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The Profit Warning and Fundraising Plan WH Smith has issued a profit warning after shopper numbers at its stores in US airports fell as a result of the war in the Middle East. The retailer, which operates 1,200 outlets globally in airports, railway stations and hospitals, also announced plans to raise about £100m to strengthen its balance sheet, pay down debt, invest in technology and shut down unprofitable stores after “a downturn in trading conditions”. Impact of the Middle East Conflict WH Smith, which has already seen a fall in revenues in its UK airport operation due to the conflict in the Middle East, said that North America has now also been affected, with revenues at its airport operations falling 2% year on year in the seven weeks to 6 June. In the UK, WH Smith said revenues at its airport stores were flat year on year in the seven weeks to 6 June. Across its entire business revenues rose 1% year on year across the period. Financial Implications As a result, the company said that it expects pre-tax profits of between £75m and £90m this year, down from previous guidance of between £90m and £105m. The company will also book a £150m non-cash impairment charge this year after a review of its business and plans to shut some stores in Europe and in resorts in North America. The Fundraising and Future Plans It is aiming to raise £100m by issuing approximately 26m new shares in the company. The WH Smith executive chair, Leo Quinn, said the company is embarking on a “self-help” programme to strengthen the group’s operations. “We are now taking action to sell, exit or renegotiate loss-making or low-return situations and, where appropriate, we are replacing directly run operations with franchises in sub-scale markets,” he said.

Justin Ernest, a former Playground Global partner, has funneled almost $500 million into ten late‑stage AI and deep‑tech startups through single‑deal special purpose vehicles, sidestepping the 12‑to‑18‑month process of launching a traditional venture fund.Ernest’s SPV‑Driven Model Bypasses Traditional VC FundraisingInstead of forming a formal fund, Ernest created Sabertooth Capital, which raises capital from roughly 30 family offices and smaller institutional investors. Each allocation is packaged into its own SPV, allowing investors to buy shares in a vehicle that holds the target company’s stock. This structure lets Ernest close deals in weeks rather than months.Nearly $500 Million Deployed Across Ten Late‑Stage AI StartupsIn the past 12 months Sabertooth Capital has allocated:$10 million–$275 million per check, securing sizable equity stakes.Investments in Anthropic, Anduril, Base Power, Databricks, PsiQuantum, SpaceX and four other high‑growth firms.One notable exit: Groq’s acquisition by Nvidia for $20 billion, delivering a strong return for Sabertooth’s LPs.Family Offices Gain Direct Access to High‑Growth AI UnicornsThe SPV approach solves a market gap: family offices want exposure to fast‑moving AI companies but lack the relationships to sit on cap tables. By vetting each deal with the target’s CFO or founder, Ernest provides credibility and peace of mind, especially as companies like Anthropic and Anduril tighten controls on unauthorized SPVs.Future Outlook: From SPVs to a Full‑Scale Venture FundErnest says the ultimate goal is to raise a traditional fund, using the performance of his one‑off SPVs as proof of concept. Upcoming catalysts—SpaceX’s IPO and Anthropic’s anticipated public listing—could generate additional windfalls, strengthening his track record and attracting larger commitments when he eventually launches a multi‑company fund.

The Star-Studded Lineup for the World Cup Opening Ceremonies Shakira and Burna Boy will kick off the World Cup with a performance in Mexico City, singing 'Dai Dai', the official song for the tournament, ahead of the opening game between Mexico and South Africa. The Lineup for Each Host Nation's Opening Ceremony FIFA has planned unique opening ceremonies for each host nation. Here's a breakdown of the performers: Mexico: Shakira, Burna Boy, Alejandro Fernandez, Belinda, Danny Ocean, J Balvin, Lila Downs, Los Angeles Azules, Mana, and Tyla. Canada: Alanis Morissette and Michael Buble, performing in Toronto on June 12 ahead of Canada vs Bosnia and Herzegovina. US: Katy Perry, LISA, Rema, Anitta, and Future, performing in Los Angeles before the US faces Paraguay. The Creative Force Behind the Ceremonies The trio of shows is being created by Italian producer Marco Balich, who was behind the spectacular opening ceremony for this year's Milan Cortina Winter Olympics. Each show will be held about 90 minutes before kickoff. A Fundraising Effort Through Music The song 'Dai Dai' aims to raise $100m in support of the FIFA Global Citizen Education Fund. Other Notable Performances Shakira is also set to perform at the World Cup final's half-time show, alongside Madonna and BTS. This event promises to be a Super Bowl-style extravaganza.

The Lead: OpenAI’s IPO Uncertainty Amid a Flood of AI ListingsAs the market prepares for what could be a record‑setting wave of AI‑focused IPOs, OpenAI remains on the sidelines, wrestling with weak revenue performance, internal leadership clashes, and a valuation that may no longer match investor appetite.Rival AI Firms Accelerate Toward Public MarketsWhile OpenAI hesitates, competitors are charging ahead. Elon Musk's SpaceX, owner of xAI, is slated to float this month. Anthropic confidentially filed for an IPO on Monday, a move described by the New York Times as a “once in a generation” moment for Wall Street. Meanwhile, Alphabet is raising $80 bn (£60 bn) to expand AI infrastructure, the largest equity fundraising ever recorded.Financial Snapshot: OpenAI’s Revenue, Margins, and ValuationRevenue Q1 2026: $5.7 bn (reported by The Information)Adjusted margin: –122% (loss of $1.22 for every dollar spent)Last private‑round valuation: $852 bnStargate investment: $500 bn announced for U.S. AI infrastructure (UK version shelved)These figures highlight a business that is still burning cash faster than it can generate revenue, raising doubts about its readiness for a public offering.Implications for the AI Economy and Capital MarketsThe clustering of mega‑IPOs could strain the limited pool of capital available to fund large‑scale AI ventures. Index providers are already revising rules to accommodate new entrants like SpaceX and potentially OpenAI, exposing retail investors to heightened risk. Internal tensions—most notably reported clashes between CFO Sarah Friar and CEO Sam Altman over timing—add another layer of uncertainty.Outlook: Will OpenAI’s Timing Define Its Future?Analysts such as Russ Mould (AJ Bell) and Adrian Cox (Deutsche Bank) warn that without clear revenue trajectories and cash‑flow visibility, valuation estimates remain speculative. If OpenAI proceeds now, strong retail demand could buoy the price; a delayed or failed IPO might signal broader cracks in the AI hype cycle. Conversely, a successful listing could cement OpenAI’s position as a mature, public‑market AI leader.

The Final Countdown for Startup Battlefield 200 Applications Founders, your window to enter Startup Battlefield 200 is rapidly closing. Applications officially close in just three short days on June 8, 11:59 p.m. PT. This is a final call to secure your shot at competing on the Disrupt Stage at TechCrunch Disrupt 2026 this October at San Francisco’s Moscone West. The Opportunity of a Lifetime for Early-Stage Startups Startup Battlefield 200 is where ambitious early-stage startups go from unknown to impossible to ignore. Selected founders will take the spotlight at Disrupt, pitching live in front of top investors, influential media, and the global startup ecosystem. One startup will take home $100,000 in equity-free funding, but every selected company gains exposure that can accelerate growth, attract customers, and open doors to future fundraising opportunities. A Track Record of Success Over the years, Startup Battlefield alumni have collectively raised more than $32 billion and achieved more than 250 exits. Alumni have gone on to be acquired by companies such as Microsoft, Google, Salesforce, Uber, and Amazon. The competition has also helped launch companies such as Dropbox, Discord, Mint, Fitbit, and Trello. What You Need to Know About the Application Process TechCrunch is looking for bold early-stage startups with a working MVP and a vision capable of disrupting an industry. Bootstrapped, pre-seed, and seed-stage startups are encouraged to apply. Select Series A startups in capital-intensive sectors may also qualify. Every application is reviewed by the TechCrunch team. The Last Chance to Apply With only three days remaining, this is your chance to put your startup in front of investors, media, customers, and future partners all in one place. Apply or nominate a startup before the deadline and earn your place among the next generation of Startup Battlefield competitors.

The Rise of 'Together Tech' and Physical Computing While the AI fundraising machine continues to break its own records, a distinct counter-movement is gaining momentum. Founders are building in the opposite direction, prioritizing physical connection over digital abstraction. The latest trend involves startups like Board, founded by Brynn Putnam of Mirror fame, which focuses on bringing people together through in-person games and social experiences. Simultaneously, the Cyberdeck community is exploding, with creators building whimsical DIY computers that literally encourage users to 'touch grass.' Unlike the 'AI-free browser crowd,' this shift feels like a genuine market response rather than just a backlash against Silicon Valley hype. The Financial Divide: AI Giants vs. Human-Centric Startups Despite the rise of 'together tech,' the financial landscape remains heavily concentrated in artificial intelligence. The episode highlights Anthropic's confidential IPO filing and Alphabet's massive $80 billion AI raise. This indicates that while the startup ecosystem is diversifying, the bulk of capital is still flowing back to the major players dominating the AI landscape. The 'together tech' wave represents a niche but growing sector of investment, standing in contrast to the monolithic flow of funds toward generative AI infrastructure. Why Humans Are Craving Tangibility This shift represents more than just a reaction to tech fatigue; it signals a deeper psychological need for connection and physical touch. Whether through social gaming or building custom hardware, the market is responding to experiences that feel 'a little more human.' This trend suggests that consumers are seeking a balance between the efficiency of AI and the warmth of physical interaction. The Hybrid Future: Integrating AI with Physical Reality The future of the tech industry likely lies in a hybrid model. While AI will continue to dominate backend infrastructure and large-scale funding, the consumer-facing winners of 2026 will likely be those that bridge the gap between digital intelligence and physical interaction. The 'together tech' wave may not replace AI, but it will likely force AI companies to integrate more human-centric, physical elements into their ecosystems.

Mira Murati’s First Major Media Appearance in 18 monthsIn a Bloomberg interview in San Francisco, Mira Murati stepped back onto the public stage after a prolonged period of quiet. The former OpenAI CTO, now leading Thinking Machines Lab, used the conversation to signal the company’s re‑emergence and to remind the market that it remains a contender in the AI talent and funding race.Introducing “Interaction Models”: Real‑Time Multimodal AIMurati previewed the startup’s flagship concept called “interaction models”. Unlike the turn‑based, prompt‑and‑response paradigm that dominates most AI products, these models process continuous streams of audio, text, and video in 200‑millisecond intervals, aiming to capture the nuances of human conversation—interruptions, mid‑thought corrections, and pauses.Product in early testing: Tinker, an API for fine‑tuning open‑source models.Development timeline: ~1.5 years of background work (fundraising, hiring, product build).Talent compensation trends referenced: nine‑figure packages becoming standard in the AI talent war.Governance Concerns Amid AI Talent WarsMurati shifted the discussion toward a broader industry issue: the concentration of consequential decisions in a handful of leaders. She warned that “good people make bad calls” and that the sector lacks robust structural checks, echoing concerns about the 2023 OpenAI board upheaval where she served as interim CEO for a five‑day “blip.”When pressed about recent departures of high‑profile researchers from Thinking Machines, Murati framed turnover as a natural compression of years of organizational volatility into months, noting that compensation alone does not explain the movement.What’s Next for Thinking Machines and the Wider AI LandscapeMurati declined to set a launch date for the interaction models, describing them as a “first step.” She emphasized that the current period will shape whether AI leads to dystopia or utopia, and that premature relinquishment of human oversight could steer outcomes “not better.”Looking ahead, Murati’s measured tone suggests Thinking Machines will continue to iterate on real‑time multimodal interfaces while advocating for stronger governance frameworks across the industry.

The Rise of AI Compliance As enterprises troubleshoot their AI systems, governance has emerged as a key challenge. Some are taking a dual approach: one model to handle incoming queries, and another to keep the first one from getting into trouble. ZeroDrift's Innovative Solution ZeroDrift, a new AI compliance service, has raised $10 million in a seed funding round that saw investments from a16z Speedrun, Reign Ventures, Pitchdrive, and U&I; Ventures, among others. The company deals entirely with the second part of the system, sitting between AI models and end users to flag and replace any messages that might present a compliance problem. The Technical Advantage ZeroDrift's system is triggered by conventional programs that deterministically apply known compliance standards like SOC 2 or GDPR, and the LLM only comes into play once a message has been flagged, rewriting a compliant version of the same message. The Market Opportunity The most obvious use case is for AI chatbots, which are already deployed in front of consumers where there can be serious consequences for rogue answers. But Kumesh Aroomoogan sees a much larger total addressable market, potentially spanning AI-generated messages that are generated only within automated systems that humans will never see. The Funding and Future Outlook The fundraising was rapid, with Andreessen Horowitz helping structure the seed round. "We closed within three weeks, and we will be oversubscribed by 3x on the amount," Aroomoogan says. This indicates a strong demand for AI compliance solutions like ZeroDrift's.

Alphabet, the parent company of Google, has announced plans to raise up to $80 billion (£59 billion) in equity to finance its aggressive artificial intelligence infrastructure expansion. This monumental fundraising effort underscores the sheer scale of capital required to compete in the modern AI landscape and sets the stage for a transformative year in tech finance.Alphabet's Mega-Equity Raise and the Berkshire Hathaway BetThe fundraising initiative includes a notable $10 billion share sale to Berkshire Hathaway, the investment conglomerate long associated with the retired investment guru Warren Buffett. Historically, Berkshire has stepped in to provide crucial liquidity during pivotal market moments, such as the famous $5 billion investment in Goldman Sachs during the 2008 financial crisis. Alphabet stated the fresh capital will directly support its world-class AI compute infrastructure to meet unprecedented customer demand for its Gemini system and enterprise cloud services.Decoding the $80 Billion Capital DeploymentWhile the headline figure is staggering, the deployment strategy reveals a nuanced financial approach. The $80 billion package is structured to address both operational expansion and internal financial mechanics:$40 billion is explicitly dedicated to scaling AI infrastructure and global compute capacity.$40 billion is allocated to cover an administrative change regarding tax obligations for the vesting of employee equity awards.The raise features an initial $30 billion paired with the $10 billion from Berkshire, alongside a flexible $40 billion drip-feed mechanism to be used gradually over time.Although $80 billion represents one of the largest equity fundraisings globally, it amounts to less than 2% of Alphabet's massive $4.6 trillion market capitalization. This year alone, the company's total capital expenditure is expected to reach between $180 billion and $190 billion.The Shift from Capital-Light Tech to Infrastructure HeavyweightsThis move serves as a stark reminder to Wall Street that the era of tech giants operating as capital-light free cash flow machines is fading. Market strategists at Deutsche Bank note that funding the AI capital expenditure boom is becoming a central, pressing topic for global markets. However, analysts at Hargreaves Lansdown emphasize that Alphabet is spending from a position of strength rather than distress. With Google Cloud growth accelerating, search proving resilient, and AI compute demand vastly outstripping current supply, Alphabet's investment is backed by tangible business momentum.The Looming AI IPO Wave and Market ExpectationsAlphabet's aggressive capital raise precedes a highly anticipated wave of AI-driven public offerings. Anthropic, the creator of the Claude chatbot and currently the world's most valuable startup at a $965 billion valuation, has confidentially filed for an initial public offering. Furthermore, industry heavyweights like OpenAI and Elon Musk's SpaceX (which includes the xAI startup) are also preparing to go public. As these industry titans enter the public markets, investors will increasingly demand concrete proof that massive data center buildouts will translate into durable, long-term revenue growth.