Capcom's Record-Breaking Sales and the AI Arms Race: A Week in Tech

This week in technology saw a fascinating juxtaposition of traditional gaming success and the ongoing AI revolution reshaping the industry landscape. Capcom, the Osaka-based publisher behind Street Fighter and Resident Evil, reported record-breaking sales of 34.64 million units for the nine months ending December 2025, representing a 13.5% increase year-over-year. The company's stock jumped over 10% following the announcement, demonstrating that established gaming franchises still command significant market power even as the industry undergoes technological transformation.

Meanwhile, the AI arms race continued to accelerate with staggering investment figures. Anthropic is reportedly raising $20 billion at a $350 billion valuation, doubling its previous target. The company has revised its revenue forecasts upward to $18 billion in 2026, $55 billion in 2027, and $148 billion by 2029, though it has delayed its cash flow positive expectations by a year to 2028. SoftBank is in talks to invest up to $30 billion more in OpenAI, building on its existing $22.5 billion stake from December 2025. These massive funding rounds underscore the winner-take-all dynamics emerging in the foundation model space.

In hardware, ASML reported record quarterly bookings of €13.2 billion in Q4, more than double analyst expectations of €6.32 billion. The Dutch semiconductor equipment maker projects 2026 full-year sales between €34 billion and €39 billion, above the €35 billion estimate. However, in a surprising move, ASML announced plans to cut 1,700 jobs, or 4% of its workforce, primarily in its Tech and IT organizations. The company's stock still jumped 5% pre-market, suggesting investors view the job cuts as prudent cost management rather than a sign of weakness.

SK Hynix also reported strong results, with Q4 revenue up 66% year-over-year to $23 billion and operating profit up 137% to $13.3 billion, both company records driven by AI HBM (High Bandwidth Memory) demand. Nvidia has allocated approximately 70% of its 2026 HBM4 demand to SK Hynix, which Counterpoint estimates will account for 54% of the global HBM4 market in 2026.

On the corporate restructuring front, Amazon is planning to cut approximately 16,000 roles across the company as part of an ongoing effort to reduce organizational layers and bureaucracy. This follows cuts in October 2025 and appears to be part of a broader efficiency drive. Additionally, Amazon plans to close all 57 Fresh and 15 Go locations in the US, pivoting its physical retail strategy to focus exclusively on Whole Foods.

Pinterest also announced plans to lay off less than 15% of its workforce by Q3 and cut back on office space as the company reallocates resources to AI teams. These moves reflect a broader trend of tech companies prioritizing AI development over other initiatives.

In regulatory developments, TikTok settled a California lawsuit ahead of a landmark social media addiction trial, avoiding a case where plaintiffs planned to argue that social media platforms are inherently defective. The settlement means TikTok will avoid a trial that could have set important precedents for the industry.

On the innovation front, OpenAI launched Prism, a free cloud-based LaTeX editor that embeds GPT-5.2 to assist in scientific paper drafting and citation management. This release showcases what OpenAI's new in-house team, OpenAI for Science, has been working on, providing researchers with AI-powered tools for academic writing.

Samsung confirmed that the Galaxy S26 series will introduce a new display feature designed to improve privacy when using your phone in public, offering "privacy at a pixel level" to protect users from "shoulder surfing." This feature highlights how AI and advanced display technologies are being combined to address real-world user concerns.

In the cryptocurrency space, Tether launched USAT, a US-regulated stablecoin issued by Anchorage Digital Bank, marking the company's direct return to the US market that it left in 2018. Tether CEO Paolo Ardoino also revealed that the company now holds approximately 140 tons of gold, worth around $23 billion, and has been buying one to two tons per week.

These developments paint a picture of an industry in transition. Traditional tech companies like Capcom are finding new growth through established franchises, while AI companies are raising unprecedented sums to fund their expansion. Hardware manufacturers are seeing record demand but still making strategic workforce adjustments. And across the board, companies are reallocating resources toward AI development, suggesting that regardless of which specific approaches succeed, AI will be the defining technology trend shaping the industry's future.

The contrast between Capcom's organic growth through beloved franchises and the massive external funding required by AI companies raises interesting questions about different paths to success in the current tech landscape. While AI companies burn through billions in pursuit of breakthrough models, traditional gaming companies are demonstrating that strong IP and execution can still drive substantial growth without the same level of capital intensity.

As the industry continues to evolve, the coming months will likely see further consolidation in the AI space, with well-funded companies pushing for market dominance while others struggle to keep pace. The job cuts at companies like ASML and Amazon suggest that even as overall demand grows, companies are becoming more selective about where they invest their human capital, prioritizing AI and efficiency over traditional growth metrics.