OpenAI’s $500bn valuation, FICO sidesteps Credit Middlemen, Indexes Hit Another ATH, Tesla’s Record Quarter + Much More

3rd October 2025

OpenAI has become the world’s most valuable private company, hitting a $500B valuation after a secondary share sale that let early employees cash out. The deal pushed it past SpaceX and highlighted the growing investor appetite for AI. Meanwhile, FICO is shaking up the credit score market by cutting out Experian, Equifax, and TransUnion, offering lenders cheaper direct access to scores. That shift could save homebuyers money while putting pressure on the credit bureaus’ business model. On Wall Street, stocks closed at fresh records as big tech gains offset uncertainty from the U.S. government shutdown and weak labor data. Tesla also reported record deliveries but investors worry demand may soften now that tax credits have expired. In the UK, the Solicitors Qualifying Exam (SQE) saw its lowest pass rate yet, with just 41% clearing the first stage. The results are fueling fresh criticism of the exam’s difficulty and how it’s being managed. All this in today’s Read It and Eat!

PSA: The Writers of RIAE would be taking a much needed break from the daily news. We however have a trio of special articles to give you something to chew on during the week so keep your eyes out for those next week!

Major News 

• OpenAI Overtakes SpaceX as World’s Most Valuable Private Company

OpenAI has officially taken the crown as the world’s most valuable private company, surpassing Elon Musk’s SpaceX with a fresh $500 billion valuation. The milestone came after a secondary share sale that let long-time employees cash out a portion of their holdings. Roughly $6.6 billion worth of stock changed hands, giving early staffers a reward for sticking with the company during the intense talent wars of the past two years.

The deal catapulted OpenAI past its previous $300 billion valuation and above SpaceX’s $400 billion, cementing its spot at the top. The news also rippled across markets, fueling optimism for AI stocks even as broader uncertainty lingered due to the ongoing U.S. government shutdown.

For employees, the sale was more than just a payday it was validation. Many had turned down lucrative offers elsewhere, including nine-figure pay packages from rivals like Meta, to stay at the ChatGPT-maker. The secondary sale gave them a chance to realize some of that value without waiting for an IPO.

Meanwhile, OpenAI is keeping the momentum going with product rollouts. This week it launched the latest version of Sora, its AI video generator, which has already gone viral for clips ranging from Pokémon reimaginings to surreal street scenes. The company says it has built in guardrails to curb harmful or exploitative content and added tools to help users remove videos of themselves. Still, the app is raising new questions about copyright and content moderation as generative media races into the mainstream. Morning Brew 

• FICO Shakes Up the Credit Score Market

One of the most important numbers in your financial life, the FICO score, is about to be delivered in a whole new way. Fair Isaac, the company behind the score, announced it will start supplying credit scores directly to mortgage lenders, cutting out the middlemen: Experian, Equifax, and TransUnion. That shift sent FICO’s shares soaring more than 18%, while the credit bureaus saw their stocks tumble between 4% and 11%.

Here’s why it matters: until now, the credit bureaus acted as resellers, bundling FICO scores into their reports and passing them on to lenders at a markup. FICO’s new approach offers lenders a flat $10 fee per score, or a $4.95 fee plus $33 if the loan closes. That could cut the cost of an average score pull by as much as 50% potentially translating into real savings for homebuyers navigating an already expensive housing market.

The move also puts regulators on notice. Earlier this year, the Federal Housing Finance Agency accused Fair Isaac of monopolizing the credit score industry and approved the use of VantageScore, a competing model created by the credit bureaus. By undercutting their pricing power, FICO is both strengthening its dominance and addressing some of those regulatory concerns.

In short: this isn’t just an internal industry shake-up. It could ripple out to millions of would-be homeowners, changing how creditworthiness is priced and, ultimately, how much they pay to secure a mortgage. Morning Brew 

• Wall Street Hits Fresh Records as Tech Strength Balances Shutdown Jitters

Wall Street closed at record highs on Thursday, with modest gains across the board as strength in big tech helped offset concerns about the labor market and the ongoing U.S. government shutdown. The Nasdaq led the way with a 0.4% climb, boosted by heavyweights like Nvidia, Apple, and Broadcom, while the S&P 500 and Dow also notched new record closes.

With official government data on hold due to the shutdown, investors turned to private reports for clues on the labor market. Challenger, Gray & Christmas reported fewer layoffs in September, but hiring plans remain at their weakest since 2009. Coupled with a soft ADP report earlier in the week, the data has fueled expectations that the Federal Reserve could cut interest rates twice more this year.

Despite reassurances that shutdowns historically don’t derail markets, uncertainty remains. Analysts warn the political gridlock in Washington could drag things out, leaving investors cautious. “The market is trying to square weak job data with the broader economic outlook, all against the backdrop of a highly polarized political climate,” said Jim Baird of Plante Moran Financial Advisors.

Tech and semiconductor stocks stood out as the session’s biggest winners, with the chip index jumping nearly 2% to a record high. Materials also advanced, while energy lagged behind. Tesla shares tumbled 5% after analysts flagged sales risks, despite a strong delivery report, and Occidental fell after announcing a $9.7 billion asset sale to Berkshire Hathaway. Meanwhile, credit bureaus Equifax and TransUnion slid sharply as FICO rolled out a new credit scoring tool that bypasses traditional reporting. Reuters 

• Tesla Delivers Record Numbers, But EV Demand Faces Post-Tax Credit Test

Tesla just notched record quarterly deliveries, but investors aren’t entirely convinced the momentum will last. The company pulled out all the stops ahead of the U.S. federal EV tax credit expiration, rolling out discounts, financing deals, and even leaning on Musk’s favorite channel, social media, to drive sales. The strategy worked: Tesla delivered 497,099 vehicles in Q3, blowing past Wall Street’s forecast of 443,919. Most of those were the Model 3 and Model Y, with China sales helping offset weaker performance in Europe.

Still, analysts warn the rush may have been more about locking in incentives than growing underlying demand. “I’m skeptical this will be sustainable and we could see a soft couple of quarters,” said Elliot Johnson, CIO of Evolve ETFs. Investors seemed to agree Tesla’s stock slid 3.4% despite being up nearly 14% for the year. Lease prices are already climbing post-credit, even though sticker prices haven’t changed.

The company now faces a tougher road ahead. Tesla needs nearly 390,000 deliveries in Q4 to hit its 2025 projection of 1.61 million, about 10% lower than last year. Rivals are also tightening the competition: Rivian raised its delivery numbers thanks to buyers rushing for credits, while Chinese EV makers and European plug-in hybrids are gaining ground.

Longer term, much rides on Tesla’s ability to scale down its lineup. A stripped-down Model Y expected to be about 20% cheaper to produce is planned to hit the U.S. in 2026, with output potentially ramping to 250,000 units annually. Analysts say that model will be critical in keeping Tesla’s momentum alive in a post-subsidy market. In the meantime, Musk continues to pitch Tesla as more than just an automaker, leaning on AI-driven self-driving, robotaxis, and humanoid robots to keep the narrative and the stock charged up. Reuters 

• Three in Five Students Fail SQE1 Amid Mounting Criticism of the Exam

The Solicitors Qualifying Exam (SQE) just hit a new low point. Only 41% of candidates passed the July sitting of SQE1, meaning nearly three in five fell short. Out of almost 6,000 students who sat the exam, around 2,400 passed. That’s down from 44% last July and well below the 56% seen in both January sittings of 2024 and 2025. By contrast, SQE2 continues to see much higher success rates 82% in its latest sitting but of course, only those who clear SQE1 can even attempt it.

The Solicitors Regulation Authority (SRA) said the drop largely reflects a weaker cohort this time around. In particular, 19% of July candidates were re-sitters, who historically perform worse. That compares with 17% last July and as low as 8% and 12% in the January exams. The SRA stressed that the pass standard hasn’t changed, even if outcomes have.

Still, the numbers are reigniting criticism of the exam’s structure and difficulty. A student petition over the summer argued the SQE is “disproportionately difficult” and harmful to candidates’ wellbeing, though former Home Secretary Suella Braverman dismissed those complaints as snowflakery. At the same time, regulators within the profession are calling for more transparency: Legal Services Board CEO Richard Orpin recently pressed the SRA to publish provider-level data so students can make better-informed choices.

Kaplan, which runs the exam, hasn’t helped its own case either. Just last week it had to apologize after mistakenly telling more than 230 SQE2 candidates that their exams had been canceled. For students already under pressure, it’s another reminder that the SQE isn’t just tough to pass, it's becoming increasingly contentious in how it’s run. Non-Billable

Minor News 

• Munich Airport suspends flights after drone sightings. CNBC 

• Car attack and stabbing near Manchester synagogue leaves two dead on Yom Kippur, the holiest day on the Jewish calendar. CNBC 

• Gold prices forecast to surpass $4,000. Yahoo.Finance 

• Berkshire Hathaway to acquire Occidental Petroleum’s chemical unit for $9.7B, its biggest deal since 2022. CityAM 

• KKR’s Alisa Wood: “There are more private equity funds in the U.S. than McDonald’s”. BBC 

• African stocks break into global top 20 on reforms and softer dollar. Bloomberg 

• Apple pulls ICE tracking apps following DOJ pressure. CNBC 

• OpenAI’s Sora 2 faces safety and censorship scrutiny as ultra-realistic videos debut. CNBC 

Earnings 

Consumer & Retail

• Nike — Beat Q1 estimates on stronger-than-expected sales growth; turnaround progress under new CEO. Weakness in China (-9% revenue) and forecast for holiday-quarter sales decline. CNBC 

Financials

• Jefferies — Beat Q3 profit estimates, marking its best Q3 ever. Strength came from record advisory fees, M&A rebound, robust trading, and optimism for capital markets. Bloomberg 

Travel & Leisure

• Carnival — Beat Q3 earnings and revenue estimates, delivering its tenth-straight record quarter. Driven by strong bookings, higher onboard spending, and ticket price gains. Raised FY profit guidance for the third time this year on record customer deposits and strong demand. Bloomberg