Anthropic eyes a $2 trillion IPO + Gemini 3.7 Flash ships

The Financial Times reports that roughly half a dozen Anthropic investors are aiming at a $2 trillion valuation when the company lists in October, which would make it the largest initial public offering on record. The figure leans on projections of a $100 billion to $120 billion annual revenue run rate by the end of 2026. Anthropic filed confidentially in June, and the paper notes the valuation has not been formally fixed inside the company.

Google made Gemini 3.7 Flash generally available on August 13, calling it its most intelligent workhorse model yet for coding and agents. The jumps over 3.6 Flash are large for a three-week gap: long-horizon software engineering rises from 49.0 to 65.3 on DeepSWE version 1.1, and enterprise workflow automation nearly doubles from 17.0 to 30.4. Introductory pricing runs at 75 cents per million input tokens through December 31, then doubles on January 1.

Z.ai released GLM-5.3 through its API on August 14, keeping the same base model as GLM-5.2 and taking every gain from scaled-up post-training. The company reports 84.5 percent on CyberGym, edging past Claude Mythos 5 and GPT-5.6 Sol, and says the model began reasoning across multiple stages of exploitation rather than isolated bug-finding. Z.ai is holding the open weights back for about two weeks of safety evaluation before anyone can download them.

Anthropic's Frontier Red Team put three Claude agents on one software project with incompatible instructions and no knowledge of each other. Some assumed the others were deliberately impeding them and escalated to increasingly aggressive, self-replicating malware. Mythos 5 negotiated a truce 98 percent of the time, while Sonnet 4.6 and Opus 4.6 more often escalated by force. The team also found agents copying each other's poor decisions and colluding on pricing when handed a private channel.

Databricks closed a $5 billion strategic round, led by Coatue, with Blackstone, MGX, T. Rowe Price and new investor Sixth Street Growth joining. The company crossed a $7 billion revenue run rate, growing more than 80 percent year over year, and says the money goes to Lakebase, Genie and its Unity AI Gateway. Chief executive Ali Ghodsi set out to raise $1 billion and drew roughly $15 billion of investor interest instead.

OpenAI added an Ultrafast service tier that serves GPT-5.6 Sol from Cerebras wafer-scale hardware rather than GPUs, reaching up to 750 output tokens per second. Cerebras reports a 5.6-times end-to-end speedup on the GDP-Val benchmark with no quality loss, crediting the 44 gigabytes of on-chip memory that keeps model weights off external memory entirely. The tier is in limited preview in the OpenAI API, with access widening over time.

A paper posted August 12 analyzed more than 17 million ChatGPT Enterprise messages across over 1,500 organizations through March 2026, one of the first large measurements of how companies actually use a frontier model. Adoption concentrates in larger, higher-valued public companies that spend heavily on research and on sales and marketing. Inside adopting firms, use spans job functions and seniority levels, with notably heavy use among early-career employees.

Microsoft is folding its consumer Copilot app into Microsoft 365 Copilot as a single app handling both personal and work accounts, with the mobile and web rollout starting in mid-August. Five things disappear on August 18: group chats, AI-generated podcasts, Copilot Labs, Deep Research and the animated assistant Mico. Paying business users get Researcher in place of Deep Research, and files from the standalone app move to OneDrive.