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An aerial view of wildfire of Tatkin Lake in British Columbia, Canada on July 10, 2023.

BC Wildfire Service | Anadolu Agency | Getty Images

Record high temperatures and a record fire season are hitting Canada at the same time this summer, leading to an unprecedented combination of heat, fire and dangerous smoke plumes.

“I can’t emphasize enough just how terrifying this moment is on our planet. With global temperature records breaking and fires and floods raging around the world, our house is truly on fire,” Kristina Dahl, principal climate scientist at the Union of Concerned Scientists, told CNBC.

Climate change, caused by greenhouse gas emissions, is making the planet hotter and also increasing the potency of the ingredients that are necessary for wildfires to burn. Even if humans stopped burning all fossil fuels today, the carbon dioxide already in the atmosphere is going to continue heating the planet for decades to come.

“If I had a magic wand and said, ‘no more greenhouse gases being produced from human activities as of now,’ we will continue to warm for 30 to 50 years,” explained Michael Flannigan, the research chair for predictive services, emergency management and fire science at Thompson Rivers University British Columbia.

That means what’s happening now is unprecedented, but it’s also a harbinger of what’s coming.

“This is the new reality, not the new normal, because we’re on a downward spiral,” Flannigan told CNBC.

Record-breaking wildfires with no end in sight

On June 27, Canada surpassed the record set in 1989 for total area burned in one season when it reached 7.6 million hectares, or 18.8 million acres, a communications officer for Natural Resources Canada, told CNBC.

The total has since increased to 9.3 million hectares, or 23 million acres, which is about the size of South Carolina. The average is around 2.2 million hectares, or 5.4 million acres, or about the size of Massachusetts.

“The current wildfire season in Canada has been astounding and record breaking,” Dahl told CNBC.

Soon, the total amount of land burned this year will hit the equivalent of Maine, Flannigan said.

“We’re used to getting fires in the West, or the East, or in the north, or the central — but not the whole country at the same time,” Flannigan told CNBC.

An aerial view of wildfire of Tatkin Lake in British Columbia, Canada on July 10, 2023.

BC Wildfire Service | Anadolu Agency | Getty Images

And the fire season is not even close to over. There are currently 908 active fires burning in Canada, and 576 of those are classified as “out of control,” according to data in a real time dashboard operate by the Canadian Interagency Forest Fire Centre as of 2:15pm EST on Thursday.

“I’m not sure where we’re going to end up with this because it keeps keeps on burning,” Flannigan told CNBC. “Some of these fires are huge. And they will burn all summer, all fall, and some of them will burn through winter. Underground they smolder and even though you can have snow on top, they keep burning underground. And then spring, the snow melts, stuff gets hot, dry and windy. They pop to the surface and start spreading again.”

Record heat turns vegetation into kindling

Earlier in July, the Earth recorded its hottest average day since records began — then repeated the feat three times in four days.

Temperatures in Canada are no exception. Earlier this year, Fort Good Hope, at about 66 degrees north latitude in the Northwest Territories, reached 37.4 degrees Celsius — more than 99 degrees Fahrenheit — setting a record for the warmest Canadian temperature at that latitude, according to the Canadian government. Subsequent readings in nearby communities were even hotter, according to news reports.

“We’re in uncharted waters here,” Dahl told CNBC.

“Since May we’ve seen a pattern of heat domes developing in parts of North America,” Dahl told CNBC. A heat dome is a weather event that occurs when the atmosphere traps hot air like a lid or a cap, as the National Oceanic and Atmospheric Administration describes it. “These zones of extreme heat tend to persist for long stretches of time — weeks in some cases. The heat dome that developed in May was linked to the development and spread of the fires in Alberta that kicked off the start of Canada’s record-breaking fire season.”

“I’ve never seen it start so early that far north,” Flannigan told CNBC. Before he started working in academia, Flannigan worked for the Canadian Forest Service for 30-plus years.

Hotter weather dries out vegetation, which serves as fuel for the wildfires.

“The warmer it gets, the atmosphere gets more efficient at sucking the moisture out of the fuels,” Flannigan told CNBC. “It’s not a linear increase, it’s almost exponential.”

Also, warmer temperatures lead to more lightning, Flannigan said. In Canada, about half of wildfires are started by lightning, but they are responsible for 80% to 90% of the land burned, since these areas tend to be remote and harder for firefighters to reach.

A future of more fire and smoke

Three key ingredients for a wildfire spread are fuel, ignition and weather, Sarah Burch, a climate change professor at the University of Waterloo and the executive director of the Waterloo Climate Institute, told CNBC.

“While wildfire is a natural feature of healthy ecosystems, climate change affects all three of the factors” that cause wildfires, Burch told CNBC. So, too, does land management. For example, the mountain pine beetle is killing trees and turning them into fuel for wildfires, Burch told CNBC. And long-duration droughts also make forests more flammable.

“This means that we expect fires to increase in frequency and intensity in the future,” Burch told CNBC.

People will have to learn to live alongside those wildfires.

Smoke from wildfires in Canada shrouds the Empire State Building on June 30, 2023 in New York City.

David Dee Delgado | Getty Images

“This is a common misconception of people that fire management can stop all fires all the time. Obviously, that’s not true,” Flannigan said.

If firefighters arrive when a fire is still small, they can put it out. But sometimes a fire can balloon into a high-intensity blaze in as little as 15 minutes. When a wildfire becomes a “crown fire,” meaning it jumps from tree top to tree top, “the horse has left the barn,” Flannigan told CNBC. “It’s too late. You’ve missed your window.”

Some fire mitigation techniques can work to slow the back end of a fire that’s already burning at full intensity, but when “that head is just racing across the landscape, you just have to get out of the way.”

This means more smoke from these wildfires traveling to other parts of the globe, too. Earlier in July, wildfire smoke from Canada blanketed much of the United States mid-west and Eastern seaboard.

There is no silver bullet to solving this problem, Flannigan says. Drones and artificial intelligence can help scientists track and monitor fire movement, but they are tools, not solutions. The only long-term solution is to reduce greenhouse gas emissions on a global scale to mitigate the effects of climate change.

“I think there’s still time if we get our act together as a global society to deal with this. And sometimes people need a bloody nose or two before we change our behavior. We can change. And I’m hoping that we’re getting the bloody noses and now we’ll actually do something about fossil fuels,” Flannigan said.

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Anthropic reportedly preparing for one of the largest IPOs ever in race with OpenAI: FT

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Anthropic reportedly preparing for one of the largest IPOs ever in race with OpenAI: FT

Nurphoto | Getty Images

Anthropic, the AI startup behind the popular Claude chatbot, is in early talks to launch one of the largest initial public offerings as early as next year, the Financial Times reported Wednesday. 

For the potential IPO, Anthropic has engaged law firm Wilson Sonsini Goodrich & Rosati, which has previously worked on high-profile tech IPOs such as Google, LinkedIn and Lyft, the FT said, citing two sources familiar with the matter.

The start-up, led by chief executive Dario Amodei, was also pursuing a private funding round that could value it above $300 billion, including a $15 billion combined commitment from Microsoft and Nvidia, per the report. 

It added that Anthropic has also discussed a potential IPO with major investment banks, but that sources characterized the discussions as preliminary and informal. 

If true, the news could position Anthropic in a race to market with rival ChatGPT-maker OpenAI, which is also reportedly laying the groundwork for a public offering. The potential listings would also test investors’ appetite for loss-making AI startups amid growing fears of a so-called AI bubble. 

However, an Anthropic spokesperson told the FT: “It’s fairly standard practice for companies operating at our scale and revenue level to effectively operate as if they are publicly traded companies,” adding that no decisions have been made on timing or whether to go public.

CNBC was unable to reach Anthropic and Wilson Sonsini, which has advised Anthropic for a few years, for comment. 

According to one of the FT’s sources, Anthropic has been working through internal preparations for a potential listing, though details were not provided. 

The FT report follows several notable changes at the company of late, including the hiring of former Airbnb executive Krishna Rao, who played a key role in the firm’s 2020 IPO.

CNBC also reported last month that Anthropic was recently valued to the range of $350 billion after receiving investments of up to $5 billion from Microsoft and $10 billion from Nvidia. 

In its race to overtake OpenAI in the AI space, the startup has also been expanding aggressively, recently announcing a $50 billion AI infrastructure build-out with data centers in Texas and New York, and tripling its international workforce.

According to the FT report, investors in the company are enthusiastic about Anthropic’s potential IPO, which could see it “seize the initiative” from OpenAI.

While OpenAI has been rumoured to be considering an IPO, its chief financial officer recently said the company is not pursuing a near-term listing, even as it closed a $6.6 billion share sale at a $500 billion valuation in October.

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We’re raising our CrowdStrike price target following a beat and raise quarter

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We're raising our CrowdStrike price target following a beat and raise quarter

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Okta shares fall as company declines to give guidance for next fiscal year

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Okta shares fall as company declines to give guidance for next fiscal year

Cheng Xin | Getty Images

Okta on Tuesday topped Wall Street’s third-quarter estimates and issued an upbeat outlook, but shares fell as the company did not provide guidance for fiscal 2027.

Shares of the identity management provider fell more than 3% in after-hours trading on Tuesday.

Here’s how the company did versus LSEG estimates:

  • Earnings per share: 82 cents adjusted vs. 76 cents expected
  • Revenue: $742 million vs. $730 million expected

Compared to previous third-quarter reports, Okta refrained from offering preliminary guidance for the upcoming fiscal year. Finance chief Brett Tighe cited seasonality in the fourth quarter, and said providing guidance would require “some conservatism.”

Okta released a capability that allows businesses to build AI agents and automate tasks during the third quarter.

CEO Todd McKinnon told CNBC that upside from AI agents haven’t been fully baked into results and could exceed Okta’s core total addressable market over the next five years.

“It’s not in the results yet, but we’re investing, and we’re capitalizing on the opportunity like it will be a big part of the future,” he said in a Tuesday interview.

Revenues increased almost 12% from $665 million in the year-ago period. Net income increased 169% to $43 million, or 24 cents per share, from $16 million, or breakeven, a year ago. Subscription revenues grew 11% to $724 million, ahead of a $715 million estimate.

For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts forecast $738 million in revenues and EPS of 84 cents for the fourth quarter.

Returning performance obligations, or the company’s subscription backlog, rose 17% from a year ago to $4.29 billion and surpassed a $4.17 billion estimate from StreetAccount.

This year has been a blockbuster period for cybersecurity companies, with major acquisition deals from the likes of Palo Alto Networks and Google and a raft of new initial public offerings from the sector.

Okta shares have gained about 4% this year.

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