OpenAI’s Revenue Run Rate Tops $40B | The Asia Trade 8/14/2026

OpenAI Revenue Growth [0:46]

• OpenAI is on track to generate over $40 billion in annualized revenue.
• Growth is driven by enterprise business, coding products, and a massive consumer base of 1 billion weekly users.

• "What we are hearing is that it is seeing this revenue run rate in the 40 billion range, which is quite a lot more than what we knew from last year."

Changing of the Guard in Chinese Tech [0:46]

• CXMT has surpassed Tencent to become China's most valuable company.
• JD.com posted its first quarterly revenue decline since its 2014 listing.

• "A changing of the guard in Chinese tech, with chipmaker CXMT topping Tencent as its most valuable company."

U.S. Drone Tariffs [0:46]

• The Trump administration is imposing tariffs as high as 100% on Chinese drones.
• DJI currently accounts for approximately 70% of the U.S. commercial drone market.

• "The Trump administration targets Chinese drones, slapping on tariffs as high as 100%."

Global Market Outlook [1:15]

• Asian stocks are expected to extend gains following record highs on Wall Street.
• Moderating U.S. inflation data is reducing expectations for a Federal Reserve rate hike in September.

• "We are expecting to see Asian stocks really extend those gains."

Memory Market Momentum [2:45]

• Sandisk has seen structural growth in the NAND market, with high-bandwidth NAND potentially replacing high-bandwidth memory.
• Sandisk is the top-performing member of the S&P 500, up over 500% this year.

• "They saw the NAND market absolutely exploding in size. They said it was structural."

Chinese AI Monetization [4:24]

• Chinese AI models are shifting from "cheap" to "capable," moving closer to U.S. frontier models.
• Companies are establishing a self-enforcing loop by using profits from monetization to fund further training.

• "What we've been seeing out of China is no longer cheap models but capable models."

Debt and Capital Markets [6:25]

• AMD is issuing $4.75 billion in debt across three tranches, priced tightly due to high demand for tech debt.
• The company remains in a strong financial position with debt levels well below cash on hand.

• "Now, the speculation is that the AMD $4.75 billion debt that is coming in three tranches is also being priced tight."

Chinese Industrial Policy [9:40]

• AI growth in China is characterized by high demand and pricing power, differentiating it from previous industrial overcapacity issues.
• The government is prioritizing the sector because it is viewed as a profitable and healthy economic driver.

• "One key differentiator of the AI kind of growth is that there's margins. There's pricing power."

Drone Market Impact [12:35]

• The 100% tariff on drones will heavily impact manufacturers like DJI.
• Tariffs for countries with trade deals (EU, Japan, Taiwan) are set at 15%, while the UK faces 10%.

• "This is the latest in the tit-for-tat between the U.S. and China on trade."

India's Power Grid Challenges [16:40]

• AI data centers in India are expected to drive power demand to 30 gigawatts by 2035.
• Google is utilizing "deemed distribution" licenses to build captive power networks and avoid cross-subsidy charges.

• "So, right now, in the country, we have about 1.5 gigawatt of supply which goes to data centers."

Korea Equity Outlook [19:50]

• Nomura maintains a 2026 KOSPI target of $10,000 to $11,000, citing AI data centers as a primary driver.
• Corporate buybacks, particularly from Samsung and SK Hynix, are expected to be a pillar for market re-rating.

• "Fundamentals for COSPI has not changed. It remains quite positive, driven mainly by the AI data center theme."

Japanese Earnings Season [24:10]

• Over two-thirds of Japanese companies beat earnings expectations, bolstered by tech demand and a weak yen.
• Investors are becoming more selective as currency-driven gains face uncertainty from potential Bank of Japan rate hikes.

• "More than two-thirds of companies coming out and beating expectations."

Japan Investment Shift [27:15]

• A growing number of Japanese investors are choosing to invest rather than save, fueling "animal spirits" in the market.
• Inflation remains a concern for pensioners, with consumption data showing a widening inequality gap.

• "With rising prices, profits are growing. Workers are getting the strongest wage gain in decades."

Pet Longevity Market [30:15]

• The pet care market is projected to hit $165 billion in the U.S. this year, with increased interest in experimental longevity drugs.
• Veterinarians are advising caution regarding unproven treatments like rapamycin and red light therapy.

• "The anti-aging movement is no longer just for humans, with pet owners increasingly turning to experimental treatments."

Chinese Luxury Sector [35:50]

• Chinese consumers are "trading down" from luxury handbags to high-end cosmetics and skincare to maintain status during the downturn.
• McKinsey projects 6% annual growth for the Chinese luxury market despite the shift in spending habits.

• "Shoppers don't have thousands of US dollars to spend anymore on handbags and essentially jewelry, but they still want to look good."

Macau Gaming Results [38:40]

• Macau gaming revenue faced pressure in the second quarter, partly due to the World Cup event causing premium customers to defer visits.
• The mass market remains tied to overall Chinese consumer sentiment, which has yet to fully recover.

• "The overall segment in the second half was like single-digit growth, like 4% while I growth in the third quarter."