CORE(CORE) Regular Invest

After Alphabet's announcement of an $84.75 billion equity financing round, market focus for AI investment is shifting from pure growth narratives to capital efficiency and payback periods. The core argument is that AI is being re-priced from a software-like growth story into a heavy-asset infrastructure cycle, requiring massive capital expenditure (CapEx) on chips, data centers, and power grids. While Alphabet's financing itself is not a distress signal—part of it is for administrative purposes like tax obligations on stock compensation—it highlights the enormous capital demands of AI infrastructure. This demand extends beyond tech giants to pure-play AI model companies (like OpenAI, Anthropic), data center REITs, and utilities. Major tech firms are projected to spend heavily on AI data centers in 2026, signaling a broad-based capital cycle the market must absorb. Consequently, valuation logic is changing. Investors are moving away from questions about who has the strongest AI narrative and are now prioritizing clear visibility into orders, stable cash flows, and the cost of capital. This has led to recent pressure on high-multiple AI software and semiconductor stocks, while "picks-and-shovels" hardware, data center, and power assets with firmer near-term demand may see relative support. The key going forward will be monitoring whether rising CapEx guidance across companies is matched by a timely monetization of AI investments into revenue and cash flow. The market's tolerance for high spending depends on demonstrable returns. While the long-term AI thesis remains intact, the valuation framework has fundamentally shifted to emphasize capital discipline and payback speed.

The U.S. Securities and Exchange Commission (SEC) has voted to propose repealing Rule 611 of Regulation NMS, the "order protection rule" that has been a cornerstone of U.S. equity market structure since 2005. This move, while a story of traditional finance, represents a major potential policy shift for tokenized U.S. stocks, removing a key structural barrier. Rule 611 mandates that trading centers cannot execute trades at prices inferior to protected quotes displayed on other exchanges. This framework is fundamentally incompatible with Automated Market Makers (AMMs) used in decentralized finance (DeFi). AMMs execute trades along bonding curves with price slippage and cannot comply with the rule's real-time, price-by-price requirements, meaning any tokenized stock liquidity pool would be in violation. The proposed repeal would replace the prescriptive rule with a principles-based "best execution" obligation on broker-dealers. This allows brokers to route orders to on-chain liquidity pools like AMMs, fulfilling their duty through periodic review rather than per-trade enforcement. The proposal is backed by significant historical context. SEC Chair Atkins, who voted against Reg NMS in 2005 alongside Commissioner Glassman, is now acting on his decades-old dissent. They argued Rule 611 would distort markets and push liquidity into dark pools rather than improve transparency—a prediction validated by current SEC data showing nearly half of trading now occurs off-exchange. The SEC's proposal explicitly connects to the crypto industry, citing academic work that Rule 611 has prevented innovation like AMMs and atomic settlement in stock markets. The process has been deliberate, following public roundtables and comments. While tokenized securities face other regulatory hurdles, this repeal is seen as a critical first step in clearing the path for next-generation market structure innovation.

The core thesis for 2026 investment is a shift from traditional growth-inflation analysis towards a geopolitical framework of strategic blocs, supply chain reconfiguration, and capital expenditure (capex) direction. The US is moving from a global guarantor role towards a more bounded "camp system," reshaping trade, security, and technology flows. Key investment themes emerge from this realignment: production-capable US-aligned economies (e.g., Japan, South Korea), regional security focusing on Latin America, and the hard constraint of energy/grid capacity enabling reshoring. Europe's strength lies not in macro growth but in its high-quality "pick-and-shovel" industrial, electrical, and automation exporters serving the global capex cycle. AI remains the central US-China strategic battleground, driving massive investment in compute, power, and manufacturing stacks, with robotics gaining prominence. The investment implication is a rotation away from crowded US mega-cap tech momentum toward global beneficiaries of this restructuring: electrification equipment, industrial automation, energy storage, grid infrastructure, and select non-US markets. 2026 will be defined by investment intensity driven by geopolitical repositioning, not near-term commercial maturity.

zkSync founder Alex Gluchowski announced significant layoffs at Matter Labs, the company behind the Ethereum scaling solution, on June 17. This marks the second round of cuts in two years. The core strategic shift is the company's full focus on Prividium, a "permissioned" privacy blockchain designed specifically for regulated financial institutions like Deutsche Bank and UBS. This move represents a stark pivot from zkSync's original ethos of a public, permissionless network. Gluchowski, a self-described "freedom maximalist," is now steering the project toward a compliant, enterprise-focused model. The community reaction is divided, with many sharply questioning the use of the $458 million in total raised funds, given the ongoing layoffs. The native $ZK token has suffered heavily, trading around $0.019, down approximately 93% from its all-time high. Its value-capture mechanism appears disconnected from Matter Labs' new B2B licensing direction. This strategic turnaround is seen by some as a survival tactic in the highly competitive L2 landscape, where zkSync has faced significant user decline post its 2024 airdrop. The company is now betting on a niche, potentially more profitable market, but at the cost of alienating early supporters who believed in its decentralized promises.

Nobel laureate and AlphaFold lead John Jumper has left Google DeepMind after nearly nine years to join AI company Anthropic. Jumper, who co-won the 2024 Nobel Prize in Chemistry for his work on the protein-structure-predicting AI, led the AlphaFold project from its early stages, revolutionizing structural biology by predicting hundreds of millions of protein structures. His departure follows closely that of Transformer co-inventor Noam Shazeer, who recently left Google for OpenAI, marking a significant talent drain for the tech giant. Analysts suggest top AI researchers are seeking environments where individual impact can more directly shape a company's trajectory. Anthropic's hiring of Jumper signals a major push into AI for life sciences. The company recently acquired biotech firm Coefficient Bio and is building wet labs, aiming to drastically accelerate drug discovery and biomedical research. This move aligns with a broader trend, as OpenAI and Google DeepMind (via Isomorphic Labs) are also heavily investing in AI-driven biology and healthcare. The stage is now set for intensified competition among AI leaders to redefine life sciences through artificial intelligence.