"Right now, the indices are seeing a reinvigorated boom-in spite of coming Strait of Hormuz supply shocks and other mounting recession indicators-because investors are looking to what may become the biggest IPOs in history, courtesy of artificial intelligence. OpenAI, Anthropic, and most importantly SpaceX (which now owns xAI) all hope to hit the charts this year with trillion-dollar valuations, in an unprecedented global first. It may seem like a great opportunity to get more transparency from these notoriously private firms, but the opposite is likely to happen."
"The incoming IPO wave is rewriting stock market rules in real time so that companies can attract massive public investment with fewer safeguards, less transparency, and more risk pushed onto ordinary investors, as well as the funds that will determine how comfortably you'll be able to retire. SpaceX, which aims to debut in June and is estimating a public net worth of nearly $2 trillion, will not be like any other ticker."
"Per the terms of the filing, shareholders' ability to challenge CEO Elon Musk's decisions, whether through the board or the legal system, will be so limited as to make the chief executive all but invincible. Big banks have already been acquiescing to Musk's unusual demands, including paying up front for Grok subscriptions, thus juicing SpaceX's flagging A.I. revenue. (The megacorporation actually makes money from its satellite internet services and rocket contracts, but xAI, which includes X and Grok, is a on the company's revenue.)"
Investors are reacting to geopolitical and recession pressures with renewed stock market optimism, driven by expectations of major AI-related IPOs. OpenAI, Anthropic, and SpaceX are positioned for potentially unprecedented valuations, with SpaceX targeting a June debut and an estimated public net worth near $2 trillion. The IPO wave is expected to reduce safeguards and transparency while increasing risk exposure for ordinary investors and retirement outcomes. SpaceX’s filing indicates sharply limited shareholder ability to challenge CEO Elon Musk’s decisions through board or legal channels. Major banks have reportedly complied with Musk’s demands, including paying in advance for Grok subscriptions, supporting xAI-related revenue despite the company’s broader income sources.
Read at Slate Magazine
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