Get ready to hear the latest updates and news on Atombeam. CEO Charles Yeomans will be live in the StartEngine app this Friday for an update about all of the many exciting items in progress behind the scenes.

The conversation will take place at 11am PT / 2pm ET. To get ready to join, just:

• Download the app and log in (Apple App Store | Google Play Store)
• Follow Atombeam and sign up for push notifications
• Allow notifications in your settings – we’ll let you know when we go live.

This is a great chance to hear from our leadership directly and get your questions answered. See you there.

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This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view the Offering Circular and Related Risks.

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Hi Everyone,

Two developments over the past 10 weeks deserve watching, because we believe together they may potentially mark the beginning of a price war in artificial intelligence. If that reading is correct, we believe the consequences will fall unevenly across the industry, and they may fall in Atombeam's favor.

What just happened

On April 30, xAI released Grok 4.3 with an input price cut of roughly 40%, bringing its flagship reasoning model to $1.25 per million input tokens and $2.50 per million output tokens, with a 1 million token context window and no long-context surcharge. Industry analysts noted that this prices long-context reasoning work at a small fraction of what Anthropic and OpenAI charge for their flagship models, with one analysis putting the gap at roughly 12 to 1 against Anthropic's top model. Some coverage of the launch described it plainly as the opening of a price war for reasoning models.

Then on July 1, Bloomberg reported that Meta is building a cloud business, reportedly called Meta Compute, to sell its surplus AI computing capacity and hosted models to outside customers. The market reaction was immediate. Meta's stock rose about 9% in a single session, while CoreWeave fell 14% and Nebius fell 17% on fears that Meta will undercut their pricing. Meta has guided to $125 billion to $145 billion in capital spending this year. We believe that if even a fraction of that capacity is offered to the market at aggressive prices, the cost of AI compute falls for everyone.

Why the challengers can afford this

Meta and xAI share a structural advantage: neither depends on selling intelligence to survive. Meta funds its AI buildout from an advertising business that generated over $55 billion in revenue last quarter. Its data centers are already being paid for out of that cash flow, so the marginal cost of selling access to them is low, and Meta can price aggressively without threatening its core business. xAI is backed by Elon Musk's capital and bundles Grok into X subscriptions. For both companies, cheap AI is a strategic weapon. It does not have to be a profitable product line for a very long time, if ever.

Why this is harder for Anthropic and OpenAI

For Anthropic and OpenAI, tokens are the business. Every price cut comes straight out of the only meaningful revenue line they have. And the revenue requirements in front of them are staggering. Press reports indicate that the two companies have made compute commitments measured in the hundreds of billions of dollars, and their reported projections call for revenue to roughly double every year through the end of the decade to support those commitments.

A price war puts that math under severe pressure. If prices per token fall 40% and usage grows 40%, revenue is roughly flat. These companies do not need flat; we believe they need to double.

They face this squeeze at the very moment their customers are gaining leverage. Enterprises moved to token-based billing early this year and quickly discovered they could not predict, or in many cases even see, their AI costs. Uber has reportedly capped employee AI spending at $1,500 per user per month. A KPMG survey reported by the Wall Street Journal found that only 26% of companies have a comprehensive view of their AI costs. When buyers are already questioning the bill, a low-priced alternative from Meta or xAI becomes a powerful negotiating tool, whether or not the buyer ever actually switches.

We believe Anthropic and OpenAI will be forced to choose between two uncomfortable paths: match prices, which undermines the revenue growth their compute commitments require, or hold prices, which cedes the cost-sensitive segment of the market to challengers with deeper subsidies.

What this means for Atombeam

We think a price war confirms the thesis we have built this company around: the defining problem of the AI era is the cost of intelligence, and the durable winners will be those with a structurally lower cost of delivering it.

Neurpac benefits in either scenario.* It reduces the volume of data that must move across networks and sit in storage, and that value holds no matter which model provider wins the pricing battle. If cheaper AI accelerates deployment at the edge and across constrained links, the amount of data in motion grows, and that is Neurpac's market.

PCM sits outside token economics entirely.** It runs without GPUs, can operate in a few megabytes of working memory, and in prototype testing has demonstrated roughly 840x the compute efficiency of a small language model on learned subjects. A price war among the giant models is ultimately a contest over who can absorb losses on an expensive architecture the longest. We believe the more interesting answer is a fundamentally cheaper architecture. When we tell enterprises that Private AI means predictable cost with data that never leaves the firewall, and that our prototype has produced zero hallucinations in our testing to date, we believe the current chaos in AI billing is making that pitch for us.

Where we could be wrong

We want to be careful about what we know versus what we are inferring. The Meta Compute story rests on a Bloomberg report; Meta has not confirmed it, and the plans may change or never launch. Price cuts sometimes reflect genuine efficiency gains rather than competitive desperation, and xAI's cut arrived alongside real capability improvements. Anthropic and OpenAI hold meaningful advantages in model quality and in deep enterprise relationships, and they may successfully differentiate on capability rather than match on price. Finally, PCM remains a pre-Alpha prototype. Our Alpha demonstration is expected in September, and every performance claim we make about it is limited to what we have measured in our own testing.

The bottom line

Flagship model prices are falling while the revenue requirements behind the industry's compute commitments keep rising. The two companies that dominate AI revenue must roughly double their sales every year, even as newer competitors, subsidized by advertising cash flow and personal fortunes, cut prices beneath them. Falling prices and rising revenue requirements move in opposite directions.

As always, thank you for your continued support.

Charles

*Neurpac’s power efficiency projections are based on prototype testing and theoretical modeling. Actual results may vary significantly from these estimates. Statements about potential revenue or commercial success are forward-looking and involve risks and uncertainties. Actual results may differ materially from any projections.

**The PCM technology is still in development, and there are substantial technical risks that could prevent us from achieving these efficiency gains at scale. Competitive advantages in technology are often temporary, and competitors may develop alternative approaches that match or exceed our efficiency claims. Market adoption of power-efficient AI is not guaranteed, and regulatory, technical, or economic factors could impact the viability of our approach. This technology has not been validated in large-scale commercial deployments, and significant engineering challenges remain before commercial release. Investors should consider this a high-risk, early-stage technology investment with uncertain outcomes.

This update contains forward-looking statements, including statements regarding industry pricing dynamics, competitor economics, market developments, product timelines, and expected performance. These statements are based on current expectations and third-party press reports and involve risks and uncertainties that could cause actual results to differ materially. Figures attributed to third parties have not been independently verified by Atombeam. Statements regarding PCM reflect prototype testing only and are not guarantees of commercial performance. Atombeam undertakes no obligation to update these statements. A companion source-notes document accompanies this update.

This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view the Offering Circular and Related Risks.

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Here’s a nice change of scenery…

I visited London to meet up with our Chief Product Officer, Julien Dersy, to pitch to about 70 family offices (they were very engaged with what we had to say). It was a busy and exciting time, but we took a few minutes to record a video message to you all – because we don’t get to see each other in real life all that often.

Our dispatch from overseas:

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More to come, as we’re really on a roll here. We believe our investors are excited to hear about this. We’ve got a lot of momentum right now, and we’re not slowing down anytime soon.

Thanks for following along.

Charles

[Explore the Investment]

This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view the Offering Circular and Related Risks.

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