Key Takeaways
- Anthropic reported a historic $11.6 billion in Q2 revenue, surpassing OpenAI for the first time as its Claude Code tool drives massive enterprise adoption.
- U.S. President Donald Trump ordered a "substantial reduction" in joint military drills with South Korea, leading to the halving of the Ulchi Freedom Shield exercise schedule.
- Iran warned the Strait of Hormuz will remain closed until the U.S. lifts its naval blockade and eases oil sanctions, threatening global energy stability as crude prices hover near $91.
- New Zealand’s Q2 Producer Price Index (PPI) inputs surged 2.9%, significantly higher than the prior 1.4%, signaling persistent inflationary pressure in the region.
- LG Energy Solution (373220) is reportedly in talks with the U.S. to supply batteries for drones, while LG Electronics (066570) accelerates its robotics partnership with NVIDIA (NVDA).
AI Market Upheaval: Anthropic Overtakes OpenAI
In a dramatic shift for the artificial intelligence sector, Anthropic reported preliminary Q2 2026 revenue of $11.6 billion, a more than 14-fold increase year-over-year. This surge allowed the company to surpass OpenAI, which reported $6.7 billion in revenue for the same period. While Anthropic achieved its first-ever profitable quarter with an estimated $559 million in operating profit, OpenAI continues to face deepening losses as its growth rate trails its primary rival.
The rapid expansion of Anthropic is largely attributed to the success of Claude Code, which has seen business subscriptions quadruple since the start of the year. The company is now reportedly preparing for an October 2026 IPO with a targeted valuation that could exceed $2 trillion. In contrast, investors are expressing concern over OpenAI's sustainability as its costs ballooned to an estimated $34 billion in the previous fiscal year.
Geopolitical Tensions: Hormuz Standoff and Korean Drills
The global energy market remains on edge as Iran maintains its closure of the Strait of Hormuz, a critical chokepoint for 20% of the world's oil. Tehran insists the waterway will not reopen until the U.S. releases frozen assets and ends its naval blockade. President Trump has countered by suggesting the U.S. may declare the strait a U.S. territory, further escalating a situation that has already seen commercial vessels struck by projectiles.
Simultaneously, the U.S.-South Korea alliance faces new friction following President Trump's order to halve the schedule of joint military exercises. The Ulchi Freedom Shield drills have been significantly scaled back, with counterattack operations canceled to avoid "hostile signals" toward North Korea. This move has caused concern in Seoul, where KOSPI 200 futures closed down 4.3% amid broader regional uncertainty.
Corporate Highlights and Economic Data
South Korean industrial giants are navigating a complex landscape of dividends and new technology pacts. POSCO Holdings (005490) approved a 66.28 billion won interim cash dividend, while LG Electronics (066570) is deepening its integration with NVIDIA (NVDA) using the Isaac platform for home robotics. SK Hynix (000660) remains a key stock to watch as tech-led volatility impacted global indices, including a 0.7% drop in the S&P 500.
In the South Pacific, New Zealand's latest inflation data surprised markets with a sharp rise in producer prices. PPI Input rose 2.9% quarter-on-quarter, up from 1.4%, while PPI Output climbed to 1.6% from 0.8%. These figures suggest that cost pressures are being passed through the supply chain, potentially complicating the Reserve Bank of New Zealand's future interest rate trajectory.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.