OpenAI's IPO Filing Meets a Hugging Face Breach as AMD Claims 75% Hyperscaler CPU Share

OpenAI files for a trillion-dollar IPO the same week a pre-release model breaches Hugging Face and 42 state attorneys general open a coordinated investigation. Patrick Moorhead and Daniel Newman also break down AMD's hyperscaler CPU numbers from Advancing AI, the Moonshot distillation accusations, a wave of coordinated AI governance moves in Washington, and a stacked earnings slate spanning TSMC, Alphabet, IBM, ServiceNow, and Intel. The handpicked topics for this week are: OpenAI compresses a trillion-dollar IPO filing, a 42-state AG investigation, and a Hugging Face breach into five days: OpenAI and Anthropic both filed S-1 paperwork the same week 42 state attorneys general opened a coordinated investigation into OpenAI's data handling and safety practices, and a pre-release model reportedly breached Hugging Face days later. Moorhead and Newman question the timing, noting a rogue-agent narrative surfacing in the same week as a trillion-dollar valuation push draws obvious scrutiny. (The Decode) AMD's Advancing AI event puts a number on its hyperscaler momentum: Lisa Su confirmed Helios ships at the end of Q3 with volume ramping in Q4, backed by two-gigawatt capacity commitments from Microsoft and Anthropic and a claimed 70 to 75 percent share of hyperscaler CPU deployments. Moorhead points to NVIDIA's multi-layer software stack as the harder barrier AMD still has to close. (The Decode) Washington accuses Moonshot of distilling Anthropic's models days after Xi Jinping's WAIC keynote: Xi launched a 29-country AI cooperation organization at the Shanghai World AI Conference, and US officials Kratsios and Bessent followed with claims that Moonshot's Kimi K3 model shows data overlap with Anthropic's Opus models. Newman points to NVIDIA hardware in the training runs as evidence the distillation question extends beyond software alone. (The Decode) Five layers of government moved on AI oversight in a single week: Congress drafted a breach-response framework in reaction to the Hugging Face incident, the White House's 30-day pre-release review framework nears finalization, and state attorneys general and statehouses continue advancing their own rules in parallel. Moorhead notes nearly two decades of prior Capitol Hill engagement compressed into a single week of coordinated action, with each branch pursuing a different definition of the problem. (The Decode) Chinese open-source models now account for roughly a third of US developer traffic, and Moorhead and Newman take opposite sides on what it means: Moorhead argues enterprises are de-risking away from frontier-lab dependency, pointing to demand for smaller, workflow-specific open models. Newman counters with Vercel data showing those models capture 29 percent of gateway tokens against just 4 percent of revenue, framing the shift as a price discount that enterprise dollars have yet to follow. (The Flip) TSMC sells out CoWoS packaging capacity through 2026 and confirms a 10 percent price increase for 2027: The company posted a record quarter and committed $100 billion to its Arizona expansion on top of the pricing move. Newman calls the sustained capital spending a signal that the broader AI buildout still has runway. (Bulls & Bears) Google Cloud grows 82 percent as Alphabet posts its first-ever negative free cash flow quarter: The company raised its capital expenditure guidance to $195 to $205 billion and beat on revenue and EPS once one-time gains from its SpaceX and Anthropic stakes are excluded. Newman frames the spending as evidence Alphabet is prioritizing long-term AI infrastructure position over near-term cash generation. (Bulls & Bears) IBM misses Q2 revenue at $17.16 billion and cuts its full-year growth guide to 4 to 5 percent: Mainframe revenue fell 42 percent as enterprises redirected budget toward GPU and AI infrastructure purchases. CEO Arvind Krishna says a portion of the delayed deal flow has already resumed into the current quarter, pointing toward a potential rebound. (Bulls & Bears) ServiceNow crosses $1 billion in agentic AI annual contract value and raises its full-year guide: Agentic AI usage in production climbed 9x in nine months, and the company reaffirmed