In late July 2026, Elastic N.V. announced an expanded collaboration with OpenAI Inc. to connect OpenAI models with Elasticsearch for production-ready, enterprise AI applications grounded in governed data across search, security, and observability. Elastic will serve as the retrieval and governance layer for OpenAI's reasoning models, enabling permission-aware context, lower token costs, and agentic security operations that can incorporate GPT-5.5 Cyber models into Elastic Security workflows. The partnership reinforces Elastic's role as the retrieval and governance layer for AI, supporting the near-term catalyst of broader AI adoption on its platform, while the ongoing risk remains intense competition from hyperscale cloud providers' native search and security offerings. The Jina On Prem release is also relevant, showing Elastic supporting both cloud-based AI agents and fully isolated environments. Elastic's narrative projects $2.6 billion revenue and $120.3 million earnings by 2029, assuming 14.7% yearly revenue growth and an earnings decline of about $247.5 million from $367.8 million today. Forecasts yield a $74.52 fair value, a 13% upside to its current price. Some optimistic analysts expected Elastic to reach about US$2.8 billion in revenue and US$160.8 million in earnings, but the collaboration could reinforce or challenge those views, especially against the risk that stricter data privacy rules constrain how much enterprise data Elastic-powered AI is allowed to touch.