Accenture (ACN) is getting hammered by AI on two fronts:

1.) Companies are doing fewer discretionary projects, particularly on the AI front. Why Accenture ever bucketed this business in the “Managed Services” bucket is beyond me, probably to try to prop up Managed Services when AI was hot. Managed Services bookings were down 14.7% YoY in Q3, and this is likely the culprit: AI Man Svcs.

2.) Companies that know how to use AI tools such as Claude Code and Codex leverage those tools to automate work such as data translation when switching vendors. I talked about this earlier. Guess who the best AI teacher is? Not Accenture. It’s the tools themselves. Claude Code and Codex are the best Claude Code and Codex tutors. So, if you have an ounce of curiosity, if you wish to save time and money, deploy Claude Code and Codex on your next Technology project before writing a $10 million check to Accenture. Trust me, Accenture’s consultants aren’t using the tools any more than you are.

3.) You may listen to the Accenture (ACN) Q3 EPS call, inclusive of TEK2day’s live earnings sentiment scoring HERE.

My view is that the price of oil looms much larger as an economic backdrop than Fed Funds in the near-term. If the U.S. and Iran have 60 days to negotiate post Friday, Iran then has every incentive to squeeze every last concession from the U.S.

Just look at the deal calendar that Iran set (not the U.S.) The deal calendar is 60 days, meaning the world’s oil reserves will have bottomed by the end of 60 days. I understand that the Strait technically will be open this Friday if Israel does not incite violence, but oil flow through the Strait won’t be humming at pre-War levels most likely ever. The analysis I’ve read from different parties suggests oil flow will be at 25-40% of pre-War capacity steady state and it may take a year to get there.

Iran has a ton of leverage and they would be foolish to not exercise every ounce of negotiating leverage.

The punchline is the price of oil is not going to “drop like a rock” as Trump says. There is a very real risk the price of oil will set new highs this summer.

We added watchlist functionality to augment News, SEC filings, market data and fundamentals at TEK2day Finance.

At some point we will integrate our Earnings Call Sentiment tool once we have grown the database of transcripts. That’s probably an early 2027 product integration as I need time to think about the user experience - self service, we build it, or both.

I also plan to roll out Equity Trading. I am not sure if I will do so as a standalone integration, or by way of integrating Kilby. I am leaning toward both, first a standalone integration with our partner Alpaca, followed by integrating Kilby as a premium upgrade to our Investment Management AI assistant.

Last but not least is Portfolio Construction. There are a number of quality Portfolio Construction open source tools, some heavily used by Quants. My diligence here is will I be able to incorporate such a tool without having to tune it? If so, we will integrate one of the tools. If not, we will not.

TEK2day Finance is not meant to replace Bloomberg, but for the university that wants a low-cost alternative, or for the Retail investor, or the institutional firm that wants a low-cost terminal to augment their fleet of Bloomberg terminals, TEK2day Finance would make sense for these use cases and others.

Try it for free at TEK2day Finance.

• OpenAI’s 5.6 model release has got to be delayed after this weekend’s Fable 5 fiasco.

• NVIDIA should trade down as the Frontier models move into regulated territory. The market has not figured this out yet. It will when it shows up in the numbers this year or next as the shift to opensource has been going on all year.

• Opensource models won’t be the monolithic “everything” models that the frontier models are. They will be industry specific, sector specific, domain specific, company specific. Different ballgame. Not all uses cases will require the latest chip architecture with the fastest inference and so forth.

• Companies with proprietary data have power. Whether they realize this is another story. Make take the next generation to take the CEO chair from today’s Luddite CEO class.

• You are missing out if you do not use the models in your day-to-day as a person, as an exec, as a company. You do not have to hand your life story over to the models, that is not what I am advocating. I am advocating that you explore. That you experiment - inexpensively. That you push, probe and stretch the models. Make them bend to your will.

Dario will either learn how to navigate the Federal Government, or he will be replaced as Anthropic CEO, or the Government will force a sale of Anthropic.

Bezos, Jassy & Amazon (AMZN) will be the preferred buyer over Google DeepMind (GOOGL). Google DeepMind has a shot at retaining Anthropic talent. Amazon does not, yet AMZN is tight with Trump.

Meanwhile, the world screams for an opensource answer to Anthropic’s anti-competitive regulatory capture strategy and to the Federal Government’s heavy hand.

Need someone to spearhead the effort? I’m your huckleberry. The problem is a 1GW datacenter costs $100 billion to build (as of last week, maybe a bit less today). 5GW = $500 billion. You see where this is going? AI becomes cost prohibitive very quickly.

Unless of course companies run local opensource models that are industry-specific. That is doable from a cost standpoint. Very doable. Like $10 million in OpEx per year to run at scale for an S&P 500 size company kind of “doable”. Find me if you need help setting up your AI model.

Regarding Anthropic and OpenAI, if the U.S. Taxpayer is going to kick in (we already are on electricity subsidization of the AI companies plus land), then the U.S. Taxpayer ought to get an equity stake or unfettered model access, unshackled from KYC, prompt storage, and other gates and privacy violations.

Regarding my earlier post about the Iran War ending, Iranian officials have said that Iran will open the Strait Friday so long as all hostilities cease within Iran and the Middle East, including Gaza. If that happens, the Iran War ends. Bibi is in the unique position of being able to torpedo this plan to end the Iran War. Will he do something stupid? I’m 50/50 on how he will behave.

I do not know the deal terms. What I do know is that the U.S. came out of this fiasco weaker, Iran much stronger. My sense is that the Trump Admin knew it had to find resolution before oil supply levels bottomed sometime in July which would cause the price of oil to skyrocket.

Now we can get back to other issues, such as a Sovereign Wealth AI fund. Are you kidding me? Sovereign Wealth funds are for countries that have a fiscal surplus. The U.S. is $40 Trillion in debt and runs $2 Trillion annual deficits. Any year in which the U.S. runs a surplus (won’t happen again in my lifetime), that capital needs to be allocated toward paying down the debt.

Back to Anthropic and the Fable 5 ban, Dario and his team are at the White House now as UFC Freedom 250 takes place on the South lawn. I like the UFC, but we don’t have $60 million to blow on discretionary events.

Assuming Fable 5 comes back online, I’m not OK with Dario & Company nerfing access to a model I paid for, or violating privacy terms, or using my prompts to improve its model in violation of its terms of service. All of this is forcing me to have to use opensource models.

Meanwhile, Dario and his regulatory capture strategy is trying to get opensource models banned by way of forming a Government agency that will approve/reject all models from all producers. This would be like setting up a gateway to the Internet. Dario is a scumbag. Plain and simple. He wants to kill competition in the womb. The problem for Dario and the regulators is that opensource models are not going away. Once I download them locally, you can’t touch them, which is precisely what companies are doing now. By the way, it appears China distilled Fable 5.

Here’s an AI key:

• Dario & Anthropic = bad

• Government gates on models = bad

• Opensource models = good

Amazon’s AWS unit pulled a power play as I wrote earlier by sidelining Anthropic’s Fable 5 model - a competitor to AWS’ Kiro coding agent. AWS is also an Anthropic partner and has a sizeable investment in the company.

I don’t know that the other hyperscalers will be able to use the same playbook on Anthropic, for when the dust settles, AWS (recall Bezos has Trump’s ear), will be the defacto babysitter for all Anthropic models. AWS’ guardrails will be the final blessing required by the Federal Government before releasing new Anthropic models into the wild. AWS has thus sidelined GCP and Azure insofar as their influence over Anthropic is concerned.

Perhaps some cloud provider, maybe one of the neocloud companies, will step up become the defacto guardrails for DeepSeek and other models as many users will access these models via the cloud versus local installations. This is an opportunity for a cloud services company to step into the opensource model breach.

Fable 5 - as I wrote last week - is significantly better than Opus 4.8. I was maybe 75-100% faster using Fable 5 in terminal vs. Opus 4.8. I imagine that Anthropic’s Fable 5 model will be reinstated with some caveats. Maybe all user data will be shared with the NSA, I’m not sure what the caveats will be. I assume the Government will allow sales to users outside the U.S., so long as all activity goes to the NSA. Until then, former Fable 5 developers lose significant productivity.

Government’s heavy hand should give investors pause:

1.) More companies and individuals will use DeepSeek and other opensource alternatives, which is bad news for the proprietary model companies.

2.) Government interventionism in private markets is never a good thing. Just look at the equity market, which hasn’t traded on fundamentals since 2020’s COVID interventionism (QE, BTFP, fiscal stimulus, various Fed credit programs, zero reserve requirements, low interest rates, deficit spending, etc.), and remains distorted and disconnected from economic reality (don’t look at Federal Govt. figures such as CPI to gauge economic health, as those figures are heavily manipulated - for example, look at CPI growth versus money supply growth over the past year, the latter is a much truer measure of inflation and outpaces the former).

3.) There is the technology element to consider. Fable 5 is so much better than Opus 4.8 and Codex 5.5 that AI model progress has definitely been halted. The more important things I am working on I do not want to work on without Fable. I do not have days to waste why the Federal Government takes an AI primer. Frankly, I don’t know what’s going on. I’ve read all of the notes that have come public. Part of this feels like Bezos pushing Jassy to bitch about Anthropic to Lutnick. Part of this feels like Anthropic has wanted this to happen because it wants Government to subsidize models and wants to be first to be nationalized. But no doubt that AI progress has slowed, which is bad for the chip companies. My guess is that Jensen has already been in touch with the White House as this is not good for NVIDIA (NVDA).

We are going to see a lot more companies tune their own models on prem - and DeepSeek will be the big winner - until the Trump Admin bans DeepSeek and other Chinese models.

Big cluster. Government is never here to help. Ever. Better to get out of the way.

It is reported that Amazon’s AWS unit reported to the Secretary of Commerce - Jeffrey Epstein’s next door neighbor Howard Lutnick - that Fable 5 could be jailbroken. Funny, because any model can be jailbroken. The Commerce Department’s reaction was to shut down Fable 5. Step away Feds, you will only make it worse, never better.

• Meanwhile, Opus 4.8 isn’t 60% as good as Fable 5.

• I still believe that Anthropic wants regulation and “too big to fail” status.

• DeepSeek v4 and others are taking share from Anthropic and OpenAI and will continue to do so. China is watching the U.S.’s self-inflicted AI policy mess unfold carefully.

There’s a couple of reasons why I started to look at DeepSeek v4 this week - and I am far from alone in doing so - many Devs are moving to opensource alternative LLMs (the best open models are Chinese).

The reasons are:

1.) with the release of Fable 5, Anthropic decided it would store user prompts and model responses for 30 days even if the customer agreement said this would not be the case.

2.) more importantly, Anthropic unilaterally decided it would downgrade user access to its Fable 5 model without disclosing it if it deemed users were working on subject matter that was related to Anthropic’s core business. This happened to me when I was using Fable 5 to de-bug TEK2day Finance’s initial build. I was not working on anything AI-related, yet one minute I was inside Claude Code using Fable 5, the next minute when I checked which model I was using as something felt different, Claude Code showed I was operating Opus 4.8 without having ever selected that model.

What we use LLMs for in Kilby - reasoning through business problems, scoring transcripts for sentiment, building investment dossiers from disparate data sources, calling on tools and the like, I don’t know that we need a Mythos/Fable-level model for that. We likely will not rip out Anthropic from Kilby as I already finished the hard work of wiring Claude into Kilby’s infrastructure, but I will integrate DeepSeek v4 and subsequent DeepSeek models as an option by year end, and I very well may make DeepSeek the default LLM option.

Add to these reasons the fact that Anthropic clearly wants to be regulated as too big to fail, and you can understand why the developer community is pissed off at Anthropic. Anthropic knew the Government would pull its Fable/Mythos model. It will soon be restated. This is political theater. Next, there will be some agreement where the U.S. taxpayer is forced to invest in Anthropic. The Federal Government will subsidize Anthropic, which is now a quasi-utility like a power company or Fannie Mae. All of the user information from Anthropic’s models will be shared with the NSA/DoD just as cellphone data is mass collected.

The smart money is diversifying away from Anthropic. This is irreversible. Just as oil will never flow through the Strait again as it did in January, companies large and small, startups and giants, are diversifying away from Anthropic and OpenAI. Forever.

Anthropic on X

If SpaceX is worth $2T, Kilby AI + TEK2day Finance, “TKAI” is worth $10B. That’s today’s equity market talking.

The ultra liquidity of the April 2020-present day period has inflated assets, but conversely has devalued the Dollar, which will be this mega bubble’s ultimate undoing. If the U.S. does not reel in spending and easy credit, interest rates will spike well beyond the 18% of the 1980s - there is far more risk in the system today. At some level no amount of fiscal or monetary support will matter as the U.S. will be in hyper-inflationary mode.

I hope the industry analysts are wrong about oil supply, because if reserves truly are set to bottom sometime in July, oil will spike to new record highs. It won’t matter what happens with the Iran War as supply simply will not be able to come online fast enough and high prices will persist for months.

This is the DoD/CIA and Government contractors who wanted to take Iran. These fools either thought that Iran would roll over like VZ did, or, they want another 20 year war to replace Afghanistan.

Meanwhile the Russia Ukraine war persists.. another making of the DoD. Senior DoD officials figure if they serve up what Lockheed, RTX, Boeing and Northrup want, they will be eligible for Board seats with those companies when they retire.

The U.S. will generate a $2-3 Trillion deficit this year, pushing the total public debt above $40 Trillion. The U.S. is insolvent. The Dollar will continue to lose the last vestiges of its value versus gold as Washington continues to spend money it does not have.

The big open item for Kilby and TEK2day Finance is equity trading, for which we will use a technology partner - Alpaca - and go live in Q3.

TEK2day Finance is integrated into Kilby, and Kilby’s LLM chat interface will soon be integrated into TEK2day Finance as a premium upgrade. This will go live in Q3 with equity trading.

In the background I’ve started to evaluate DeepSeek v4. We may offer this LLM as an ultra-low cost premium upgrade in Q4, but that is yet to be determined.

TEK2day Earnings Call Analysis for Oracle (ORCL) FY ‘26 Q4 earnings call:

• Real-time EPS call sentiment scoring: HERE

• Earnings call debrief: HERE

There have got to be better businesses for Oracle to be in than building data centers to house chips for 2 model companies. I will have another piece about Anthropic’s Fable 5 model and how Anthropic downgrades it if the model believes you as the customer are building something that may be tangential to Anthropic. Anthropic is going to end up pushing customers away...

Starlink, AT&T, Comcast comparison: HERE

LLM side note: I am approaching 12-15 hours with Anthropic’s Fable 5 model fixing small bugs written by OpenAI Codex 5.5. Fable 5 is so far ahead of 5.5 in terms of writing good code and finding bugs that it is not close. Codex 5.6 better close the performance gap if OpenAI wishes to remain relevant.

The most interesting thing will be how Apple integrates Google’s AI capability into its hardware and software. Siri seems to be dead and gone, but perhaps Google will revive the old gray Siri.

I struggle with accepting apps as they are today carrying forth 20 years from now. I believe app developers will evolve to become API providers and MCP server builders whose products will feed “Super-Apps” run by Anthropic, OpenAI and Google. I’m not sure that Apple will have a seat at that table.

You may try TEK2day Finance here for free: TEK2day Finance.