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IPO is not on the cards right now: OpenAI CFO

Mohammed Fahad
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IPO is not on the cards right now: OpenAI CFO
  • Company’s current focus is on scaling operations following a significant corporate overhaul last month.

OpenAI’s Chief Financial Officer, Sarah Friar, tempered expectations for an initial public offering, telling attendees at The Wall Street Journal’s Tech Live conference that an IPO is not in the company’s near-term roadmap.

“IPO is not on the cards right now,” Friar stated. “We are continuing to get the company into a state of constantly stepping up into the scale we are at, so I don’t want to get wrapped around an IPO axle.”

While Friar has privately indicated that OpenAI might pursue a public listing as early as 2026 or 2027, her remarks underscore the company’s current focus on scaling operations following a significant corporate overhaul last month.

Strategic restructuring and Microsoft deal

In late October, OpenAI restructured its for-profit arm as a public benefit corporation, part of a deal with Microsoft that valued the artificial intelligence leader at approximately $500 billion. This transition affords OpenAI additional operational flexibility while maintaining majority control under its nonprofit parent, now known as the OpenAI Foundation.

The Foundation holds a 26 per cent stake and a warrant for additional equity tied to performance milestones, potentially paving the way for future financing and strategic partnerships.

Investment and expansion

OpenAI has aggressively expanded its investment in data centres and infrastructure, recently signing multibillion-dollar agreements with major tech players including Alphabet’s Google and Amazon.

The company is seeking US government support to help back AI chip financing, a move Friar said could reduce debt costs for assets that rapidly depreciate.

“This is where we’re looking for an ecosystem of banks, private equity, maybe even governmental,” Friar explained. “Any such guarantee can really drop the cost of the financing but also increase the loan-to-value.”

Arm Holdings beats third-quarter expectations on AI surge

Ana Mary Joseph
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Arm Holdings beats third-quarter expectations on AI surge
  • CEO Rene Haas attributes bullish outlook to rising demand for Arm’s Compute Subsystems products, which offer more complete chip designs and higher royalty rates.
  • Company is assembling new engineering teams to bring these “physical embodiments” of its CSS designs to market.

UK-based chip technology provider Arm Holdings issued a fiscal third-quarter forecast that exceeded Wall Street expectations, propelled by booming demand for artificial intelligence (AI) computing. Following the report, Arm shares jumped 5 per cent in after-hours trading before retreating slightly to finish up about 3 per cent.

Arm projected revenue of $1.23 billion at the midpoint of its current−quarter guidance, outpacing the average analyst estimate of $1.1 billion.

CEO Rene Haas attributed the bullish outlook to rising demand for Arm’s Compute Subsystems (CSS) products, which offer more complete chip designs and higher royalty rates. The growing adoption of CSS by customers and an industry-wide spike in AI investments were instrumental in the positive forecast.

“When we think about what’s going on with Arm in the data centre, we then kind of go back to all of this demand for AI compute—the bottleneck is power. That’s a good thing for us,” Haas said.

For the just-ended second fiscal quarter, Arm reported a 34 per cent revenue increase to $1.14 billion. Adjusted earnings hit 39 cents per share, above the expected 33 cents. Royalty revenue jumped 21 per cent to $620 million, while licensing revenue rose 56 per cent to $515 million, fueled by the timing of major contracts.

Arm’s energy-efficient designs—favoured in smartphones, data centres, and automotive markets—are gaining traction as the industry faces mounting power constraints in AI processing. Google uses Arm’s architecture in its Axion processors, delivering 60 per cent better energy efficiency than comparable Intel and AMD chips, Haas noted.

Expanding beyond IP licensing 

Historically, Arm has generated income through licensing its semiconductor designs and collecting royalties for every chip produced using its architecture. Its technology underpins nearly every smartphone worldwide and is increasingly present in data centres, with Arm expecting its CPUs to power nearly half of top “hyperscaler” deployments by 2025.

Last quarter, Arm revealed strategic plans to reinvest profits in developing its own chips—a notable shift from its traditional intellectual property business model. The company is assembling new engineering teams to bring these “physical embodiments” of its CSS designs to market.

Haas indicated progress in this new direction: “Arm had ‘inched a little bit further—relative to continuing to explore’ making its own chips.”

Apple to leverage Google’s advanced AI to bolster Siri

Ana Mary Joseph
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Apple to leverage Google’s advanced AI to bolster Siri
  • Apple aims to close the technology gap between Siri and rival assistants.
  • By deploying Gemini’s powerful model, Apple is expected to improve Siri’s understanding and functionality, though integration as a chatbot and Google’s AI-powered search will remain outside Apple’s ecosystem.

Apple is close to finalising a deal to use a cutting-edge artificial intelligence model from Google parent Alphabet to enhance its Siri voice assistant.

The agreement, reportedly valued at about $1 billion annually, will give Apple access to Google’s 1.2 trillion-parameter Gemini AI model, marking a significant step as Apple aims to close the technology gap between Siri and rival assistants.

Sources told Bloomberg the deal will act as a stopgap, enabling Apple to roll out more advanced Siri features while the company works on developing its own sophisticated AI systems. The proposed partnership follows a recent internal review and evaluation of Google’s AI capabilities.

Siri’s reinvention

Historically, Siri has lagged competitors like Amazon’s Alexa and Google Assistant, particularly in managing complex, multi-step requests and integrating with third-party applications.

By deploying Gemini’s powerful model, Apple is expected to improve Siri’s understanding and functionality, though integration as a chatbot and Google’s AI-powered search will remain outside Apple’s ecosystem, analysts noted.

The agreement comes amid broader industry moves to rapidly embed advanced AI into consumer devices. Google integrated Gemini into its assistant in 2024, while Amazon has been rolling out an AI-driven overhaul of Alexa this year. Apple, meanwhile, acknowledged in March that new AI features for Siri would be delayed until 2026, citing unspecified challenges.

To address these setbacks, Apple recently altered its executive structure, placing Mike Rockwell in charge of Siri after CEO Tim Cook lost confidence in AI chief John Giannandrea’s execution.

Qualcomm forecasts strong earnings amid smartphone rebound

Mohammed Fahad
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Qualcomm forecasts strong earnings amid smartphone rebound
  • Qualcomm said it anticipates sales with a midpoint of $12.2 billion and adjusted profit of $3.40 per share.
  • Securities filings show Apple, Samsung, and China’s Xiaomi each still account for over 10% of Qualcomm’s revenue.
  • A significant wave of consumers is upgrading to premium smartphones to leverage AI applications, effectively “hollowing out” the midrange segment, especially in China and India.
  • Qualcomm faces a balancing act between sustaining growth in traditional smartphone chips and capturing new opportunities in AI and automotive sectors, as customer relationships continue to evolve.

US chipmaker Qualcomm reported a robust financial outlook for its upcoming quarter, projecting sales and profits above Wall Street expectations due to a resurgence in premium smartphone demand.

However, the prospect of declining business from key customer Samsung next year sent shares down 2.7 per cent in after-hours trading, erasing some of the day’s nearly 4 per cent gains.

For its current fiscal first quarter ending in December, Qualcomm said it anticipates sales with a midpoint of $12.2 billion and adjusted profit of $3.40 per share.

Qualcomm provides modem chips for smartphones, including a complete share in Samsung Electronics’ latest Galaxy S25 lineup. However, CEO Cristiano Amon revealed the company is preparing for a reduced share—about 75 per cent—in the Galaxy S26, signaling softer future revenues from the Korean electronics giant.

“When you think about Galaxy S26, we’re planning for 75 per cent—that’s what we expect,” Amon told Reuters.

Diversification and market trends

In response to changing dynamics with major clients such as Apple and Samsung, Qualcomm has been diversifying into laptops, automobiles, and data centre chips. Notably, Apple is moving toward building its own modems, shift analysts have been monitoring closely. Securities filings show Apple, Samsung, and China’s Xiaomi each still account for over 10 per cent of Qualcomm’s revenue.

Meanwhile, Amon highlighted on the company’s earnings call that a significant wave of consumers is upgrading to premium smartphones to leverage AI applications, effectively “hollowing out” the midrange segment, especially in China and India.

“You don’t have anything in the middle,” Amon noted. “We continue to see an expansion of the premium tier.”

AI expansion and new clients

Qualcomm announced last month a new line of AI data centre chips, securing Humain—a Saudi-backed AI firm—as a client. Discussions are ongoing with a major “hyperscaler,” Amon confirmed.

“We’re very pleased with the outcome of that conversation,” he said, hinting at further business in the high-growth AI computing sector.

For the fiscal fourth quarter ended September 28, Qualcomm reported revenue of $11.27 billion and adjusted profit of $3 per share. Handset chip revenue climbed 14 per cent year-over-year to $6.96 billion, above Visible Alpha estimates.

Chief Financial Officer Akash Palkhiwala guided for handset revenue to grow at a “low teens” percentage in the fiscal first quarter, implying at least $7.7billion.

Despite concerns regarding client transitions, CEO Amon is confident: “Phones are slowly seeing apps becoming more capable, and that drives people to buy a more capable device, no different than what we saw right after the pandemic,” he said.

China will “win the race” with US in AI: Nvidia CEO

Naushad K. Cherrayil
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China will “win the race” with US in AI: Nvidia CEO
  • Huang argues the West may be undermining itself with internal divisions and regulatory fragmentation
  • While China ramps up support for its tech titans, US and UK firms navigate a maze of emerging compliance mandates that risk dampening innovation.
  • CEO contends that continued lockouts not only risk ceding the global market to others, but also erode dependency on American technology.

In a dramatic assessment of the global artificial intelligence competition, Nvidia’s CEO Jensen Huang has sounded the alarm: China is poised to eclipse the United States in AI advancement, owing to an energy advantage and a more relaxed regulatory climate.

Speaking to the Financial Times at the Future of AI Summit, Huang—whose company now tops the world with a $5 trillion valuation—delivered his most candid prediction yet: “China is going to win the AI race.”

A battle of policy and infrastructure

Huang’s comments come against a backdrop of tightening US export controls that prohibit Nvidia from selling its most advanced AI chips to Chinese buyers. The restrictions, reaffirmed after a high-stakes meeting between President Donald Trump and President Xi Jinping, are intended to safeguard American tech leadership.

However, Huang argues the West may be undermining itself with internal divisions and regulatory fragmentation.

“We need more optimism,” he said, criticising the growing patchwork of state-level AI rules in the US, warning these could splinter technology policy with “50 new regulations.”

By comparison, Huang observed that China’s highly coordinated strategy, including generous power subsidies for data centres, is fueling rapid growth in homegrown AI capabilities. “Power is free,” he noted, pointing to China’s ability to make domestic AI compute vastly more affordable—even as local chips from Huawei and Cambricon remain less energy efficient than Nvidia’s.

Regulatory risks

The contrast is stark: while China ramps up support for its tech titans—including ByteDance, Alibaba, and Tencent—through increased energy subsidies, US and UK firms navigate a maze of emerging compliance mandates that risk dampening innovation.

Huang has previously warned that American AI models are only marginally ahead of those produced by Chinese groups, urging Washington to loosen market restrictions. The CEO contends that continued lockouts not only risk ceding the global market to others, but also erode dependency on American technology.

President Trump, however, remains firm. Last week, he stated, “The most advanced, we will not let anybody have them other than the United States,” signaling a hard line on Nvidia’s state-of-the-art Blackwell chips, though he indicated some willingness to allow “negatively enhanced” versions for the Chinese market.

Amidst the policy standoff, Nvidia is hedging its bets—hosting high-profile events in Washington, opening the door to dialogue with policymakers, and reportedly agreeing (along with AMD) to share 15 per cent of China-based AI chip revenues with the US government if regulation permits. For now, however, rules enabling such sales remain pending.

The sense of urgency in Silicon Valley has only grown since the January debut of DeepSeek, a small but highly sophisticated Chinese AI lab whose language models shook the industry and prompted tough questions about America’s diminishing technical lead.

GCC accelerates past global AI adoption benchmarks

Naushad K. Cherrayil
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GCC accelerates past global AI adoption benchmarks
  • GCC shows how an entire region can align around AI—not only to accelerate productivity, but to shape the new rules of the global business game.
  • For business leaders, the path is clear: invest, align, and innovate—or risk falling behind in the AI-powered economy.

As artificial intelligence cements its place in the engine rooms of global business, GCC nations are racing ahead, transforming optimism into tangible performance gains.

According to Boston Consulting Group’s report, “From Pilots to Progress: AI at Work in the GCC,” the region has not only climbed to second place globally in AI adoption for 2025, but has also developed a culture of confidence and leadership support that outstrips the world’s averages.

For policymakers and business leaders across Kuwait, Qatar, Saudi Arabia, and the UAE, the signals are loud and clear: the GCC is harnessing AI, not just as a technical tool, but as a strategic lever for economic diversification and digital transformation.

In 2025, 58 per cent of GCC professionals expressed optimism about AI (9 percentage points up from the previous year), with 45 per cent reporting confidence—figures that surpass global norms and reflect a culture hungry for progress.

Dr. Lars Littig, Managing Director and Partner at BCG, credits not only new technology, but the region’s distinctive leadership approach:

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“The GCC is emerging as a global leader in AI deployment, with high frontline adoption and leadership support nearly twice the global average. For companies and public sector entities alike, this signals a clear mandate: strategic investment in AI, paired with strong leadership and training, offers a blueprint for enterprise-wide transformation.”

Widespread adoption

The study, conducted jointly with BCG X, surveyed everyone from C-suite decision makers to shop-floor staff. Results show that AI has broken out of pilot mode and into regular use:

  • 78 per cent of frontline employees use generative AI frequently (27 points above global rates)
  • 90 per cent of managers and 92 per cent of leaders are incorporating AI into their daily work, versus 78 per cent and 88 per cent globally

Such widespread adoption reflects not only enthusiasm but also clear strategic alignment with national economic visions.

New compliance risks

Training quality is another differentiator: 45 per cent of GCC employees find their AI education satisfactory, better than the 36 per cent global average. Further, 54 per cent of frontline staff say leaders provide clear AI guidance (double the global rate), signaling strong top-down alignment.

However, this proactive culture comes with a warning: shadow AI use is more common, with 63 per cent of workers saying they’d use unauthorized AI tools—again, higher than world averages—underscoring the need for robust compliance frameworks as AI becomes ubiquitous.

Productivity and innovation

Perhaps most compelling for business decision-makers are the clear productivity gains. Over half of respondents save more than an hour daily with AI, time now reinvested in:

  • Tackling additional work (58 per cent)
  • Strategic projects (38 per cent)
  • Improving output speed and quality (58 per cent)
  • Professional development (38 per cent)
  • Experimentation, collaboration, and even well-being activities

Yet, only half of employees report receiving guidance on how to best use this saved time—a missed opportunity to fully capitalise on AI’s potential contributions.

What lies ahead for the GCC? The study highlights two coming shifts: the rise of agentic AI—systems that operate independently to manage complex tasks—and the dawn of novel business models where AI is a source not just of efficiency, but of new revenue and competitive differentiation.

 “AI is already a powerful driver of performance, deeply embedded in team workflows. In the GCC, employees are saving, and reinvesting, hours every day—a compelling case for businesses to scale responsibly for sustainable growth and talent development,” Rami Mourtada, BCG Partner and Director, said.

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