 0.24% ) , and Nestlé USA, accusing them of knowingly marketing ultraprocessed foods that harm human health. The lawsuit, filed Tuesday, argues that these products have fueled a public health crisis, linking their consumption to conditions like obesity, diabetes, and cardiovascular disease. City Attorney David Chiu said: “We have reached a tipping point in the scientific research about the harm of these products… these products in our diets are deeply linked to serious health conditions, imposing enormous costs on millions of Americans and cities and states across our country.”

About 75% to 80% of what children eat comes from these ultraprocessed foods. But what’s the harm?

Consumer Brands Association’s Sarah “Pico de” Gallo, whose literal job it is to defend the companies, literally defended the companies: “There is currently no agreed-upon scientific definition of ultraprocessed foods… Americans deserve facts based on sound science,” she told NBC.

Health experts, however, liken this fight to the litigation against Big Tobacco. Laura Schmidt of UCSF said, “That’s how we got the attention of tobacco companies back in the 1990s… Public action like this is critical.”

Meanwhile, San Francisco continues to welcome AI companies with open arms, none of whom are doing anybody any harm whatsoever.

Michael and Susan Dell give kids $250 each

Michael and Susan Dell have pledged $6.25 billion to support the new "Trump Accounts" initiative for American children. This historic donation aims to provide an incentive for families to claim the new investment accounts, a part of President Donald Trump's tax and spending legislation, which was enacted in July.

The "Trump Accounts" program will see the U.S. Department of the Treasury deposit $1,000 into accounts for children born between January 1, 2025, and December 31, 2028. In addition, the Dells' donation will contribute $250 to each eligible child under 11, targeting children in ZIP codes with a median family income of $150,000 or less.

“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, CEO of Dell Technologies $DELL ( ▼ 0.12% ) .

Susan Dell added, “We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them.”

The accounts will allow contributions to be invested in index funds tracking the stock market, with funds accessible to children upon reaching 18 years of age. Brad Gerstner, founder of Invest America Charitable Foundation, remarked on the potential of these accounts, stating, “Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won’t last.”

The initiative is set to launch on July 4, 2026, marking the 250th anniversary of U.S. independence. President Trump lauded the Dells' donation as "truly one of the most generous acts in the history of our country."

$1,250 would be $7,000 by the child is 18 assuming no further investments. The average annual cost of infant care in the United States is $21,945.

Poll of the day: Wrap THIS

Poll of the day: The scent of Musk

We asked: “Is Elon Musk ‘making more than he takes’?“

You answered:

🟩🟩🟩🟩🟩🟩 No. That guy is taking more than he makes. (382)

🟨⬜️⬜️⬜️⬜️⬜️ Yes. That guy is making more than he takes. (121)

🟨🟨⬜️⬜️⬜️⬜️ He takes just like a woman, but he cries just like a little girl. (135)

638 Votes via @beehiiv polls

Don’t miss the Sunset gift guide!

Need the perfect gift? Or even a pretty good one? Sunset’s 2025 Holiday Gift Guide has you covered! With beautifully curated selections, there’s something for everyone on your list. Cozy up in the luxurious Flock Robe ($165) or add charm to any table with the Otto Napkin ($20). For the chefs, the Little Zipper Pot Holder ($35) is as stylish as it is practical. Nature lovers will adore the Case Study® Ceramics Birdhouse ($75) or the stunning Ceramics Small Cylinder with Stand. Want to give experiences? Share joy with the Sunset Box ($69.99) or a subscription to Sunset Magazine ($29.95). Shop now for thoughtful, unique gifts!

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