OpenAI's Revenue Surges to $70B, IPO Plans on Hold

OpenAI is closing in on $70 billion in annualized revenue after enterprise sales more than doubled since July. Consumer revenue grew faster in the third quarter than all of last year. Both OpenAI and Anthropic are preparing for potential IPOs, though OpenAI said it will not go public this year due to safety concerns. Anthropic, meanwhile, outlined a vision in its IPO prospectus where AI reshapes the global economy more than industrialization and electricity.

Palo Alto Networks is riding a wave of demand for AI security. Agentic traffic on its SASE platform increased 9x over the past nine months as autonomous AI systems became more common. Network and AI Security revenues reached $8.35 billion in fiscal 2026, up 17% year over year. The company displaced legacy providers in nearly 100 accounts worth over $400 million, but shares have rallied 112.4% year to date and trade at a forward price-to-sales ratio of 22.09X.

Palantir Technologies is approaching a milestone where commercial revenues make up nearly half of total sales, with over $1.2 billion in free cash flow in Q2 2026. However, research firm Gartner warned that Palantir's strategy of embedding software engineers into customer environments to build AI applications may become a costly trap as more companies copy the approach. Palantir stock has gained 5 percent in 2026.

Investor Steve Eisman, known for predicting the 2008 financial crisis, warned that Enron-style tactics are appearing in the AI trade. He drew comparisons between past corporate fraud practices and current market behavior involving companies like Meta, Oracle and Nvidia. His remarks add a note of caution to a sector that has seen explosive growth across the board.

On the regulatory front, China has already built an extensive AI oversight system covering data quality, user privacy, transparency, algorithm filing and risk assessment. US tech leaders including Anthropic CEO Dario Amodei and OpenAI's Sam Altman are calling for global AI governance rules, but China's approach is considered mature and differs from the US market-led model. India's Finance Minister Nirmala Sitharaman also called for greater investment in AI and quantum infrastructure, though without specific funding commitments.

Connecticut passed the CART Act, a 39-section law covering AI chatbots, youth social media rules and employment decisions. Companies using AI in hiring must have a disclosure framework in place by October 1, 2027. Separately, Capytech is offering free AI training to organisations in Cambridge and Peterborough through its new AI Academy, starting with a short course on using AI safely at work.

Hikvision launched Hik-Connect 7, a major update to its cloud-based security software featuring the HIKO AI engine. The engine works directly in the cloud without extra hardware and powers three new features: AI Guardian, AI Search and AI Assistant. The update is rolling out globally to both Team Mode and Personal Mode users.

In the data services space, Innodata's first-half 2026 revenues surged 56.1% year over year to $182.2 million, with management expecting at least 40% revenue growth for the year. ExlService offers greater scale with first-half revenues of roughly $1.17 billion and data and AI-led revenues representing 61% of second-quarter revenues. Both companies are benefiting from rising enterprise spending on AI and data services.

Gartner's warning about Palantir's sales strategy also applies more broadly to the AI industry. As more companies embed engineers into client environments to build AI applications, the cost and sustainability of this model is coming under scrutiny. Palantir's approach helped drive strong commercial growth, but whether it remains viable at scale is now a key question for investors.

Key Takeaways

<ul><li>OpenAI's annualized revenue run rate is approaching $70 billion after enterprise sales more than doubled since July.</li><li>Both OpenAI and Anthropic are preparing for potential IPOs, though OpenAI said it will not go public this year due to safety concerns.</li><li>Palo Alto Networks' agentic traffic on its SASE platform increased 9x over the past nine months as autonomous AI systems became more common.</li><li>Palo Alto Networks Network and AI Security revenues reached $8.35 billion in fiscal 2026, up 17% year over year, but shares trade at a forward price-to-sales ratio of 22.09X.</li><li>Gartner warned that Palantir's strategy of embedding software engineers into customer environments to build AI applications may become a costly trap.</li><li>Investor Steve Eisman warned that Enron-style tactics are appearing in the AI trade involving companies like Meta, Oracle and Nvidia.</li><li>China has already built an extensive AI oversight system covering data quality, user privacy, transparency, algorithm filing and risk assessment.</li><li>Connecticut's CART Act requires companies using AI in hiring to have a disclosure framework in place by October 1, 2027.</li><li>Innodata's first-half 2026 revenues surged 56.1% year over year to $182.2 million, while ExlService reported first-half revenues of roughly $1.17 billion.</li><li>Hikvision launched Hik-Connect 7 featuring the HIKO AI engine, which works in the cloud without extra hardware and powers AI Guardian, AI Search and AI Assistant.</li></ul>

Palantir vs Coherent AI stock comparison

Palantir Technologies and Coherent Corp. are both major players in AI and data infrastructure. Palantir's commercial revenues are approaching half of total sales, with strong margins and over $1.2 billion in free cash flow in Q2 2026. Coherent's Datacenter and Communications segment generated nearly 79% of Q4 fiscal 2026 revenues, surging 58.6% year over year. Both companies show strong profitability but differ in their AI market positioning.

Innodata vs ExlService AI stock comparison

Innodata and ExlService are both benefiting from rising enterprise spending on AI and data services. Innodata's first-half 2026 revenues surged 56.1% year over year to $182.2 million, with management expecting at least 40% revenue growth for the year. ExlService offers greater scale with first-half revenues of roughly $1.17 billion and data and AI-led revenues representing 61% of second-quarter revenues. Innodata grows faster while ExlService provides more diversification and a lower valuation.

Palo Alto Networks AI security growth

Palo Alto Networks is seeing growing demand for network security as companies expand AI infrastructure. Agentic traffic on PANW's SASE platform increased 9x over the past nine months as autonomous AI systems became more common. Network and AI Security revenues increased 17% year over year to $8.35 billion in fiscal 2026. PANW expects these revenues to grow at a low-double-digit rate in fiscal 2027.

Palo Alto Networks earnings and valuation update

Palo Alto Networks Network and AI Security revenues reached $8.35 billion in fiscal 2026, up 17% year over year. Software firewall ARR increased 29% in Q4 and PANW displaced legacy providers in nearly 100 accounts worth over $400 million. Shares of PANW have rallied 112.4% year to date and trade at a forward price-to-sales ratio of 22.09X. The company currently carries a Zacks Rank 3 Hold rating.

OpenAI revenue nears $70 billion

OpenAI's annualized revenue run rate is approaching $70 billion after enterprise sales more than doubled since July. The growth is driven by increasing demand for OpenAI's products and services in the enterprise sector. The company appears on track to meet its revenue targets for the year.

OpenAI Revenue Nears $70 Billion as Enterprise Sales Surge

OpenAI is on track to generate nearly $70 billion in annualized revenue. Business-to-business sales more than doubled, and consumer revenue grew faster in the third quarter than all of last year. Both OpenAI and Anthropic are preparing for potential IPOs, though OpenAI said it will not go public this year due to safety concerns.

Anthropic IPO Prospectus Outlines AI's Global Economic Impact

Anthropic reviewed its IPO prospectus with Reuters. The document describes a future where AI reshapes the global economy more than industrialization and electricity. The company is moving forward with its public listing plans while rival OpenAI delays its own IPO plans.

India Urges More Investment in AI and Quantum Infrastructure

India's Finance Minister Nirmala Sitharaman called for greater investment in AI and quantum technology infrastructure. She emphasized cooperation between universities, businesses and investors. However, the remarks did not include new funding or a specific timetable for quantum investment.

Connecticut Passes New AI and Data Privacy Laws for Businesses

Connecticut passed the CART Act, a 39-section law covering AI chatbots, youth social media rules and employment decisions. Parts of the law took effect immediately, while additional sections start October 1. Companies using AI in hiring must have a disclosure framework in place by October 1, 2027.

Investor Steve Eisman Warns of Enron-Style Tactics in AI Market

Steve Eisman, the investor known for predicting the 2008 financial crisis, says tricks similar to those used by Enron are appearing in the AI trade. He drew comparisons between past corporate fraud practices and current market behavior in the AI sector involving companies like Meta, Oracle and Nvidia.

China already has extensive AI rules while US leaders push for global standards

US tech leaders like Anthropic CEO Dario Amodei and OpenAI's Sam Altman are calling for global AI governance rules. They want independent evaluators, regulation, and global agreements especially with China. However, China has already built a large system of AI oversight. China's rules cover data quality, user privacy, transparency, algorithm filing, and risk assessment for AI services. The framework also addresses dangerous AI applications and autonomous systems. A thinktank analysis notes China's approach is mature and differs from the US market-led model.

Hikvision launches HIKO AI engine in Hik-Connect 7 security software upgrade

Hikvision announced Hik-Connect 7, a major update to its cloud-based security software. The upgrade introduces HIKO, an AI engine that works directly in the cloud without extra hardware. HIKO powers three new features: AI Guardian, AI Search, and AI Assistant. These features help users monitor activity, search video footage, and manage devices using natural language. The update is rolling out globally to both Team Mode and Personal Mode users.

Gartner warns Palantir's AI sales strategy may be a costly trap

Palantir Technologies created a sales strategy that embeds software engineers directly into customer environments to build AI applications. Many companies are now copying this approach. However, research firm Gartner warned that this method may not meet expectations and could become expensive. Palantir stock has gained 5 percent in 2026. The warning came in a report released on Tuesday.

Capytech offers free AI training pilot for organisations in Cambridge and Peterborough

Capytech is providing free access to its new AI Academy for the first organisations in the Cambridge and Peterborough area. Staff begin with the AI Licence, a short course focused on using AI safely at work. In return, Capytech asks participants for honest feedback about the training. This pilot program aims to help local organisations build basic AI skills.