BoP Q3FY26 data showed India’s current account deficit (CAD) narrowing sequentially to 1.3% of GDP, supported by robust services exports, even as the capital account turned into a deficit amid foreign outflows, according to a note by Motilal Oswal. The shift led to a wider overall balance of payments (BoP) deficit during the quarter.

Key Highlights

• Overall BoP deficit widened to $24.4 billion (2.4% of GDP) in Q3FY26, from $10.9 billion in Q2FY26, but narrowed from $37.7 billion in Q3FY25.
• Trade deficit expected to moderate to $92.8 billion in Q4FY26 as festive demand normalises.
• FY26 CAD projected at ~0.9% of GDP ($39 billion).
• FY27 CAD estimated at 1.0% of GDP ($44 billion), assuming average oil price of $65 per barrel.

India’s current account deficit (CAD) narrowed sequentially to $13.2 billion, or 1.3% of GDP, in Q3FY26, from an upwardly revised $14.1 billion (1.5% of GDP) in Q2FY26, supported by stronger invisible receipts, particularly services exports.

However, on a year-on-year basis, the deficit widened slightly to 1.3% of GDP from 1.1% in Q3FY25, as the merchandise trade deficit expanded faster than gains in services exports and remittances.

Services exports cushion widening trade deficit

The merchandise trade deficit widened to $93.6 billion (9.2% of GDP) in Q3FY26, compared with $89 billion in Q2FY26 and $79 billion in Q3FY25.

Goods exports increased 1.7% year-on-year, while imports rose 8.6%, driven largely by higher gold imports and stronger non-oil non-gold imports.

Despite this widening trade gap, net invisible receipts increased 18% year-on-year in the quarter. Net services exports grew 12%, supported mainly by demand for software and business services.

India’s core current account balance, which excludes petroleum products and valuables, remained in surplus at $40.7 billion (4% of GDP). This compares with $43.9 billion in Q3FY25 and $34 billion in the previous quarter.

Capital account turns negative amid foreign investment outflows

While the current account improved sequentially, India’s capital account moved into deficit during the quarter.

The capital account recorded a $10 billion deficit (1% of GDP) in Q3FY26, compared with a $2.1 billion surplus in Q2FY26.

The shift was largely driven by foreign investment outflows and significant withdrawals in other capital flows.

Net foreign investment remained negative during the quarter. Foreign direct investment (FDI) recorded net outflows of $3.7 billion, while portfolio investment declined for the second consecutive quarter, though the pace of outflows slowed. Banking capital inflows also moderated.

Oil prices remain a key risk to external balance

According to Motilal Oswal, every $10 per barrel increase in crude oil prices typically widens India’s oil deficit by $10–12 billion, equivalent to around 0.4–0.5% of GDP.

If oil prices sustain above $80 per barrel, India’s CAD could widen to around 2% of GDP. For comparison, the CAD stood at 2.1% of GDP in FY23, when crude prices averaged about $95 per barrel.

Rising geopolitical tensions in the Middle East could push oil prices higher, posing risks to India’s external balance, the rupee, and capital flows.

Strong forex reserves provide buffer

India’s external position continues to be supported by strong foreign exchange reserves.

As of February 20, the Reserve Bank of India’s foreign exchange reserves stood at $723 billion, providing an import cover of about 10.8 months.

For the first nine months of FY26, the current account deficit stood at 1% of GDP, compared with 1.3% in the same period of FY25.

Motilal Oswal expects the Indian rupee to weaken toward the 93 level in the near term, with possible intervention by the Reserve Bank of India in the foreign exchange market.

While strong service exports and steady remittance inflows could keep FY26 CAD manageable, sustained pressure from higher crude oil prices may influence the external balance outlook in FY27.

Quick FAQs

Q1. Why did India’s current account deficit narrow in Q3FY26?
Strong growth in services exports and higher invisible receipts helped offset a widening merchandise trade deficit.

Q2. What caused India’s capital account deficit in Q3FY26?
Foreign direct investment outflows, declining portfolio investment and increased other capital outflows pushed the capital account into deficit.

Q3. How do oil prices affect India’s current account deficit?
Higher crude oil prices increase the import bill. Every $10 rise in oil can widen the deficit by $10–12 billion.

Q4. How strong are India’s foreign exchange reserves currently?
India’s forex reserves stood at about $723 billion, covering roughly 10.8 months of imports.

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Nintendo Switch 2 storage costs are increasing as global prices for DRAM and NAND flash memory rise. Strong demand from artificial intelligence data centres is tightening supply across the semiconductor industry. The trend is affecting consumer electronics including gaming consoles, smartphones and PCs that rely on the same memory components.

Key Highlights

• Nintendo Switch 2 storage costs are rising due to global increases in DRAM and NAND flash prices.
• DRAM modules used in the console rose about 41% while NAND storage prices increased roughly 8%.
• AI server demand is absorbing large volumes of memory chip supply worldwide.
• Global memory production is concentrated in South Korea, Japan and Taiwan.

Rising global memory chip prices are increasing storage costs associated with the Nintendo Switch 2, as the tightening semiconductor supply driven by artificial intelligence infrastructure begins affecting consumer electronics.

The Switch 2, introduced in 2025, uses LPDDR memory and NAND flash storage for system performance and game downloads. Recent industry data shows the price of DRAM modules used in the console increased about 41% within a quarter, while 256GB NAND flash storage prices rose roughly 8%, raising the cost of hardware components used in the device.

Higher memory prices are also affecting expandable storage options. The console supports microSD Express cards for additional storage, and these cards rely on NAND flash memory, meaning price increases in flash chips are being reflected across accessories used by players.

Global memory demand tightens supply

The price increases are linked to strong demand for memory chips used in artificial intelligence servers and cloud data centres, which require significantly larger volumes of DRAM and high-speed storage than traditional computing systems.

According to market research firm TrendForce, DRAM contract prices are expected to rise significantly during 2026 as supply remains constrained while demand continues to expand across cloud computing and AI workloads.

Memory manufacturers have increasingly prioritised server-grade chips, which offer higher margins and are required for AI infrastructure. This shift has reduced available supply for consumer electronics, including gaming consoles, smartphones and personal computers.

The global memory market remains highly concentrated in East Asia, where companies in South Korea, Japan and Taiwan dominate production. Major suppliers include Samsung Electronics, SK Hynix and Micron Technology, whose manufacturing capacity influences global pricing trends.

Storage is becoming a key constraint for modern games

Rising storage costs are becoming increasingly relevant for gaming hardware as modern titles require larger installation sizes.

Many recent console games exceed 50GB to 100GB, meaning players often rely on external storage cards to expand available space. With NAND flash prices increasing, these storage upgrades may become more expensive for consumers.

Industry data also shows that the memory shortage is affecting a wider range of technology products. Smartphones, laptops and gaming consoles rely on the same DRAM and NAND supply chain, meaning price fluctuations can ripple across multiple sectors of the electronics market.

Nintendo’s performance and hardware demand

Despite rising component costs, demand for the Switch 2 has remained strong. The company reported more than 17 million units sold by the end of 2025 and maintained its forecast to ship around 19 million consoles during the fiscal year.

Nintendo has not announced any change to the console’s retail price, though higher component costs could influence hardware margins across the gaming industry.

Quick FAQ

Q1. Why are Nintendo Switch 2 storage costs increasing?
Storage costs are rising due to higher global prices for DRAM and NAND flash memory used in the console.

Q2. What storage technology does the Nintendo Switch 2 use?
The console uses internal NAND flash storage and supports expandable storage through microSD Express cards.

Q3. How is AI demand affecting gaming console storage prices?
AI data centres require large volumes of memory chips, reducing supply available for consumer electronics like gaming consoles.

Q4. Which countries dominate global memory chip production?
South Korea, Taiwan and Japan host major memory manufacturers that supply chips used in consumer electronics worldwide.

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Robinhood has launched a Platinum credit card with a $695 annual fee, entering the premium credit card segment as it expands financial services beyond trading. The fintech company said the card offers benefits valued around $3,000 annually and targets higher-income customers while broadening its financial ecosystem.

Key Highlights

• Robinhood launched a $695 annual fee Platinum credit card targeting higher-income consumers.
• The card offers around $3,000 in annual benefits, placing it in the premium card segment.
• Robinhood reported $4.5 billion revenue and $68 billion net deposits in 2025.
• Platform serves 27 million funded accounts with about $324 billion in assets.

Robinhood Markets Inc. has introduced a Platinum credit card with a $695 annual fee, entering the premium credit card segment as the fintech firm expands its financial services beyond retail stock trading.

The Robinhood Platinum credit card was unveiled during the company’s “Take Flight” product event. The card will initially be available on an invite-only basis, although users can request access through Robinhood’s platform. It is issued on the Visa network and features platinum plating, according to company disclosures.

Robinhood said the card offers travel and lifestyle benefits valued at about $3,000 annually, placing it among premium credit cards typically aimed at higher-spending consumers.

The premium card segment attracts fintech entrants

The launch positions Robinhood in a market traditionally dominated by large financial institutions offering high-fee travel and lifestyle cards.

Premium cards issued by major banks in the United States often charge high annual fees. For example, the American Express Platinum card carries a fee of about $895, while JPMorgan Chase’s Sapphire Reserve charges around $795, offering travel rewards and other benefits.

The Robinhood Platinum credit card follows the company’s earlier Gold credit card, launched in 2024. The new card offers higher credit limits than the Gold card, reflecting its focus on customers with larger spending capacity.

Financial technology firms have increasingly moved into traditional banking products such as credit cards, lending and wealth management as they seek new revenue streams and deeper relationships with customers.

Robinhood broadens its financial ecosystem

The credit card launch comes as Robinhood continues expanding its product lineup to position itself as a broader financial services platform.

The company reported $4.5 billion in total revenue for 2025, representing its strongest annual performance to date. Robinhood also recorded $68 billion in net deposits during the year, reflecting continued growth in customer assets.

Robinhood currently serves about 27 million funded customer accounts and holds approximately $324 billion in platform assets, according to company data.

Headquartered in Menlo Park, California, Robinhood primarily operates in the United States, though it has expanded selected services such as cryptocurrency trading into parts of Europe and the United Kingdom.

Alongside the credit card announcement, the company also introduced custodial investment accounts, allowing parents or guardians to invest on behalf of minors until they reach adulthood.

Robinhood executives said the new products are designed to meet the changing financial needs of the platform’s users, whose median age is now in the mid-30s.

Quick FAQs

Q1. What is the Robinhood Platinum credit card?
The Robinhood Platinum credit card is a premium credit card launched by Robinhood with a $695 annual fee and travel-related benefits.

Q2. How much is the annual fee for the Robinhood Platinum credit card?
The Robinhood Platinum credit card carries a $695 annual fee.

Q3. Why did Robinhood launch a premium credit card?
Robinhood launched the card to expand beyond stock trading and offer broader financial services to higher-income customers.

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OpenAI has a massive deal to provide AI to the U.S. military. This came soon after the government prohibited a competing company, known as Anthropic. Anthropic declined to allow the military to use its AI for spying or robot weapons. The then branded Anthropic as a security threat. OpenAI quickly stepped in and was happy to do the job, but many people are now concerned about how this technology would be used in war.

Key Insights 

• OpenAI acquired a military contract once held by Anthropic.
• Anthropic answered the military with a no because of safety rules.
• The Pentagon wants to use A.I. for any legal purpose, indefinitely.
• After the deal collapsed, the government labeled Anthropic a supply chain risk.
• People are worried that intelligence will be used for war or spying.

The Fight Over Rules

OpenAI has a new contract with the United States military. Anthropic did not want the military to use its A.I. for some things. That led the government to halt collaborating with them. Then OpenAI came in to do the job. This change has created a lot of buzz in the tech world.

Anthropic is under contract to assist the military with AI. But the government wanted to rewrite the rules. They also wanted to use the AI for anything legally permissible. Anthropic said that was too risky. They feared the A.I. could be turned on people at home.  They did not want it to autonomously control weapons.

Anthropic attempted to establish bright lines for the military’s work. They wanted to ensure that the AI remained safe and fair. These limits were not favored at the Pentagon. They have argued they need full control to ensure the country’s safety. Because they were unable to reach an agreement, the partnership was terminated.

OpenAI Steps In

Right after Anthropic was out the door, OpenAI cut a deal with the Pentagon. This happened very quickly. Some believe OpenAI rushed to accept the cash. They fear that OpenAI didn’t request enough safety rules. OpenAI claims they will continue to adhere to fundamental ethical boundaries.

The chief executive of OpenAI, Sam Altman, spoke about the arrangement. It might have looked messy, he said, because it all happened so fast. He told his aides that they aimed to assist the country. He also indicated that they didn’t want to depart the military without proper tools. Many employees at OpenAI still feel unhappy about that decision.

Problems for Anthropic

The government did not agree with Anthropic’s decision. They tagged the company with a nasty label known as a ”supply chain risk.” This label, normally reserved for enemies of the country. Anthropic’s business model makes it difficult for other companies to partner with them. That can be devastating to their future business.

Anthropic claims they are acting ethically. They are convinced that AI is not yet ready to make life-or-death decisions. They are even battling in court to overturn the government’s label. They want to make it clear that being safe doesn’t mean being a threat to the country.

What Happens Next

The world will be watching the military’s application of this new AI. Some people are glad that the U.S. has strong tech. Others are fearful of what a war machine AI might accomplish. Other technology companies are reevaluating their own rules. They must choose between security through military means and theirs being compromised in the name of safety.

So, this deal alters how the AI companies and government communicate with each other. It indicates that the government wants control of the technology. Now OpenAI needs to show it can keep its A.I. safe while working for the Pentagon. We should expect to hear a lot more about A.I. in war.

FAQs

1. Were there reasons for losing the deal? 

They rejected allowing the military to use AI for either spying or weapons.

2. What is OpenAI doing now? 

OpenAI Makes Its AI Tech Available To Pentagon For Military Use

3. What name did the government give to Anthropic? 

They labeled them a supply chain risk, a very serious label.

4. Will OpenAI’s A.I. be used in warfare?

It wants to be able to use it for all lawful activities, including potentially war.

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Australia will join the G7 critical minerals alliance after signing a series of new agreements with Canada, Canadian Prime Minister Mark Carney said on Wednesday. The move comes as Western nations step up efforts to diversify supply chains away from China, which dominates global production and processing of key minerals used in semiconductors and defence.

Key Highlights

• Australia to join the G7 critical minerals alliance.
• Canada and Australia signed new bilateral agreements on mineral cooperation.
• Both nations produce around one-third of global lithium and uranium.
• Combined, they account for over 40% of global iron ore production.
• Australia has begun building a critical minerals stockpile, starting with antimony and gallium.

Speaking in Australia’s parliament on the final day of his three-day visit, Mark Carney said Canada and Australia had signed multiple agreements to strengthen cooperation on critical minerals development and supply chains.

Carney also announced that Australia would join the Group of Seven minerals alliance, describing it as the largest grouping of trusted democratic mineral reserves globally.

Western governments have been seeking ways to reduce reliance on China, which holds a dominant share of global production and processing capacity for several minerals essential for advanced technology and defence systems.

Strategic minerals move to the centre of global policy

Critical minerals, including lithium, uranium, antimony and gallium, play a key role in manufacturing semiconductors, renewable energy technologies and military systems.

The concentration of supply in a limited number of countries has raised concerns among advanced economies about economic security and geopolitical influence over strategic resources.

Canada and Australia together account for around one-third of global lithium and uranium production and more than 40% of global iron ore output, making the partnership significant for efforts to build alternative supply chains.

Production alliances seen as a solution

Energy and Mining Minister Tim Hodgson said Canada believes forming a production alliance or “buyers’ club” among partner countries could be a more effective way to manage supply risks than relying only on market pricing.

Such coordination could allow countries to align investment, production planning and purchasing strategies for key minerals.

China remains the dominant force in the processing of many rare earth elements and strategic minerals, prompting Western economies to pursue more resilient supply chains.

Australia has already committed funding to establish a national critical minerals stockpile, aimed at strengthening domestic industry and improving supply security.

Broader strategic cooperation in the Indo-Pacific

Carney’s visit to Australia is part of a wider Asia-Pacific tour that also includes Japan and India. The trip aims to deepen cooperation between Canada and Australia, often described as “middle powers”, across defence, maritime security, trade and artificial intelligence.

The expansion of the G7 minerals alliance is expected to lead to closer coordination on investment, production and trade policies among participating countries.

Further details on implementation and potential joint projects are likely to emerge as Canada and Australia formalise their cooperation framework in the coming months.

Quick FAQs

Q1. What is the G7 critical minerals alliance?
A partnership among advanced economies to secure stable and diversified supplies of strategic minerals.

Q2. Why are critical minerals strategically important?
They are essential for semiconductors, batteries, renewable energy systems and modern defence technologies.

Q3. Why are Western countries diversifying mineral supply chains?
To reduce reliance on China, which dominates processing and production of several key minerals.

Q4. Why are Canada and Australia important in the minerals market?
Both countries are major producers of lithium, uranium and iron ore, making them key suppliers for alternative global supply chains.

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Gold prices increased as investors searched for safe tools following rising global tensions and poor U.S. dollar. Gold for immediate delivery climbed to about $5,177 an ounce and futures also advanced. Silver, platinum, and palladium also climbed as investors parked cash into safe havens amid market uncertainty.

Key Insights

• Prices of gold rose as the U.S. dollar lost a bit of its power.
• People like to buy gold when they are concerned about the economy or wars.
• Investors are awaiting new data on U.S. jobs and money
• Lower interest rates generally make gold more attractive to buyers.
• Gold could remain high if the dollar continues to fall, experts think.

What Makes Gold More Expensive

Gold prices increased today as many began to purchase the metal to save their money. The opposite is happening now as gold becomes a much more attractive play since the U.S. dollar isn’t as good an option as it was just a few days ago. When the dollar declines, gold gets cheaper for people with other kinds of money and they buy more of it. This increased demand consequently drives up the market price of gold.

The other reason for the price spike is that investors are becoming slightly jittery. When there’s trouble in the world or stocks feel weak, people move their cash to gold. They do so because gold typically retains its value during periods when other investments are crashing.

The Role of the U.S. Dollar

Gold and the U.S. dollar typically have an inverse relationship. The dollar lost a bit today, and that allowed gold to shine. Traders are closely monitoring the dollar to see whether it will continue to decline or rebound soon.

Should the dollar remain weak to close out the week, gold could continue its ascent even higher by week’s end. Big banks and professional traders are watching these changes closely every hour.

Waiting for Big Economic News

Everyone in the financial world is looking for new data from the United States. This data will tell us how many people land jobs and how fast prices are climbing for those everyday items. If the data indicates an economic slowdown, gold may rise even further.

The guides that help the government determine whether to raise interest rates Gold does better when rates are low, as gold itself pays no interest. If rates remain elevated, some people may want to keep their money in savings accounts instead.

What Experts Think Happens Next

Most experts believe gold will remain stable, or continue to rise, for some time. As long as uncertainty looms in the Middle East and elsewhere, people will burn for gold, so they say. It serves as a backstop against their wealth. But if the U.S. economy suddenly seems very strong again, the price could fall. But for now, sentiment in the market remains cautious, and most players are more than happy to keep their gold until things become more obvious.

FAQs

1. Why do you think gold is considered a haven? 

It’s known as a haven because it typically maintains its value in challenging economic times.

2. What is its effect on dollar? 

When the dollar is weak, gold generally becomes more costly for people to purchase.

3. What causes gold prices to fall? 

High interest rates and a superstrong economy can put downward pressure on gold prices.

4. Who is currently purchasing the most gold? 

To safeguard their savings, large banks and individual investors are purchasing gold.

5. Will the price keep going up? 

It’ll depend on upcoming news about jobs and how the U.S. dollar does this week.

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China has set its economic growth target for the year at between 4.5% and 5%. It is the lowest target the country has set since 1991. The announcement was made during the “Two Sessions,” a significant political gathering in Beijing where leaders discuss the direction of the nation and its 15th Five-Year Plan.

Key Insights

• China’s growth hit 4.5% to 5%, down from around 5% last year.
• The lowest official growth target in 30 years.
• The country is moving away from raw speed in favour of the hi-tech industry and green energy.
• It is facing housing crisis, falling birth rates and debt.
• New trade taxes from the U.S. and higher oil prices.

A Reality Check on Economic Ambition

China hit its lowest economic growth target for the year since 1991, between 4.5% and 5%. China used to be all about explosive growth. But experts added that the new, lower target demonstrates that Beijing is being more realistic about the world now. By specifying a range rather than one fixed number, the government has more flexibility. They won’t feel pressured to dump a ton of cash just to achieve an unattainable goal.

Many of China’s local provinces have adjusted their own expectations downward already. They are saddled with huge debts, and the traditional method of constructing new apartments and roads is no longer performing as well. This all-new target realises that the glory days of easy double-digit growth are, for now, over.

Solving the Housing and Expenditure Challenge

One reason for the slower growth is the property crisis. For years the making of homes constituted a major part of China’s wealth. Now many developers are in distress, and people are afraid of buying homes. When their home value declines, families feel poorer and spend less at stores and restaurants.

To remedy this, Premier Li Qiang said the government wants to enable more spending by people. They are trying to make having kids easier by also improving health care and schools. When people feel secure about what contributes to their safety and the future they live in, they will spend money on it and that helps grow the economy from within rather than just by selling imported goods.

The New Tech and Energy Arms Race

As the old ways of growing slowly, China is betting big on technology. The government is preparing more than 100 large-scale projects including scientific research, improved transportation and renewable energy. They aim to be the world’s leader in electric vehicles and renewable energy to address climate change and generate new jobs.

This change also helps shield the country from global troubles. Given the new trade taxes from the U.S., as well as rising oil prices driven by wars in the Middle East, China wants to be less dependent on other countries. By constructing its own high-tech chips and energy sources, it hopes to remain robust even if trade with the West is more fraught.

Navigating a Tough Global Environment

Now global politics are making life very difficult for China. The country recently cut off some of its access to cheap oil sources, raising energy costs. Meanwhile, trade tensions with the U.S. under President Donald Trump have resulted in high taxes on Chinese goods. That makes it more difficult for China to export its products.

In a counterattack, China is trying to sell more to other parts of the world, such as Southeast Asia and South America. President Xi Jinping is also expected to sit down with the U.S. leader in April to discuss both of those issues. For now, the aim is to keep the economy steady while all else seems unpredictable.

FAQs

1. Why is China’s the target low? 

The government is being realistic about a slumping housing market and scaled back spending.

2. What is the “Two Sessions”? 

It is the country’s largest annual political gathering where new laws and goals are established.

3. How does the U.S. impact China’s growth? 

New trade tariffs make it more challenging and expensive for China to export products.

4. What do we now know about the Five-Year Plan? 

A blueprint for the nation to spend on tech, green energy and social welfare through 2030.

5. Is the population in China increasing? 

No, the birthrate is declining, so there may be fewer workers in the future.

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Christine Hunsicker, founder of fashion technology company CaaStle, pleaded guilty to securities fraud linked to a scheme involving more than $300 million from investors. Prosecutors said she falsified financial records to exaggerate company performance. The startup later filed for Chapter 7 bankruptcy liquidation after financial discrepancies surfaced.

Key Highlights

• CaaStle founder Christine Hunsicker pleaded guilty to securities fraud involving more than $300 million from investors.
• Prosecutors said falsified financial records were used to exaggerate company revenue and profitability.
• Court filings showed CaaStle reported $15.7 million revenue in 2023 despite claims of $439.9 million.
• The fashion technology startup filed for Chapter 7 bankruptcy liquidation in June 2025.

Christine Hunsicker, founder of fashion technology startup CaaStle, has pleaded guilty to securities fraud after U.S. prosecutors said she misled investors and raised more than $300 million using falsified financial information.

Hunsicker entered the plea in federal court in Manhattan. Prosecutors said she agreed to forfeit nearly $300 million linked to the fraud. She faces a potential prison sentence of up to 20 years, with sentencing scheduled for August 2026.

The CaaStle founder fraud case centres on allegations that investors were given inaccurate financial documents while the company sought venture funding.

False financial statements used to raise investor funds

Authorities said Hunsicker began the scheme in 2019 while raising capital for CaaStle, a technology platform that helps fashion brands launch clothing-rental and subscription programs.

Prosecutors said she circulated fabricated financial statements, altered bank records and false audit reports that overstated the company’s revenue, profits and available cash.

Court filings show she claimed CaaStle generated about $439.9 million in revenue and $66.3 million in profit in 2023. Investigators later determined the company actually reported roughly $15.7 million in revenue and an $81 million loss that year.

Authorities said about $275 million was raised from CaaStle investors based on these claims. An additional $30 million was raised for another venture known as P180 using similar representations.

CaaStle’s funding history and collapse

CaaStle was founded in 2011 and developed software and logistics systems to help fashion retailers operate clothing-rental services.

The company raised more than $530 million in venture funding from investors over the years before the alleged fraud came to light.

Following the financial disclosures and legal scrutiny, the company filed for Chapter 7 bankruptcy liquidation in June 2025, effectively shutting down operations.

Global clothing rental market continues to grow

CaaStle operated within the expanding clothing rental and fashion subscription market, a segment that has grown as consumers increasingly rent apparel rather than purchase it.

Industry research from Mordor Intelligence estimates the global online clothing rental market will reach around $2 billion in 2026, with North America representing the largest share.

The market is also expanding across Europe, East Asia and Southeast Asia, where rental fashion platforms have emerged alongside resale and second-hand clothing marketplaces.

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US services sector activity accelerated to its strongest level in more than three and a half years in February, driven by rising new orders and inventory rebuilding, according to data from the Institute for Supply Management (ISM). However, escalating Middle East tensions and higher gasoline prices are emerging as downside risks to the growth outlook.

Key Highlights

• Fourteen services industries, including mining, wholesale trade, utilities, construction and educational services, reported growth.
• Retail trade, arts and entertainment, and transportation and warehousing contracted.
• Prices paid by businesses eased to 63.0 from 66.6 but remained elevated.
• Supplier deliveries index slipped to 53.9, indicating slower deliveries.
• Services employment rose to 51.8 from 50.3.

The Institute for Supply Management said its non-manufacturing purchasing managers index (PMI) rose to 56.1 in February, the highest reading since July 2022, from 53.8 in January. Economists polled by Reuters had expected a reading of 53.5.

A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of US economic activity.

Businesses rebuild inventories as the demand outlook improves

The survey showed inventories rebounding sharply to 56.4 from 45.1 in January, as businesses prepared for stronger demand in the coming months.

Participants reported building stock ahead of expected spring demand, following three consecutive quarters of inventory drawdowns.

New orders climbed to 58.6, the strongest level since September 2024, while export orders rebounded to levels last seen in July 2024.

Backlog orders also expanded for the first time in a year, suggesting firms are seeing stronger incoming demand.

Strong PMI supports first-quarter growth outlook

The strong services reading reinforced expectations that the US economy could post solid growth in the first quarter.

Economic growth slowed to an annualised 1.4% pace in the fourth quarter, after expanding 4.4% in the July-September period.

Oil price surge raises risks for consumers and inflation

However, the Middle East conflict poses potential risks to the outlook.

US gasoline prices have increased by at least 20 cents per gallon since the airstrikes on Iran last weekend, raising concerns that higher energy costs could affect consumer spending.

Goldman Sachs analysts estimated that a sustained $10 per barrel rise in oil prices could reduce fourth-quarter 2025 GDP growth by about 0.1 percentage point.

Quick FAQs

Q1. What drove the rise in the US services PMI in February?
Stronger new orders, rising inventories and expanding backlog orders contributed to the increase in the services PMI.

Q2. How did inventories change in the latest ISM survey?
Inventories rebounded sharply to 56.4 from 45.1, as businesses built stock ahead of expected demand.

Q3. What risks could slow the US services sector growth?
Higher oil prices, geopolitical tensions and supply constraints in logistics could weigh on business activity.

Q4. What does the PMI level above 50 indicate?
A reading above 50 signals expansion, while a level below 50 indicates contraction in the sector.

Q5. What does the PMI data mean for Federal Reserve policy?
Strong services activity and stable employment could support expectations that the Federal Reserve keeps interest rates unchanged in the near term.

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In a matter of months, at an annualised revenue run rate of $25 billion, OpenAI’s revenue had increased by 17%. From data, its growth is driven by an aggressive move into the enterprise market and alliances with large consulting firms. 

Key Insights

• OpenAI’s annualised revenue has officially surpassed $25 billion.
• An increase of 17% from the $21.4 billion at year’s end.
• Uptake is primarily driven by large corporate enterprises building full-fledged business projects using AI tools.
• The company has partnered with leading consulting firms worldwide to expand its reach.

Demand for Professional Tools Increases

OpenAI is the leader in artificial intelligence and has achieved a huge new milestone, as annualised revenue hits over $25 billion. This figure gauges how much the company would make in a year if its current monthly take continued at that pace. The company was making substantially less just months earlier, a testament to how quickly the world is moving on these new digital tools.

The increase in earnings illustrates a transition from individuals simply testing out ChatGPT to large companies integrating the software deeply into their everyday work. This steady source of income helps pay for the mind-bogglingly high expenses involved in creating and maintaining its supercomputer systems. The financial underpinnings of the company continue to strengthen as more organisations sign up for premium services.

Breadth in Corporate Expansion via Global Consulting Partnerships

A principal driver of this recent success has been OpenAI’s new strategy focusing on large enterprises. Instead of waiting for customers to approach them, OpenAI has enlisted four of the largest consulting firms in the world. It is these partners that help large companies overcome small pilot tests and move towards full-scale AI use, hugely higher revenues for OpenAI.

These consulting behemoths are the Sherpas of A.I., showing companies how to train AI to process data, generate reports and serve customers. That hands-on approach has helped allow OpenAI to outpace many small competitors that don’t have the same global reach. Through its focus on professional industry needs, it’s transformed a popular chatbot into being core to the business essentials of many multi-billion dollar industries.

Battling Heavy Competition from Big Tech 

OpenAI, even posting record revenues, is not alone in the market. Heavyweight rivals like Google and well-funded startups like Anthropic are vying for the same group of corporate customers, too. Anthropic, for instance, has recently had its own revenue run rate rise to nearly $19 billion as it signs up customers seeking other varieties of AI safety features.

In this way, OpenAI keeps its technology advanced and adds new features that make it more user-friendly. The competition is making everyone move faster, which is good for the customers who get new and better tools every few months. OpenAI’s ability to sustain its lead in such a crowded field is a testament to how far ahead of the competition OpenAI’s brand goes and its early position in the AI race.

Forecasting for a Future Based on Computing Power and Public Listing

For a bigger vision, looking toward the end of the decade, OpenAI is eyeing something even bigger. The company is looking to invest about $600 billion in computing resources by 2030. It’s a huge investment, because you have to do that if you want to build the next generation of AI that thinks more like a human. Without these supercomputers, the company couldn’t meet its own growth targets.

Investors are closely watching these figures as OpenAI inches toward an initial public offering, or IPO. Some market experts say the company could be worth as much as $1 trillion when it eventually lists on the stock market. For the moment they are concentrating on revenue growth and further demonstrating that AI is a sound long-term business rather than just a fad.

FAQs

1. What’s OpenAI’s current annualised revenue? 

As of last month, the company hit a milestone of $25 billion in annualised revenue.

2. What was their latest revenue growth? 

It was a 17 per cent increase from $21.4 billion that was reported at the end of last year.

3. Why is OpenAI expanding so rapidly? 

Most of the growth comes from larger companies applying A.I. to large, professional business projects.

4. Who are OpenAI’s biggest rivals? 

The company is competing with tech giants such as Google and fast-rising A.I. startups like Anthropic.

5. What is the company’s long-term plan for spending? 

By 2030, OpenAI is planning to spend $600 billion on computing power.

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