$1 Chatbot Special

Hey Superheroes,

The RBA just delivered its third rate cut this year, trimming the cash rate by 25 basis points to 3.60%. 

Inflation continues to cool, with headline inflation now at 2.1% and trimmed mean inflation sitting at 2.7% – both within the RBA’s target range. With private demand gradually recovering and real household incomes on the rise, the central bank is stepping back from its tightening stance.

It was also a big week of earnings reports and new highs for markets. Let’s dive into the biggest stories.

AI Bargains & Billion-Dollar Bets

Big Tech is battling for control of U.S. government AI contracts and they’re offering massive discounts to win.

This week, Amazon, OpenAI, and Anthropic all ramped up efforts to supply artificial intelligence tools to federal agencies. The result? A wave of eye-popping offers designed to make AI adoption in government faster, cheaper and stickier.

🏛️ $1 chatbots

Anthropic has offered its Claude AI chatbot to all three branches of the U.S. government for just US$1. 

It’s a bold move that mirrors OpenAI’s deal last week with the U.S. General Services Administration (GSA), which gives federal agencies access to ChatGPT Enterprise for US$1 per agency for the next year. OpenAI says the deal will support over 2 million federal employees while early pilots with state governments showed ChatGPT saving public servants up to 95 minutes a day on routine tasks.

Meanwhile, Amazon Web Services (AWS) announced it would provide up to US$1 billion in savings for cloud migration, AI modernisation and training over the next three years. The “landmark agreement” with the GSA aims to overhaul legacy IT systems and embed AI into government services.

🔍 Why the Government Market matters

Historically slow to adopt emerging tech, the U.S. government is now leaning hard into AI. The push is part of the Trump administration’s broader AI action plan and digital overhaul. 

For Big Tech, this isn’t just about revenue – winning public sector contracts helps establish long-term infrastructure dominance and build trust with enterprise clients globally.

It’s also a hedge against slowing consumer growth. Institutional deals provide stickier revenue streams and can help entrench AI platforms into critical systems like national security, budgeting, and public service delivery.

🤯 And Then There’s Perplexity…

In a surprise twist, AI search startup Perplexity offered to buy Google’s Chrome browser for US$34.5 billion. While the bid is unlikely to succeed, it’s a direct response to a U.S. antitrust ruling that could force Google to divest Chrome.

Perplexity pledged to maintain Google as Chrome’s default search engine (for now) and promised not to make “stealth modifications.” It even lined up unnamed investors to fund the acquisition. The offer is audacious but it reflects a broader shift as startups challenge Big Tech’s incumbency in search, AI and infrastructure.

CBA’s Dividend Surprise & AI-First Future

CBA has delivered a stronger-than-expected result… but markets weren’t entirely convinced with their outlook.

The bank posted a full-year net profit of A$10.13 billion, up 7% from FY24, alongside a surprise final dividend of A$2.60 per share, beating analyst expectations. That brings the full-year dividend to A$4.85 fully franked.

Despite the headline result, shares fell over 5% on the day as analysts flagged soft FY26 guidance and lacklustre retail momentum.

💰 Still Australia’s Most Profitable Bank

• Cash NPAT: A$10.25 billion (↑4%)
• Net interest margin: 2.08% (flat H2, ↑9 bps YoY)
• Return on equity: 13.5% (↓10 bps YoY)
• Payout ratio: 79% of cash NPAT
• Loan Impairment expenses: A$726 million (↓9% YoY)

Underlying operating expenses rose 6% to nearly A$13 billion largely driven by wage inflation and a 14% increase in tech investment.

Despite strong fundamentals, some analysts called the result “just OK” as CBA’s valuation remains elevated after a two-year rally. Still CBA remains the most profitable bank in the country.

🤖 Fighting Fraud with OpenAI

CBA also announced a new multi-year strategic partnership with OpenAI, becoming its official Australian banking partner.

The deal gives CBA staff access to enterprise-grade tools like ChatGPT and will support the development of AI-powered solutions to detect scams and improve customer experience.

CEO Matt Comyn says the bank is investing in AI training for employees and sees technology as key to staying globally competitive. It follows earlier moves by CBA to boost automation and machine learning capabilities across its operations.

🔦  Some other things we’re shining the Spotlight on:

BULLISH BULLISH: Coindesk-owner Bullish soared 143% on its NYSE debut after raising US$1.11 billion at US$37 per share in its IPO. The crypto exchange, backed by Peter Thiel, hit US$90 on open – valuing the company at over US$13 billion.

MINRES TURNS ON THE TECH: Mineral Resources is teaming up with small-cap Livium in a 50:50 joint venture to commercialise its LieNa lithium processing tech. The JV plans to license the tech with an 8% product royalty. MinRes shares jumped 12% the day of the announcement. 

JB’S POWER PLAY: JB Hi-Fi posted a 5.4% rise in full-year NPAT to A$462.4 million but still missed market estimates. This combined with ‘valuation’ worries  sent shares down for the week. The result came alongside news that CEO Terry Smart will retire in October, with COO Nick Wells set to take the reins. From FY26, the company will lift its dividend payout ratio to 70–80%.

Keep up to date on the markets by following us on Instagram @superheroau.