CNBC 14 days ago

Here’s where rental demand is heading and what it means for future home sales

Rising U.S. rent prices are prompting more tenants to move to more affordable markets, according to a recent Zillow report. Cities such as Buffalo, New York; Chicago; and Houston are experiencing the highest increase in out-of-town rental searches on Zillow, followed by New Orleans and Dallas. Conversely, established in-migration markets like Salt Lake City, Raleigh, Hartford, and Nashville now see more rental interest coming from outside their metro areas than from locals. Historically, rental demand serves as an early signal of future home sales since renting often allows people to test a community before buying. Zillow’s chief economist, Mischa Fisher, explains that a surge in out-of-town rental searches points to an upcoming wave of new residents. This trend is noticeable in places like Buffalo and Chicago as renters seek more affordable housing options compared to pricier metro areas where existing home prices stood at a $434,100 median in July. Rent prices, which had been mostly declining due to increased supply, reversed course recently with August marking the first month-to-month rent increase in four years. Despite this uptick, rents remain slightly below last year’s levels. Most out-of-town rental interest comes from neighboring states, but New York City stands out as an exception, with its renters searching heavily in Sunbelt cities like Raleigh and Florida markets such as Miami, Orlando, and Tampa. Affordability drives much of this movement, with renters in expensive regions opting for markets offering more value. Southern cities dominate in renter appeal, with many ranking highly on RentCafe’s “Best Cities for Renters” list, fueled by cost of living, income growth, and jobs. Markets like McKinney, Texas; Huntsville, Alabama; and Austin, Texas top this list, illustrating the ongoing shift toward regions combining lifestyle and economic opportunity.

CNBC 14 days ago

LIV Golf files for Chapter 11 bankruptcy protection

LIV Golf, the Saudi-backed upstart golf league, has filed for Chapter 11 bankruptcy protection amid financial struggles linked to a funding cliff. Initially supported by Saudi Arabia’s Public Investment Fund (PIF), LIV is now working on a restructuring agreement with BC Partners Advisors LP, the credit division of private equity firm BC Partners. The bankruptcy filing was made in the U.S. Bankruptcy Court for the District of New Jersey as part of a strategy to stabilize LIV’s finances and secure new investment. Earlier in 2026, LIV faced the impending withdrawal of PIF funding, which was scheduled to end after the current golf season. To address this gap, LIV attempted to raise up to $350 million through an investor roadshow. Under the proposed bankruptcy plan, and subject to court approval, the league is expected to transition to majority player ownership. LIV Golf continues to negotiate with players to finalize this new ownership structure. As part of the bankruptcy proceedings, PIF has agreed to extend $49.6 million in financing that will keep LIV operational during the restructuring. Following the exit from bankruptcy protection, BC Partners Credit and other minority investors are anticipated to provide additional funding to support LIV’s future endeavors. CEO Scott O’Neil expressed optimism about the league’s next chapter, emphasizing a player-first model and stronger fan engagement as key focus areas. LIV Golf initially positioned itself as a competitor to the PGA Tour by attracting top golfers with lucrative contracts. Despite plans to merge with the PGA Tour announced in 2023, a formal agreement has yet to be completed. The bankruptcy filing and restructuring efforts highlight LIV’s need to recalibrate amid funding challenges and competitive pressures in the professional golf landscape.

CNBC 15 days ago

Treasury yields face 4.8% test as fiscal risks threaten to spill into other assets

U.S. Treasury yields are confronting a critical threshold at 4.8%, a level that, if surpassed and sustained, could trigger significant challenges across various asset classes. Matt Maley, chief market strategist at Miller Tabak + Co., highlights that persistent fiscal deficits, extensive Treasury issuance, and sizeable corporate borrowing continue to exert upward pressure on long-term yields. Despite recent verbal efforts by the Treasury Department and Secretary Scott Bessent to temper rates, these interventions have yet to successfully lower borrowing costs, underscoring the difficulty in managing yields without addressing underlying fiscal issues. The government’s mounting debt, now exceeding $40 trillion, poses notable concerns for investors, compounded by the competition for capital from a record surge in corporate issuance. More than $8.4 trillion of U.S. government securities are set to mature by year-end, and September is expected to be a historic month for high-grade corporate debt offerings, with Goldman Sachs raising its 2026 forecast for investment-grade issuance to $2.3 trillion. This strain is not isolated to the U.S., as several developed countries including Japan, the U.K., and France face similar fiscal headwinds, leading to a broader global reassessment of bond market risks. Market observers note that while Treasury yields might experience short-term declines, these movements could be tactical rather than indications of a sustained reversal in the upward trend. Maley points out that the benchmarks for long-term Treasury yields have progressively climbed from mid-4% levels to nearly 4.8%, with some market participants eyeing the psychologically important 5% threshold. Michael Chen, general manager of Noah ARK Hong Kong, warns that a disorderly rise in long-term yields could cause repricing in assets reliant on long-duration cash flows, including certain bonds, high-growth equities, commercial real estate, and private assets. HSBC has adjusted its outlook accordingly, raising its forecast for the 10-year Treasury yield to 4.65% by the end of 2026, reflecting a higher baseline for long-term yields and the prospect of tighter monetary policy. The bank also revised Germany’s 10-year Bund yield forecast upwards. Overall, analysts stress that without substantial fiscal reforms, short-term easing in yields will not resolve the structural challenges facing government debt markets. Maley emphasizes that addressing these issues will be essential to stabilizing borrowing costs over the longer term.

TechCrunch 18 days ago

Nvidia confirms it will buy Hugging Face for $12.9 billion

Nvidia has officially announced its acquisition of Hugging Face for $12.93 billion, confirming earlier reports that had generated considerable excitement in the AI community. Hugging Face operates a vast platform that hosts over three million AI models, a million applications used by more than 18 million developers, and half a million datasets. CEO Jensen Huang assured that Hugging Face will maintain its commitment to open source and open-weight models, emphasizing that the platform will remain accessible to all developers regardless of their choice of frameworks, cloud services, or computing hardware. Hugging Face, founded in 2016, has quickly become a critical player in the AI space, attracting significant funding including a $235 million round in 2023 led by Salesforce Ventures, with investments from major tech companies like Google, Amazon, IBM, and Nvidia itself. Before this acquisition, Nvidia had already contributed extensively to Hugging Face’s ecosystem, releasing over 500 models and 250 open datasets on the platform. This move aligns with Nvidia’s strategy to foster an open AI ecosystem while advancing compatibility with its chips and expanding enterprise offerings with unused Nvidia compute capacity bundled with Hugging Face technologies. CEO Clem Delangue expressed enthusiasm about the collaboration, highlighting that while Hugging Face had established itself as a major alternative to closed-source AI, scaling further would require greater computing power, support, and collaboration—a need Nvidia is positioned to fulfill. The acquisition also signals a growing trend where Nvidia boosts its investment in open AI models, seen in its recent $6 billion deal with the coding startup Poolside and over $50 billion infused in AI research labs, further supporting open-weight models as vital for U.S. leadership in AI technology. Huang underscored the crucial role that open models play not only for innovation but also for cybersecurity, noting emerging companies that rely on such models to create autonomous security systems. This acquisition solidifies Nvidia’s dedication to open AI development and expanding the market for AI tools on hardware platforms that it dominates. Hugging Face’s continued growth and approach to open-source principles combined with Nvidia’s hardware prowess mark a significant step in shaping the future of AI accessibility and enterprise readiness.

CNBC 19 days ago

How much money Americans in their 30s and 40s have in their 401(k)s

New data from Fidelity reveals that the average 401(k) balances for Americans in their 30s and 40s have notably increased, fueled by a strong stock market. As of mid-2026, those in their 30s hold an average of $75,200 in their accounts, while individuals in their 40s have amassed around $156,800. Workers are also saving a historically high share of their income, with contributions averaging 14.4% of paychecks, including employer matches, nearing Fidelity's recommended 15% savings rate. Despite solid 401(k) balances, financial experts caution that these figures represent only a portion of retirement readiness. Fidelity suggests aiming for retirement savings equal to one’s annual income by age 30 and roughly three times income by age 40, but this includes all assets, not just 401(k) funds. Certified financial planners like Kevan Melchiorre and Adam Vega emphasize evaluating overall net worth, including home equity and debts, to get a more accurate picture of one’s financial health and progress toward retirement goals. Fidelity highlights unique advantages of the 401(k), such as higher contribution limits for 2026—up to $24,500 compared to $7,500 for IRAs—and employer matching programs, which encourage savings. However, the outlook isn’t bleak for those behind on savings in their 40s. Experts stress that it’s never too late to ramp up contributions, as starting sooner allows for more compounding growth, but even later starters can catch up by increasing their monthly investments when possible. Financial advisors recommend steady and increasing contributions over time, particularly as certain expenses like education costs decline during one’s 40s. They urge savers not to be discouraged if they lag behind benchmarks and to focus instead on consistent progress. The overall message is that while current 401(k) balances in the 30s and 40s are growing, comprehensive retirement planning should include multiple accounts and assets to build long-term financial security.

CNBC 19 days ago

Google starts September with AI momentum after longest monthly losing streak in over a decade

Google has kicked off September with renewed momentum in its artificial intelligence (AI) efforts after enduring its longest monthly losing streak in over a decade. On Wednesday, Alphabet debuted Gemini 3.8 Flash, its third Flash model in as many weeks, alongside a new cybersecurity AI model aimed at government and enterprise clients. This launch follows a challenging summer marked by talent departures, restructuring at DeepMind, and a lull in AI leadership momentum. The new Gemini 3.8 Flash model is designed to enhance coding and agentic capabilities, areas where AI companies are focusing to generate enterprise revenue. Google touts it as the best in reasoning and coding yet, with significant improvements over its predecessor. Though the model keeps Google competitive, some analysts still see the company trailing behind leaders like OpenAI and Anthropic in the enterprise AI market, recommending a hold stance on the stock. Pricing remains a critical component of Google's AI strategy, with Gemini 3.8 Flash offered at the same introductory cost as the prior model, and new flexible enterprise payment options including pay-as-you-go and monthly spending caps. Google is leveraging its scale, noting that nearly 75% of Google Cloud customers use its AI products, spending about 50% more than their initial commitments. DeepMind's Demis Hassabis envisions Gemini evolving into a general-purpose AI layer coordinating cheaper, specialized models. In addition to AI developments, Alphabet received a boost from a favorable federal judge ruling in its antitrust battle, allowing Google to retain its ad exchange rather than being forced to sell it. This decision, coupled with steady 14% growth in Google’s ad business, underpins confidence from investors, including Berkshire Hathaway’s CEO Greg Abel, who publicly expressed strong support for Alphabet’s AI position and broader business prospects.

TechCrunch 19 days ago

OpenAI’s new reasoning technique alarms AI safety experts

OpenAI has introduced a new reasoning approach called “recurrent depth,” or “opaque recurrence,” in its latest Astra model. Unlike traditional reasoning models that follow a clear sequential chain of thought, this technique enables the model to repeatedly process a query in a loop, leading to less transparent and non-linear reasoning steps. While this method could improve the model's capabilities, it also poses challenges for monitoring and understanding the model’s internal decision-making processes. The introduction of this reasoning technique has sparked concern among AI safety experts. Prominent figures like Buck Shlegeris, CEO of Redwood Research, and advocate Zvi Mowshowitz have expressed fears that expanding the use of opaque recurrence could significantly diminish the monitorability of AI reasoning. They warn that this might accelerate a risky “race to the bottom” among AI developers, potentially making it harder to detect misalignment or misconduct in advanced AI systems. Despite these worries, OpenAI has clarified that Astra’s implementation of recurrent depth is currently limited, with efforts to maintain legible chains of thought. According to OpenAI’s chief scientist Jakub Pachocki, chain-of-thought monitoring remains a core priority, and the model does not employ so-called “neuralese,” or fully latent reasoning inaccessible to scrutiny. OpenAI also plans to enhance chain-of-thought monitoring as part of its safety strategy moving forward. Other major AI labs, including Anthropic and Google DeepMind, are reportedly exploring similar techniques, raising further debate about the future of AI transparency. AI safety experts like Redwood Research’s Ryan Greenblatt caution that a natural progression toward greater use of opaque reasoning could eventually render AI reasoning invisible, making governance and safety interventions far more difficult. This development signals growing urgency in balancing AI innovation with robust safety practices.

CNBC 20 days ago

Australia posts second-quarter growth of 2.1%, beating expectations

Australia's economy demonstrated stronger-than-expected growth in the second quarter of 2026, expanding by 2.1% year-over-year, surpassing the 1.8% forecast by economists surveyed by Reuters. This growth, while slightly below the 2.5% recorded in the previous quarter, still indicated robust economic activity. On a quarterly basis, GDP increased by 0.4%, edging out predictions of a 0.3% rise, driven primarily by private demand and mining exports. Despite the overall economic growth, household spending remained cautious, increasing by only 0.4%. Elevated fuel prices linked to the Middle East conflict prompted households to reduce fuel consumption and curtail both domestic and international travel. This subdued consumer behavior highlighted a cautious sentiment among Australians amid continuing inflationary pressures and geopolitical uncertainties influencing costs. The stronger-than-anticipated GDP figures provide the Reserve Bank of Australia (RBA) with greater flexibility to continue tightening monetary policy in its effort to control inflation. At its recent August meeting, some RBA board members discussed the possibility of additional policy tightening, as inflation remained above target levels. Australia's July inflation rate came in at 3.5%, exceeding expectations and underscoring the persistent challenges the central bank faces. Looking ahead, the RBA expects inflation to ease only gradually, aiming to bring it back within the 2%-3% target range by late 2027. With economic growth surpassing forecasts and inflation remaining stubbornly high, the central bank's upcoming decisions on interest rates will be closely watched by markets and policymakers alike as they balance the need to support the economy while curbing inflationary pressures.

TechCrunch 23 days ago

Sony Music, Warner sue Anthropic, alleging a “brazen campaign” of intellectual property theft

Sony Music Publishing, Warner Chappell, and several other major music publishers have filed a lawsuit against Anthropic and its co-founders, alleging a “brazen campaign” of intellectual property theft. The complaint, lodged in the U.S. District Court for the Northern District of California on August 28, 2026, accuses Anthropic of illegally torrenting, scraping, and downloading millions of copyrighted works to train its AI model Claude. This includes music-related content such as lyrics and sheet music, intensifying prior legal disputes around unauthorized use of protected materials. The lawsuit marks a significant escalation in ongoing conflicts between Anthropic, an AI research lab, and the music publishing industry. The plaintiffs describe Anthropic’s behavior as “blatant theft” and “flagrant piracy,” highlighting the scale and scope of the alleged copyright violations. Anthropic has responded by rejecting the claims and expressing its intention to defend itself firmly in court. This case draws attention to the controversial practices involved in sourcing training data for AI systems and the legal ramifications facing AI developers. This is not Anthropic’s first lawsuit involving intellectual property infringement. The same legal teams behind this case also represent Concord Music Group and Universal Music Group in an earlier suit filed in January 2026. Furthermore, Anthropic recently settled a separate landmark case, Bartz v. Anthropic, where it was ordered to pay $1.5 billion after a court determined that while using copyrighted works for AI training could be lawful if obtained legally, Anthropic had acquired many of the materials through piracy. The latest lawsuit builds on these earlier proceedings but widens its focus by emphasizing claims of illegal torrenting as a method Anthropic allegedly used to amass copyrighted content. This legal development underscores the growing tension between content owners and AI companies over responsible data sourcing. As the battle continues, the outcome may have far-reaching implications for the music industry’s role in AI development and the boundaries of lawful training data use.

TechCrunch 23 days ago

“We’re not doing 30 bets a year”: Vijay Pande on betting small after running $4 billion at a16z

Vijay Pande, formerly head of a16z's nearly $4 billion biotech practice, has made a notable shift by leaving the large venture fund to co-found VZVC, a much smaller, AI-focused venture firm. Unlike the previous model that involved numerous bets annually, VZVC concentrates on just a handful of high-impact investments, roughly five a year, allowing for deeper involvement and collaboration with founders. Pande’s move reflects his belief that precision and quality in investments trump volume, prioritizing long-term relationships with founders who emphasize integrity and collaboration. Pande explains that biology is transitioning from a “science of discovery” to an “engineering” approach, largely driven by advances in AI and machine learning. These technologies enable better targeting of drugs to diseases and improved clinical trial designs, though the costs and high failure rates in trials remain significant. He underscores that AI models have the potential to surpass traditional animal models in predicting drug efficacy in humans, and highlights the promise of precision medicine to tailor treatments more effectively to individuals rather than applying broad population averages. A key challenge in applying AI to biology and medicine is the lack of openly shared datasets. Unlike text or image data that can be widely scraped and distributed, biological data tends to be siloed in proprietary datasets controlled by companies. Pande sees hope in the emergence of shared biological atlases and open-source foundation models that mirror trends in large language models, positing they could democratize access and accelerate innovation in AI-enhanced healthcare. Reflecting on his past experience at a16z, Pande notes that while technical innovation is critical, success also heavily depends on mastering go-to-market strategies. His new firm’s structure intentionally emphasizes select investments and hands-on support rather than chasing hot deals. This approach aims to foster enduring partnerships with founders who think long-term about winning collectively rather than competing aggressively, marking a thoughtful evolution in biotech venture capital amid an AI-driven transformation of medicine.