AI Growth, Investor Buzz, and Global Ambitions

6th August 2025

OpenAI is considering a $500 billion valuation through a secondary share sale, allowing employees to cash out amid rapid growth in ChatGPT usage and revenue. Match Group beat Q2 expectations with $864 million in revenue and is leaning on AI innovation to better attract Gen Z users, despite a drop in paying subscribers. UK startup Skyrora became the first domestic company to receive a space launch license, though launch delays may push activity abroad. AMD topped revenue expectations but missed on earnings due to export restrictions impacting AI chip sales. Still, strong demand in gaming and data center chips continues to drive growth. Palantir raised its full-year revenue forecast as AI demand soars, though analysts remain cautious about its steep valuation. All in today’s Read It and Eat !

Major Headlines 

OpenAI Considers $500 Billion Valuation in Employee Share Sale

OpenAI, the company behind ChatGPT, is exploring a potential stock sale that could let employees cash out and it's a big one. According to a source familiar with the matter, the deal could value the company at around $500 billion, a major leap from its already impressive $300 billion valuation. While discussions are still in the early stages, the move highlights not just OpenAI’s soaring user base and revenue growth, but also how fierce the AI talent race has become.

The planned transaction, which would take place before any IPO, would allow both current and former employees to sell several billion dollars’ worth of shares. Backed by Microsoft, OpenAI has been gaining momentum fast. Its flagship product, ChatGPT, now boasts about 700 million weekly active users, up from 400 million just a few months ago. On the business side, revenue has doubled in the first half of the year, with projections suggesting it could hit a $20 billion annual run rate by the end of the year.

This employee share sale follows OpenAI’s earlier $40 billion primary funding round, led by SoftBank, which has committed up to $22.5 billion and has until year’s end to fund it. The remaining portion of the round has already been filled at the $300 billion mark. At the same time, companies like Meta are offering enormous compensation packages in a bid to recruit AI talent even targeting Scale AI CEO Alexandr Wang for a key leadership role in their new superintelligence division.

OpenAI’s potential restructuring may pave the way for a future IPO, moving it away from its current capped-profit model. While there's no fixed timeline, CFO Sarah Friar mentioned back in May that the company would only go public when both it and the broader market are ready. Existing investors, including Thrive Capital, are reportedly considering taking part in the employee share sale a sign of continued confidence in OpenAI’s long-term growth. Reuters 

Match Group Beats Expectations, Leans Into AI to Woo Gen Z

Match Group, the parent company of Tinder, posted stronger-than-expected second-quarter revenue this week, a sign that its new leadership and AI-driven strategy may be starting to pay off. The company brought in $864 million for the quarter, topping Wall Street estimates of $853.6 million. Shares jumped around 10% in after-hours trading following the announcement.

Under new CEO Spencer Rascoff, Match has doubled down on product innovation and user experience. A key part of that shift is the introduction of an AI-powered discovery algorithm, which aims to improve how users are matched. Analysts, including M Science’s Chandler Willison, say early signs of improvement in recommendations and user interactions are encouraging.

Still, challenges remain. The number of paying users dipped by 5% to 14.1 million, reflecting ongoing pressures across the dating app industry. Like rival Bumble, Match has been grappling with user fatigue, inflation, and a general sense that dating apps haven’t evolved much in recent years. In response, both companies are prioritizing smarter features like AI-powered discovery over simply growing user counts.

Looking ahead, Match is repositioning Tinder with Gen Z in mind, aiming to create a more relaxed, serendipitous vibe on the app. The company also plans to reinvest about $50 million in the second half of 2025 into strategic initiatives including testing new Tinder features and expanding Hinge, Azar, and The League into new regions. For Q3, Match forecasts revenue between $910 million and $920 million, again beating analyst expectations. Yahoo.Finance 

UK Approves Space Launch Licence for Scottish Rocket Startup Skyrora

The UK has taken a major step toward becoming a spacefaring nation by granting its first-ever space launch licence to a domestic rocket company. Scottish startup Skyrora is now officially cleared by the Civil Aviation Authority (CAA) to conduct vertical launches potentially up to 16 per year  from the SaxaVord Spaceport in the Shetland Islands, pending further approvals.

Skyrora, founded in 2017, is eager to make its first launch from British soil. However, despite having both a launch-ready vehicle and regulatory green light, the company faces delays. SaxaVord has reportedly told Skyrora that there’s no launch slot available in 2025, pushing the firm to explore alternative sites in Australia, Oman, and possibly Iceland.

“This licence marks a huge milestone, not just for Skyrora but for the UK space sector as a whole,” said CAA Chief Executive Rob Bishton. Skyrora’s CEO Volodymyr Levykin echoed the sentiment, reaffirming the company’s commitment to launching from the UK, even as it considers temporary alternatives abroad.

The UK space industry employs over 45,000 people and produces more satellites than any country except the U.S. A successful vertical launch from SaxaVord  especially after the failed horizontal launch in Newquay last year  could reinvigorate Britain’s ambitions in the booming global space market, projected to exceed $1 trillion by 2030. Skyrora still needs to meet several requirements, including insurance, data-sharing agreements, and international airspace approvals, before liftoff becomes a reality. Bloomberg 

AMD Beats Revenue Estimates But Misses on Earnings, Shares Slip

AMD delivered its second-quarter earnings this week, with revenue topping expectations but earnings per share coming in just below estimates. The company reported adjusted earnings of 48 cents per share, slightly under the 49 cents analysts had anticipated, while revenue reached $7.69 billion, beating forecasts of $7.42 billion. Despite the revenue beat, AMD shares dropped around 5% in after-hours trading. For the third quarter, the company expects revenue to land between $8.4 billion and $9 billion, ahead of Wall Street's $8.3 billion projection.

While Nvidia continues to dominate the AI chip market, AMD is steadily gaining traction as a competitive alternative. Its upcoming AI chip, the Instinct MI400, is set to launch next year, with OpenAI’s Sam Altman already pledging support. CEO Lisa Su highlighted that seven of the top ten AI companies are now using AMD’s Instinct chips. However, export restrictions to China on AMD’s MI308 chip impacted revenue significantly, costing the company an estimated $800 million in Q2. AMD is awaiting U.S. government approvals for waivers, but its current guidance does not include potential China sales.

The company’s data center segment covering both CPUs and GPUs generated $3.2 billion in revenue, up 14% year-over-year. AMD noted growing demand for its server CPUs, which are playing a key role in powering AI infrastructure. The Client and Gaming segment also saw strong momentum, rising 69% to $3.6 billion. Demand for AMD’s new Ryzen Zen 5 desktop CPUs boosted client revenue by 57%, while gaming revenue soared 73% to $1.1 billion, driven by sales of gaming GPUs and custom console chips.

Despite AI momentum, AMD is navigating some cost pressures. The company reported a gross margin of 43% lower than the 54% it would have reached without the hit from export controls. Still, Lisa Su remains optimistic about the company’s long-term AI prospects, emphasizing partnerships and growing interest from major tech players. With multiple product launches ahead and a strategic push into AI, AMD continues to position itself as a key player in the next wave of computing innovation. CNBC 

Palantir Rides AI Boom to Boost Forecast and Shares Surge

Palantir Technologies is enjoying a serious growth streak. The data analytics and defense software firm saw its shares jump nearly 9% in early Tuesday trading after it raised its full-year revenue forecast for the second time this year. What’s powering the optimism? Soaring demand for its AI-driven services from both governments and businesses.

Long known for its deep ties to U.S. defense and intelligence agencies, Palantir is rapidly expanding its reach. It's becoming a key AI player across the board, not just in government circles. "Palantir isn't just a government vendor anymore  it's becoming an indispensable partner for enterprises in the AI revolution," said Jacob Falkencrone, Saxo’s global head of investment strategy. With AI spending booming, analysts at Wedbush even see the company on track for a potential trillion-dollar market cap in the next few years. Its market value currently sits at around $379 billion.

The company, co-founded by Peter Thiel and publicly listed in 2020, has been on a contract-winning spree this year. In April, it secured a $30 million deal with U.S. Immigration and Customs Enforcement, and just last week, the U.S. Army indicated it could spend up to $10 billion on Palantir’s services over the next decade. Government contracts drove a 53% jump in U.S. sales to $426 million in Q2 now making up over 42% of the company's nearly $1 billion quarterly revenue.

Still, not everyone’s sold on the hype. While investors are bullish, some analysts are raising eyebrows at the company's sky-high valuation. Palantir currently trades at more than 200 times its 12-month forward earnings, the priciest stock on the S&P 500, far outpacing even Nvidia. Morningstar analysts caution that, while Palantir has undeniable competitive strengths, its valuation is “turning into a difficult-to-justify story.” The company has also flagged a rise in upcoming expenses, including seasonal hiring, a reflection of the growing talent war in AI. Even so, at least eleven brokerages have raised their price targets following the earnings update. CityAM 

Minor Headlines 

• Global Insured Catastrophe Losses Reach $80 Billion in H1 2025, Report Finds. Yahoo.Finance 

• Clay Hits $3.1 Billion Valuation Amid Continued Surge in AI Investment. Reuters 

• Australian Regulator Criticizes YouTube, Others for Ignoring Child Abuse Content. Bloomberg 

• Snap Posts Slowest Revenue Growth in Over a Year Amid Platform Issues, Rising Competition. Bloomberg 

• Elon Musk Says xAI Will Open Source Grok 2 Chatbot. Financial Times 

• Nvidia Reaffirms Chips Are Secure, Opposes US Push for Location Tracking. Reuters 

• Illinois Becomes First U.S. State to Ban AI-Powered Therapy Services Under New Law. New York Times 

• Siemens Energy Aims for Top of 2025 Guidance, Driven by Strong U.S. Demand. Yahoo.Finance 

• Novo Nordisk Flags Ongoing Generic Drug Threat as New CEO Prepares to Step In. Yahoo.Finance