• Markets: Like a drunk Roomba, stocks wavered yesterday, beginning the day up before eventually settling just a hair below where they started as investors parsed more AI jitters and rising bond yields. You know who didn’t mind? CarMax, which spiked after it showed evidence that its turnaround plan is working.

HOLD YOUR HORSES

Niv Bavarsky

Just a day before Oura was set to go public, the smart ring maker said it was going to hold off. Oura was eyeing a whopping $14.1 billion valuation, well above the $11 billion valuation it snagged after its funding round last year.

And, up until a few weeks ago, it might have achieved that valuation. The company generated $1.4 billion in revenue and $59 million in net income from June 2025 to June 2026, according to a regulatory filing, positioning it to hit the Nasdaq running. The IPO market was also red hot, with companies raising $127 billion so far in 2026—a 400% jump from last year, according to the Wall Street Journal.

So what happened?

The Iran war, to start. As oil prices jumped, the Federal Reserve signaled more interest rate hikes. That, combined with just about every AI evangelist warning of the impending apocalypse, has made investors nervous. In the last few days, Holtec Nuclear and Bamboo Insurance put their IPOs on pause, claiming bad timing.

Oura said that, despite strong demand for its stock, it would hit pause on going public “due to uncertainty in the IPO market.”

Meanwhile, Anthropic is full steam ahead

Anthropic is moving forward with its IPO, confident it can hit the $2 trillion valuation it reportedly expects next month. But there are other concerns, according to the company’s prospectus that Reuters got a hold of this week:

• Anthropic said that AI could produce “catastrophic or existential risks to humanity.” The company used 80 of the 261 pages in the document to explain potential risks, and just 48 on business.
• The AI giant also reported a net loss of $42 billion last year, while revenue grew to $4.6 billion, meaning profits have not caught up to the buzz. Anthropic also plans to supercharge spending, projecting $518 billion over the next few years.

Bottom line: An IPO this big will have ripple effects, as the world watches for any missteps in the “circular economy” that AI companies have constructed. Oura also has a lot riding on AI: It relies on OpenAI, Anthropic, and Google for models, in addition to third-party data centers.—MM

      

Sponsored By Avalara

Avalara Aviator brings AI into the workflows where tax and compliance work actually happens.

Purpose-built agents help monitor activity, surface recommendations, and execute work within your policies, permissions, and approval boundaries.

Rather than simply answering questions, Aviator helps move work forward across systems, data, and teams. The result is faster execution, fewer manual handoffs, and audit-ready outcomes you can trust.

With complete visibility and human oversight at every step, Aviator helps organizations simplify compliance, reduce risk, and focus more on directing outcomes than managing tasks.

World

Tour de headlines

Morning Brew Inc.

🦺 Report: OpenAI ignored employees’ warnings about safety. According to the New York Times, two employees warned executives that new models were not being properly monitored in tests, but were told that the tests needed to move forward to meet deadlines. Months later, OpenAI bots went rogue, breaking out of their testing environments to hack the startup Hugging Face. The ignored warning was reportedly part of a pattern of the company not prioritizing security, per the New York Times. In a statement, OpenAI told the Times that it’s committed to safety and took action when independent researchers flagged security flaws. On Monday, the company scrapped the release of its latest AI model over safety concerns.

🏛️ Jack Smith testified in fiery Senate hearing. Former special counsel Jack Smith, who oversaw criminal investigations into President Trump’s role in the Jan. 6 attack and his handling of classified government information, defended the investigations in a combative hearing before the GOP-led Senate Judiciary Committee yesterday. Republicans accused him of abusing his authority, but Smith stood by the probes, saying they “developed proof beyond a reasonable doubt that President Trump engaged in serious crimes against our nation.” In the hearing’s most viral moment, Sen. Eric Schmitt (R-MO) appeared to confuse the NBA’s Atlanta Hawks with the NCAA’s Iowa Hawkeyes in an attempt to accuse Smith of colluding with prosecutors in Atlanta.

🍎 Apple CEO John Ternus reportedly plans big changes. The iPhone maker may be terning over a new leaf. John Ternus, who assumed the head honcho mantle from Tim Cook earlier this month, wants to rethink a lot of things, Bloomberg reported. Per the outlet, Ternus is looking into…*deep breath* relying less on traditional fall and spring release schedules; axing middle-management positions; launching products quicker; experimenting more; cutting costs; and finding more sources of revenue. The goal is to make the tech giant be nimble and focus more on engineering, Bloomberg reported. Apple has a big 2027 planned, with the reported launches of camera-equipped AirPods, smartglasses, and the 20th anniversary iPhone.—AE

Chew and chat

Kevin Dietsch/Getty Images

It was a rare tech industry lunch that didn’t revolve around discussing keto. President Trump assembled Silicon Valley leaders at the White House for lunch yesterday to talk about AI, as anxieties about the tech’s potential risks hit a fever pitch following a string of incidents of models going on rogue hacking missions.

Afterwards, the president said that he and the execs had signed “a morally binding” agreement, which he called “a form of protection” and likened to “a constitution.”

Who was at the table? Trump sat next to Elon Musk and Nvidia CEO Jensen Huang at the gathering that included CEOs of Anthropic, Palantir, Meta, Alphabet, Microsoft, as well as OpenAI president Greg Brockman and others. Vice President Vance and Treasury Secretary Scott Bessent also attended.

Pass the salt regulations?

Trump, who has opposed new AI regulations, said the lunchmates agreed on the need for “tremendous self-regulation” of AI. However, the issue likely remains unsettled:

• Tech leaders, including OpenAI’s Sam Altman and Anthropic’s Dario Amodei, previously called for a slowdown in AI development to manage risks.
• Trump and some industry heavyweights, like Nvidia boss Huang, oppose this view, saying fears of existential risks are overblown.

Trump said he’ll consider creating a 10-person committee to oversee AI development.

Earlier in the day…Trump unveiled America.gov, an AI chatbot that’s meant to serve as a one-stop shop for information about government services that is powered by Alphabet’s Gemini and xAI’s Grok.—SK

      

Sponsored By DICK'S Sporting Goods

Unlock $350 in benefits. We’re talking perks on perks (on perks) with ScoreCard+ membership: Get a $25 reward when you sign up, free shipping, and so much more. Plus, join ScoreCard+ between Sept. 1 and Oct. 31 and get five $20 coupons for full-priced clothing from CALIA, VRST, DSG, Alpine Design, and Walter Hagen. Don't miss out—sign up today. Terms apply.

THEY STILL GOT PAYPHONES

Andrew Benge/Getty Images

“Kids are on their phones too much these days” sounds like something your uncle who got his CDs from Columbia House in the 1990s would say. But it’s actually the stance of Phoebe Bridgers, a 32-year-old star with a young fan base. For her new tour, which began last month, she’s banning smartphones.

There are two main reasons that Bridgers and other artists want attendees to metaphorically touch grass—one altruistic, and one financial:

• It allows fans to live in the moment, even if the moment is wondering if someone texted you back.
• But it also creates a greater demand to see a show live, since content won’t make it to social media.

How does it work? Fans place their devices—including AirPods, smartwatches and Meta glasses—into a bag that locks magnetically and can only be opened in designated areas or after the show. Fans then get a physical ticket and, since many venues are cashless, must pay for concessions via physical card.

Pushback: Critics say the policy can be ableist (fans can’t monitor health issues) and elitist (fans that can’t afford tickets can’t see anything from shows).

Also performing: Bob Dylan, Alicia Keys, and Jack White are among the musicians who have also recently banned phones at their concerts.—DL

      

Reader Poll

Sam’s stock of the week

This cruise company is blowing it out of the water

Horacio Villalobos/Getty Images

On Wednesdays, the Brew’s Sam Klebanov highlights a fascinating stock, commodity, or other asset that’s worth your attention.

Travelers’ unwavering commitment to post-buffet line dancing at sea is helping keep cruise companies afloat amid rising fuel costs. Shares of Carnival soared more than 13% yesterday after it reported strong earnings:

• Its revenue climbed 3.5% to a record $8.43 billion during the peak-season Q3, surpassing the $8.39 billion analysts expected.
• Earnings per share stayed put, defying projections that it would dip due to the growing expense of powering an ocean liner.

The company compensated for climbing costs by being more efficient with fuel usage. It’s also charging more for tickets without tempering passengers’ appetite for the high seas. It says bookings for 2027 hit all-time highs despite record prices.

News of the resilient market buoyed fellow cruise stocks Norwegian and Royal Caribbean by more than 3% and 7%, respectively, yesterday.

Economic uncertainty might be a tailwind. Consumer finance experts say cruises’ fixed upfront costs make them appealing to those looking to avoid an unplanned $300 dinner outing.—SK

Sponsored By State Street Investment Management

Planning for your financial future? The right foundation makes all the difference. Help build your portfolio with DIA and get exposure to 30 of the world’s most recognizable companies in a single trade. Discover DIA—the only ETF to track the Dow.

News

What else is brewing

• OpenAI launched Dots, which are always-on AI agents that can perform tasks for users, similar to Meta’s Muse.
• The Trump administration’s ban on $1 billion of Canadian imports, including some alcoholic drinks, went into effect yesterday.
• Six Flags closed its famous X2 roller coaster following a CNN report that linked it to several deaths and injuries.
• US consumer confidence fell to its lowest level since 2014 as Americans contend with inflation and rising fuel prices.
• Cheez-It is releasing a version of its product with seven grams of protein per serving (so a little more than 80 grams when you eat the entire box during Sunday football).

recs

• An interactive that shows what the Earth would look like at any sea level.
• Four ways to avoid getting ripped off, per an expert.
• A fun little game that lets you “destroy” any website.
• A room spray that makes your home smell like a fancy hotel.**

^{*A message from our sponsor. **This is a product recommendation from our writers. When you buy through this link, Morning Brew may earn a commission.}

Play

Word Search: What can we say? This week’s puzzle is so…metal. Play the Word Search here.

Greek trivia

You didn’t need to rush a fraternity or sorority to be familiar with the Greek alphabet. Name the following lowercase Greek letters:

1. δ
2. θ
3. γ
4. ψ
5. ρ

Answer

1. Delta
2. Theta
3. Gamma
4. Psi
5. Rho

Word of the Day

Today’s Word of the Day is: morrow, meaning “morning” (in olden times). Thanks to Meghan from Rochester, NY, for the suggestion. Submit another Word of the Day here.