OpenAI Execs Are Panicking

A close-up photograph OpenAI CEO Sam Altman as he fields questions from reporters.
Chip Somodevilla / Getty Images; Futurism

An AI price war is brewing.

Corporations are reeling after finding that the cost to access powerful AI tools is soaring — despite showing no clear payoff. In one particularly unfortunate incident, according to Axios, the CFO of a company accidentally racked up half a billion dollars in Claude usage fees in a single month.

Put simply, the horrible economics of AI are finally starting to rear their ugly head. Astronomical capital expenditures by AI companies are starting to trickle down to users — and they’re not liking what they’re seeing.

Meanwhile, as the Wall Street Journal reports, executives at OpenAI are pondering whether to kick off a price war with the company’s biggest competitor, Anthropic. By dramatically lowering prices, the company’s reportedly hoping to steal users, while also anticipating similar price cuts by its competitor.

Put simply, pricing is turning into a major headache for AI leaders.

“That went from, at the beginning of this year, an issue that never came up — people were totally happy with the amount they were spending — to all of a sudden, a huge issue,” OpenAI CEO Altman admitted during an event last week.

“I think we’ll have a lot of ways we can help people get more value for less spend,” he added.

It’s a major conundrum for all players involved. AI companies have been bleeding tens of billions of dollars as costs for data center construction projects mount. Cutting prices now could make the situation even more dire, deteriorating already disastrous profit margins.

Anthropic and OpenAI have been caught in a heated race, with the former making major gains through its enterprise-focused coding tools as of late. Its recent advancements clearly rattled the latter, considering the latest news.

Both companies have confidentially filed for an IPO within the last ten days, raising enormous stakes. However, the fact that both are scaring away new users thanks to soaring prices isn’t exactly a vote of confidence to investors, which could soon force AI executives to rethink their business models.

More on AI prices: Corporations Reeling From Huge AI Costs With No Clear Benefits


  • Market Chatter: Nvidia Hires Former Intel Lobbyist Bruce Andrews to Head Washington Affairs

    Nvidia (NVDA) has hired veteran lobbyist Bruce Andrews to lead its government affairs in Washington,

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  • Wheat Holding Firm as USDA Cuts Production

    Wheat field under cloudy blue sky by Beth MacDonald via Unsplash
    Wheat field under cloudy blue sky by Beth MacDonald via Unsplash

    The wheat complex is showing marginally mixed trade on Thursday, with the hard red contracts higher. Chicago SRW is the weak spot, with fractional Thursday losses. KC HRW futures are leading the way higher, up 1 to 3 3/4 cents. MPLS spring wheat contracts are up 1 to 3 cents at midday.

    FAS released their weekly Export Sales data this morning, with old crop sales of 95,094 MT for the last 4 day of the 2025/26 marketing year, in the middle of the estimated net reductions of 100,000 MT to sales of 100,000 MT. There were 298,570 MT in unshipped sales carried over from that marketing year. New crop sales exceeded the trade estimated range of 200,000 to 600,000 MT, at 666,259 MT in that week.

    More News from Barchart

    Wheat production via the monthly Crop Production report was shown at 1.029 bbu for winter wheat, an 18 mbu cut from last month and below estimates. Yield was trimmed by 0.8 bpa to 46.8 bpa, as harvested acres were left unchanged. Much of the production cut was via HRW, down 18 mbu to 496.9 mbu, with SRW trimmed by 0.6 mbu to 300.25 mbu and white winter up 0.7 mbu to 232.59 mbu is expected to be down 7 mbu to 508 mbu, the SRW up 1 mbu to 302.

    In the WASDE, old crop US stocks were steady at 935 mbu with new crop US carryout cut y 18 mbu to 744 mbu, all due to the production drop. World carryout for 2025/26 was up 0.74 MMT to 279.95 MMT. New crop was up 0.38 MMT to 275.42 MMT.  Australia production was down 2 MMT to 28 MMT, with Russia up 2 MMT to 88 MMT.

    Expana estimates the EU wheat crop at 129.2 MMT, up 0.4 MMT increase from last month.

    Jul 26 CBOT Wheat  is at $5.87, down 1/2 cent,

    Sep 26 CBOT Wheat  is at $5.99, down 1/2 cent,

    Jul 26 KCBT Wheat  is at $6.34 1/4, up 3 3/4 cents,

    Sep 26 KCBT Wheat  is at $6.41 1/2, up 1 1/4 cents,

    Jul 26 MIAX Wheat  is at $6.19 1/2, up 1 1/2 cents,

    Sep 26 MIAX Wheat  is at $6.45 3/4, up 2 1/4 cents,

    On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com


  • Investors Heavily Search Intuit Inc. (INTU): Here is What You Need to Know

    Intuit (INTU) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

    Shares of this maker of TurboTax, QuickBooks and other accounting software have returned -23.5% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Computer - Software industry, to which Intuit belongs, has lost 3.8% over this period. Now the key question is: Where could the stock be headed in the near term?

    While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

    Revisions to Earnings Estimates

    Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

    We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

    For the current quarter, Intuit is expected to post earnings of $3.55 per share, indicating a change of +29.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +31.2% over the last 30 days.

    The consensus earnings estimate of $23.79 for the current fiscal year indicates a year-over-year change of +18.1%. This estimate has changed +4.2% over the last 30 days.

    For the next fiscal year, the consensus earnings estimate of $27.33 indicates a change of +14.9% from what Intuit is expected to report a year ago. Over the past month, the estimate has changed +2.9%.

    With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuit.


  • Employers drop GLP-1 weight loss drug coverage as use surges

    Quartz · GettyImages/Tatsiana Volkava

    Coverage of GLP-1 weight loss drugs is being phased out by a growing number of large U.S. employers heading into 2027, a trend driven by climbing overall costs that have persisted even as the per-unit price of individual medications has declined. The trend is documented in a survey from Business Group on Health, a nonprofit health policy organization focused on large employers, which found that roughly one in ten companies currently offering GLP-1 coverage for obesity said they do not expect to do so in 2027.

    The survey, completed in February and March 2026 by 105 Business Group on Health members, found that 67% of large employers currently cover GLP-1s for weight management. Of those, only 72% said they were likely to maintain that coverage in 2027. Employers that do not cover the drugs today are unlikely to add coverage in the future, the group said.

    Nearly eight in 10 surveyed employers said GLP-1s are driving an increase in their company's health care costs. "Against the backdrop of anticipated double-digit health care cost increases, fueled to a large degree by GLP-1s and overall prescription drug costs, companies cannot ignore the reality that GLP-1s have significant implications for health care budgets," said Ellen Kelsay, president and CEO of Business Group on Health, in a statement.

    Mercer, a benefits consultancy, put the figure lower in its own research, telling Reuters that 5% of companies it classifies as large employers — those with workforces exceeding 500 people — intend to eliminate the benefit next year. The two organizations also diverge on how broadly the drugs are currently covered: Mercer's tally puts adoption at 44% among employers in its large-employer category, well below the 67% reported by Business Group on Health.

    New pill-form versions of GLP-1 medications have brought in patients who previously avoided injectable treatments, widening the base of users and preventing any meaningful relief for employers on the cost side. Louis Zollo, a pharmacy practice leader at healthcare consultancy Segal, captured the dynamic in remarks to the outlet: "Even though we have seen the unit cost come down, the patient population keeps growing."

    Publicly visible pricing — both through direct-to-consumer channels and government-negotiated deals — has exposed a gap that many employers had not fully quantified before, Lauren Remspecher, a director at Purchaser Business Group on Health, told the outlet, referring to the disconnect between what employers pay through pharmacy benefit managers and what individuals can pay out of pocket.

    Employers that do continue covering GLP-1s for weight management are relying on strategies such as requiring participation in a weight management program, verifying clinical eligibility through biometric data, and restricting prescribing to specific providers, Business Group on Health said. The survey also found that 87% of employers anticipate that the availability of an oral GLP-1 will result in higher overall demand for the drugs.


  • Delaware Lawmakers Advance Bill To Ban All Cryptocurrency Kiosks Statewide

    Photo by BeInCrypto
    Photo by BeInCrypto

    Delaware lawmakers have advanced House Bill 441. This bill would ban the installation, ownership, and operation of all crypto ATMs across the state.

    The bill, sponsored by Representative Cyndie Romer and Senator Spiros Mantzavinos, targets a class of machines that regulators say has become a tool for scammers.

    Why Delaware Is Targeting Crypto ATMs

    Federal data frames the urgency. The FBI's Internet Crime Complaint Center recorded more than 13,400 kiosk-related complaints in 2025, with losses totaling more than $388 million. That marked a 23% rise in complaints and a 58% year-over-year increase in losses.

    In Delaware alone, residents filed 181 cryptocurrency-related complaints and 255 wallet complaints last year, totaling combined losses of nearly $26.9 million. More than half of those complaints came from people over 50.

    Romer argued that the machines offer little to regular crypto traders. She noted that kiosk fees can reach 20% of a transaction, compared with 0.4% to 1% on online exchanges.

    "These kiosks reduce digital currency to a predatory cash grab... There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations,” she stated.

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    A Widening State Crackdown

    Delaware would join roughly 30 states that have passed kiosk-related legislation since 2023. Indiana and Tennessee have enacted comprehensive bans.

    The regulatory pressure has reshaped the sector. Bitcoin Depot, once the largest US operator, filed for Chapter 11 bankruptcy in May and pulled its network offline, citing state bans and mounting litigation.

    Missouri, meanwhile, has sued operator CoinFlip for alleged facilitation of fraud. The crackdown extends beyond US borders, with Canada proposing a national ban in its 2026 Spring Economic Update.

    In Delaware, under HB 441, existing machines would go dark immediately, with full physical removal required within 90 days. Operators collecting fees from illegal transactions would face refund obligations or forfeiture to a state fund.

    The bill now heads to the Senate. Whether Delaware becomes the next state to clear a full ban may hinge on the chamber's coming session.

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    Read the Original story Delaware Lawmakers Advance Bill To Ban All Cryptocurrency Kiosks Statewide by Kamina Bashir at beincrypto.com


  • Under the Glass Pinball Speakeasy brings back the old school games

    Under the Glass Pinball Speakeasy brings back the old school games
    Under the Glass Pinball Speakeasy brings back the old school games
    Scroll back up to restore default view.

    Under the Glass Pinball Speakeasy in Red Bank offers a variety of games off the screen.


  • 'SoHo for seniors': Rich retirees who fled to Florida are buying 'med-à-terres' in NYC just to keep seeing their doctors

    An old retired couple holding hands in beach chairs sitting in front of a pool surrounded by palm trees
    Bob Pool / Shutterstock

    For decades, wealthy retirees have headed to Florida for the sunshine, lower taxes and year-round warm weather. But many are discovering that one thing is harder to relocate than an investment portfolio: trusted medical care.

    Now, a growing number of affluent former New Yorkers are buying small second homes back in the city — often called “med-à-terres” — so they can continue seeing the doctors and specialists they’ve relied on for years.

    Must Read

    Melissa Talarico is one of them. After spending 40 years working in the city, the 72-year-old spends much of the year in Miami as she eases into retirement, but she and her 75-year-old husband haven’t fully severed their ties to Manhattan.

    “You leave a place, and you think you’re done there,” she told the Wall Street Journal.“But you’re not.”

    Here’s why some retirees are holding onto a foothold in New York after moving south and what the trend says about the growing value of access to top-tier medical care.

    Keeping their doctors close

    Even after relocating to Florida, Talarico and her husband continued returning to New York for appointments with specialists at institutions such as the Hospital for Special Surgery, Memorial Sloan Kettering Cancer Center, Mount Sinai Hospital and Lenox Hill Hospital. While they often stayed at a vacation home on Long Island during those trips, the three-hour commute into the city eventually became a burden.

    Bill Kowalczuk, Talarico’s real estate broker at Coldwell Banker Warburg, said the decision came down to convenience.

    “Flying up from Florida and then adding a multi-hour drive to get to medical appointments was stressful, especially with frequent or time-sensitive visits,” Kowalczuk told Moneywise.

    Last December, the couple purchased a 900-square foot loft in Jersey City. Nicknamed “SoHo for seniors” by Talarico’s friends, the apartment is just a short train ride from many of their doctors and makes healthcare trips significantly easier.

    The challenge isn’t just finding a new doctor after a move, it’s finding one at all. The Association of American Medical Colleges projects the US could face a shortage of up to 86,000 physicians by 2036.

    The desire to stay connected to doctors isn’t unique to the Talaricos. William Yau, a real estate broker at Coldwell Banker Warburg, said he has seen similar situations among his clients. One client’s mother owns a multifamily home in Queens but now spends most of her time in Connecticut with her daughter and grandchildren.

Employers drop GLP-1 weight loss drug coverage as use surges