People underestimate xAI at their own peril. They’re the real wild card in the AI race, and the bigger picture reveals an actual strategy to not just leapfrog the competition but to become the only winner in AI. It’s eerily similar to the playbook John D. Rockefeller ran with Standard Oil. If you look at the funding picture today OpenAI just raised $122B (that they’re lighting on fire) and Anthropic has raised ~$72B in its entire lifetime. xAI in comparison has raised meaningfully less than either. But xAI somehow already has the most compute online right now, and the capital structure is about to flip that’s going to turn them into one of the largest free cash flow machines in history. SpaceX filed its S-1 last week targeting a ~$75B raise at a 1.72 trillion valuation and although most of that is going to go to Starlink and Starship, the detail many are missing is that xAI now sits inside a public-company balance sheet with access to huge institutional debt markets that pure AI labs don’t have. OpenAI and Anthropic have to keep selling equity to fund compute while xAI can issue investment-grade paper against Starlink’s $4.4B in operating income, giving it a dramatically lower effective cost of capital which is critical in this gold rush to expand compute infrastructure and capture market share. If you then look closer at the Colossus deal with Anthropic xAI gets ~$40B to rent out their old infrastructure which allows them to monetize a depreciating asset at a higher rate than they were getting from internal use, as well as control a competitor’s inference economics, and recycles the cash into Colossus 2. This is a Rockefeller move no doubt. What many don’t understand is that Standard Oil didn’t just refine oil. It owned the rail rebates which in turn made their competitors pay them every time they shipped a barrel. Rockefeller’s rivals literally funded the monopoly’s expansion and similar to today with a severely supply constrained compute market anyone with cheap power right now can pull such a move (Colossus taping into the Natural Gas pipeline was another genius move for many other reasons). This matters a lot more than people think right now because we are still in the blitzkrieg part of the AI build out but as we shift from training to inference, compute capacity will directly equal revenue capacity. The pre-training benchmark game the AI labs are playing right now is hitting marginal returns. The customer-serving game is just starting, and whoever has the most power online and the best economics wins it. When you factor in the SpaceX IPO, public debt access, $40B of incoming Anthropic revenue (and many more deals to be announced soon I believe) as well as the first operational gigawatt cluster with Colossus 2 we are going to see a sea change in the industry. Power, uptime, and compute access will be all that matters. If I am right I expect consolidation with the big AI labs and AI services. The recent mergers & buyouts with SpaceX are just the start.

5) LIQUID: Liquid TVL declined 16% YoY, contrasting sharply with competitors: - Maple: 700% growth to $2.6B - Morpho: 61% growth to $6.6B ether.fi lacks differentiated yield sources. Competitors succeeded through private credit (Maple) and Coinbase distribution (Morpho). The Aave/OWN/Safe mortgage partnership could change this - we are optimistic about ether.fi pursuing more private credit opportunities.

HyperCore will support outcome trading (HIP-4). Outcomes are fully collateralized contracts that settle within a fixed range. They are a general-purpose primitive that are useful for applications such as prediction markets and bounded options-like instruments. There has been extensive user demand in both of these areas, and builders will likely think of novel applications as well. Outcomes bring non-linearity, dated contracts, and an alternative form of derivative trading that does not involve leverage or liquidations. The outcome primitive expands the expressivity of HyperCore, while composing with other primitives such as portfolio margin and the HyperEVM. Outcomes are a work in progress and currently only being tested on testnet. Canonical markets based on objective settlement sources will be deployed once technical development is complete. Canonical markets will be denominated in USDH. Pending user feedback, the infrastructure will be extended to permissionless deployment.

Hyperliquid has quietly achieved an important milestone of becoming the most liquid venue for crypto price discovery in the world. See below for side by side comparison of BTC perps on Binance (left) and Hyperliquid (right). With HIP-3 teams leading the way, Hyperliquid has also grown to become the most liquid venue for perps on tradfi assets. Thank you to everyone's hard work as we upgrade the financial system and house all of finance.

USDC is now linked between HyperCore and HyperEVM. This is a major milestone in allowing secure, natively minted cross chain USDC deposits directly to HyperCore. In the final state, the Arbitrum bridge will be deprecated and all USDC will be natively minted. There are many details still to build out, and the priority is to roll out features in a safe way while giving users and builders ample time to migrate. Thank you to the Circle team’s hard work on building this integration. For users and builders, there is no immediate breaking change. Users can deposit and withdraw from both the Arbitrum bridge and HyperEVM. HyperCore now supports one-click deposits from CCTP-enabled chains, abstracting away the minting on HyperEVM. The CCTP route from Arbitrum has been deployed by Circle, with others to follow.

a few issues with aggregators that make them structurally inferior to an order book: 1) DFlow doesn't CREATE prices, it READS them. DFlow quotes are derivative of venue prices, not a source of price formation. There is no two-way market making vs continuous two-way quotes from competing market makers creating genuine price discovery 2) Multi-venue atomic swaps can fail if ANY leg fails vs Single atomic match, simple execution guarantees

future of finance

The Blockchain to House all Finance™️ @HyperliquidX Meet real world payments 💳 HYPE and beHYPE are now live on Cash! • Deposit & withdraw from HyperEVM • Earn rewards with beHYPE • Spend with 3% cashback • Never Sell with Borrow Mode Hyperliquid.

ok time to figure out crypto fr

BREAKING: $HYPE CEO @chameleon_jeff will be on TBPN tomorrow at 12:30p PT