IBM stock tanks: CEO Arvind Krishna says AI chip spending took toll

• Munich-based defense technology startup Helsing announced a new funding round on Monday, resulting in a company valuation of $18 billion. • The investment highlights a strategic shift in European defense as drones and autonomous systems transition from niche tools to core components of modern warfare.

• Five European missile manufacturers have signed a letter of intent to establish the Bliksem EXO consortium. • The partnership aims to develop an exoatmospheric interceptor designed to destroy ballistic missiles in space.

• European drone warfare reached a critical inflection point in July 2026 with $49 billion in total commitments, including $40 billion via NATO's new Drone Edge Initiative. • Key investments include Germany funding 50,000 AI-guided FPVs for Ukraine and Helsing raising $1.8 billion, supported by Auterion Skynode S chips that increase drone hit rates from 20% to 90%.

• ASML, Europe's largest company by market capitalization, has raised its 2026 total net sales forecast to between €43 billion and €45 billion. • The Veldhoven-based firm also increased its projected gross margin to between 54% and 56%, up from the previous estimate of 51% to 53%.

• OpenAI has offered the U.S. government a stake valued at $42.6 billion in a significant move toward public-private alignment. • TSMC reported record-breaking revenue driven by the surging demand for AI-specialized semiconductors.

• The European Union has issued a competition ruling that grants SAP customers increased leverage during contract negotiations, particularly regarding maintenance fees. • The decision validates the use of third-party software support as a strategic alternative to SAP's own services, rather than just a cost-saving measure.

• A new class of "entrepreneurial workers" in China is utilizing generative AI for copywriting, design, and e-commerce to survive an economy with collapsing social mobility. • These solo operators focus on frugal survival and rent coverage rather than scaling for IPOs, reflecting a shift toward grassroots economic resilience.

• The United States faces growing competition from China as Chinese open-source AI models begin to spread globally and regain technological ground. • While top American companies currently lead in Large Language Model (LLM) capabilities and revenue, China is aggressively seeding the global AI infrastructure.

• The White House has launched "Gold Eagle," a cybersecurity clearinghouse designed to help federal agencies, critical infrastructure operators, and AI developers patch security flaws identified by advanced AI models. • The initiative will utilize leading frontier models, including Mythos, and is the result of several months of collaborative design and conversation between the administration and industry leaders.

• The Trump administration has launched a new industry clearinghouse designed to strengthen coordination on artificial intelligence cybersecurity. • The initiative focuses on improving the detection and patching of network vulnerabilities, with a specific emphasis on securing open-source software.

• IBM warned that massive investments in AI infrastructure are squeezing corporate software budgets, leading to forecasts of weaker revenue growth. • The company reported specific weakness in its mainframe business, which provides critical transaction processing for the banking and airline industries.