News & Updates
The latest news and updates from companies in the WLTH portfolio.
SpaceX's lofty IPO has serious earthbound problems, from emissions to water | Company Business News
Summary Data centers use water primarily for cooling their servers, which process enormous amounts of information. SpaceX envisions a future where AI data centers float effortlessly through space, powered by carbon-free solar panels. For now, the company's data center ambitions are earthbound, and operating them is very resource-intensive. It's causing problems that have exposed the company to legal claims and could hinder its growth. xAI, Elon Musk's artificial intelligence operation that was absorbed into SpaceX, built a data center in Memphis called Colossus that it says contains the world's largest supercomputer. The company is building two other data centers in the Memphis area, with the whole operation costing tens of billions of dollars. To get the data centers up and running fast, Musk trucked natural gas turbines to the site, creating his own makeshift power system that didn't go through the traditional regulatory process for power plants. But communities nearby complained that the plants were spewing pollutants. The NAACP sued in April, saying the natural gas turbines exposed black neighborhoods to harmful chemicals and violated the Clean Air Act. It's trying to get the turbines shut down. The suit is ongoing, and SpaceX says it "intends to defend itself vigorously in these actions."
Morgan Stanley expects SpaceX revenue to hit $3.4 trillion in 2040, WSJ reports
June 5 (Reuters) - Morgan Stanley (MS.N), opens new tab is projecting that SpaceX's revenue could reach $3.4 trillion in 2040, the Wall Street Journal reported on Friday, citing people familiar with the matter. The Wall Street giant is anticipating that revenue from SpaceX's AI business will dramatically grow in the coming years, the report said. Elon Musk's SpaceX began meeting with investors on Thursday in its IPO roadshow. The rocket and satellite maker is aiming to raise $75 billion, in what would be the biggest IPO ever. Morgan Stanley projects SpaceX's AI business will contribute around $190 billion in revenue in 2030, while total revenue is expected to be near $330 billion that year, the WSJ report said. In 2025, SpaceX's revenue jumped to $18.67 billion from $14.02 billion a year earlier, but the company swung to a net loss of $4.94 billion from a profit of $791 million. SpaceX's AI segment raked in $3.2 billion in revenue in 2025. Meanwhile, Goldman Sachs (GS.N), opens new tab is expecting revenue from SpaceX's AI division to surge to $322 billion by 2030, the Financial Times reported on Thursday. Morgan Stanley is among the lead underwriters for SpaceX's IPO, besides Goldman Sachs, BofA Securities, Citigroup and J.P. Morgan. A spokesperson for Morgan Stanley declined to comment. Reuters could not independently verify the report. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli Our Standards: The Thomson Reuters Trust Principles., opens new tab
SpaceX lands major AI deal with Google after Anthropic win ahead of IPO
SpaceX said on Friday it has entered into a multi-year cloud services agreement with Alphabet's Google, locking in computing capacity as it prepares for its highly anticipated U.S. stock market debut next week. As part of the deal, Google will pay SpaceX $920 million monthly from October this year to June 2029, with capacity ramping up through September at a reduced fee, Elon Musk's space venture said in a regulatory filing. The compute capacity provided includes about 110,000 Nvidia GPUs, CPUs, memory and other related components. The pact brings another high-profile customer to SpaceX, after Anthropic, strengthening its AI narrative as it targets a $75 billion raise in its upcoming initial public offering. Anthropic said in May it had reached a deal to use the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee, which houses more than 220,000 Nvidia processors and will give the Claude chatbot maker 300 megawatts of new capacity within a month. Also Read Best of BS Opinion: Can India's AI gap be a blessing in disguise? Why human credibility and authenticity, not AI scale, will define winnerspremium India's AI lag could shield it from a painful market reckoningpremium India's hidden AI winners as data-centre infrastructure demand surges Chinese, Hong Kong investors banned from SpaceX IPO on security grounds On an annual basis, SpaceX's compute access deals with Anthropic and Google are worth roughly $26 billion combined. SpaceX's disclosed compute-capacity agreements with Anthropic and Google are worth more than $70 billion in aggregate, assuming neither contract is terminated before its scheduled end date. If SpaceX does not provide access to the agreed number of GPUs by September 30, then, after a one-month grace period, "Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro-rata reduction in the monthly fees," the company said. After December 31, either party may terminate the agreement by providing 90 days' notice. Google will retain ownership of, and all intellectual property rights in, its content, AI models and associated data. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) More From This Section Govt's cybersecurity efforts get Anthropic's Claude Mythos boostpremium NASA reverses evacuation alert order for astronauts aboard space station Anthropic urges AI labs to pause development, warns of risks Airtel Priority Postpaid exposes blind spot in net neutrality framework Ads to algos: Are IG, Snapchat and YT becoming new digital shopping malls?
SpaceX blocked from early S&P 500 entry as index giant refuses to bend the rules
S&P Global's decision to maintain strict eligibility criteria means SpaceX faces at least a year-long wait after its IPO, while rival indices roll out the red carpet. S&P Global has drawn a line in the sand. The company announced on June 4 that it will not create exceptions to its S&P 500 eligibility criteria based solely on market capitalization, effectively blocking SpaceX from any fast-track entry into the world's most-watched stock index. The decision lands at a particularly awkward moment for Elon Musk's rocket company, which is gearing up for what could be the largest IPO in history. Under the unchanged rules, SpaceX must wait a minimum of 12 months after going public before it can even be considered for inclusion. The profitability problem The S&P 500 requires companies to post positive GAAP net income in their most recent quarter and across the prior four quarters combined. For SpaceX, that requirement is a significant obstacle. The company reported a $4.94 billion loss in 2025, meaning SpaceX would need to swing from nearly $5 billion in the red to demonstrable, sustained profitability before the S&P committee would even take a meeting. S&P Global's decision came after consultations with investors about whether to modify its financial viability, seasoning, and investable weight factor rules. Both Nasdaq and FTSE Russell have adjusted their own criteria to facilitate quicker inclusion of mega-cap IPOs. SpaceX's Bitcoin stash adds a crypto wrinkle Buried in SpaceX's S-1 filing is a detail that caught the crypto world's attention: the company disclosed holdings of 18,712 Bitcoin with a cost basis of $661 million. The Bitcoin disclosure matters for two reasons. First, it means SpaceX's balance sheet carries meaningful exposure to crypto price volatility, which could complicate its path to consistent GAAP profitability depending on how those holdings are marked. Second, it signals that SpaceX is philosophically aligned with the growing cohort of companies treating Bitcoin as a treasury asset. What this means for investors When a company joins the S&P 500, passive funds that track it are forced to buy shares, creating a wave of demand that historically drives prices higher. SpaceX needs to go public, wait 12 months, and then demonstrate four quarters of cumulative GAAP profitability. Given the $4.94 billion loss reported for 2025, even an optimistic scenario puts S&P 500 inclusion well into 2028 at the earliest. If Nasdaq or FTSE Russell adds SpaceX to their benchmarks faster, funds tracking those indices get exposure first, which could meaningfully shift flows away from S&P-linked products.
Anthropic (Claude) May Be the Only $1 Trillion IPO Worth Buying
With SpaceX potentially just days away from going public, I think many investors expected OpenAI, the parent company of ChatGPT, to be the next trillion-dollar initial public offering (IPO). However, Anthropic, the parent company of Claude, has beaten them to the punch. The company announced on June 1 that it has confidentially filed to go public with the U.S. Securities and Exchange Commission (SEC). Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " This filing allows the company to go public following the SEC's review, although Anthropic made it clear that whether it actually follows through with an IPO will depend on market conditions and other factors. While many details about the company remain unknown, Anthropic could end up being the only $1 trillion IPO worth buying. These trillion-dollar IPOs will launch with sky-high valuations Interestingly, Anthropic is planning an IPO after just announcing a $65 billion series H private funding round at a post-money valuation of $965 billion. Investors might have assumed that would give the company some runway, but perhaps the company wants to take advantage of strong market conditions for AI companies to raise more money at a higher valuation. Image source: Getty Images. The $965 billion valuation officially eclipsed OpenAI, which earlier this year closed a $122 billion private funding round at an $852 billion valuation. SpaceX, Anthropic, and OpenAI all promise to be game-changing companies and already have begun to change the game to an extent. But Anthropic could offer investors a more realistic valuation. SpaceX is not yet profitable and grew revenue 33% year over year in 2025 -- a massive increase for any company, but still perhaps slower than investors are looking for. With nearly $18.7 billion of revenue in 2025, SpaceX, at a $1.8 trillion valuation, would be asking for a trailing-12-month revenue multiple of 100x. Now, of course, these companies aren't going to be valued on fundamentals and could define new sectors with tremendous runways. The problem is that these valuations are baking in an incredible amount of success and may not account for roadblocks that could arise. In March, OpenAI reportedly hit a $25 billion annualized revenue run rate. Reports also suggest that the company will seek an IPO valuation of $1 trillion or more. If this were to be the case, it would be asking for a 40x forward revenue multiple because revenue run rate essentially annualizes one month's number. However, media reports earlier this year suggested that the company has been struggling to hit internal revenue targets. Furthermore, the company reportedly has $600 billion of data center commitments by 2030. Finally, as recently as April, media outlets reported that OpenAI is not expected to turn a profit until at least 2030. Anthropic is further along Anthropic has come a long way since the release of AI chatbots in 2022. OpenAI once looked like it had a lead that it would never surrender. However, Anthropic has now surpassed it in terms of valuation. Tools like Claude Code have resonated incredibly well, and enterprises appear to view Anthropic as the better large language model (LLM) company. The company also appears to have been more conservative with spending commitments. CEO Dario Amodei said on a podcast in February, "I think it is true we're spending somewhat less than some of the other players." Other media outlets have reported that the company expects to hit a nearly $50 billion annualized revenue run rate by the end of June, up from $30 billion in April, and turn an operating profit in the current quarter. That would be quite impressive. If Anthropic targeted a $1 trillion valuation in an IPO, it would only be asking investors for a 20x forward revenue multiple, half of what OpenAI would potentially request. The path to profitability also carries significant sway. Now, it's hard to know exactly what kind of valuation Anthropic will target, given its success. People betting on Polymarket, however, are placing a 53% chance (as of June 3) that the stock closes its first day of trading at a market cap over $1.8 trillion. This isn't necessarily the IPO valuation Anthropic is looking for, but what the market would assign it after having its first chance to buy the stock. Obviously, there is still a lot we don't know, and investors will want to review the company's registration statement before making a determination. But right now, there is a chance Anthropic goes public at a valuation much more reasonable than SpaceX or OpenAI's. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 968%* -- a market-crushing outperformance compared to 211% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks " *Stock Advisor returns as of June 5, 2026. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Anthropic (Claude) May Be the Only $1 Trillion IPO Worth Buying
With SpaceX potentially just days away from going public, I think many investors expected OpenAI, the parent company of ChatGPT, to be the next trillion-dollar initial public offering (IPO). However, Anthropic, the parent company of Claude, has beaten them to the punch. The company announced on June 1 that it has confidentially filed to go public with the U.S. Securities and Exchange Commission (SEC). Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " This filing allows the company to go public following the SEC's review, although Anthropic made it clear that whether it actually follows through with an IPO will depend on market conditions and other factors. While many details about the company remain unknown, Anthropic could end up being the only $1 trillion IPO worth buying. These trillion-dollar IPOs will launch with sky-high valuations Interestingly, Anthropic is planning an IPO after just announcing a $65 billion series H private funding round at a post-money valuation of $965 billion. Investors might have assumed that would give the company some runway, but perhaps the company wants to take advantage of strong market conditions for AI companies to raise more money at a higher valuation. The $965 billion valuation officially eclipsed OpenAI, which earlier this year closed a $122 billion private funding round at an $852 billion valuation. SpaceX, Anthropic, and OpenAI all promise to be game-changing companies and already have begun to change the game to an extent. But Anthropic could offer investors a more realistic valuation. SpaceX is not yet profitable and grew revenue 33% year over year in 2025 -- a massive increase for any company, but still perhaps slower than investors are looking for. With nearly $18.7 billion of revenue in 2025, SpaceX, at a $1.8 trillion valuation, would be asking for a trailing-12-month revenue multiple of 100x. Now, of course, these companies aren't going to be valued on fundamentals and could define new sectors with tremendous runways. The problem is that these valuations are baking in an incredible amount of success and may not account for roadblocks that could arise. In March, OpenAI reportedly hit a $25 billion annualized revenue run rate. Reports also suggest that the company will seek an IPO valuation of $1 trillion or more. If this were to be the case, it would be asking for a 40x forward revenue multiple because revenue run rate essentially annualizes one month's number.
Google to buy computing from SpaceX at $920 million per month
SpaceX has secured a significant cloud-services deal with Google, agreeing to a monthly payment of $920 million for computing power through mid-2029. This agreement, covering approximately 110,000 NVIDIA GPUs and other components, aims to meet surging customer demand for Google's AI products. Google has agreed to pay Elon Musk's SpaceX $920 million a month for computing power as part of a cloud-services deal. According to a Securities Exchange Commission (SEC) filing by SpaceX, the deal runs through mid-2029. As per the agreement, Google will pay SpaceX the monthly fee from October through June 2029, with capacity ramping up through September at a reduced cost. In case SpaceX fails to deliver the access to the 'guaranteed' Nvidia chips as part of the deal by September 30, Google has the right to terminate the contract, with a one-month grace period. SpaceX has announced the deal just days before the company's stock is expected to start trading on the Nasdaq exchange. As per the SEC filing, the Google-SpaceX compute deal covers "approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components." From the looks, the deal appears similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that Anthropic agreed to pay SpaceX $1.25 billion per month through the year 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee that Elon Musk's company xAI originally built for its own artificial intelligence efforts. SpaceX has not so far revealed which specific data center Google would be using. With these deals, Anthropic and Google will be paying a combined $2.17 billion per month for compute capacity to SpaceX. What SpaceX SEC filing says on Google deal "On June 5, 2026, we entered into a Cloud Service Agreement with Google with respect to access to compute capacity. The customer has agreed to pay us $920 million per month from October 2026 through June 2029, with capacity ramping up through September at a reduced fee. The compute capacity provided includes approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice. The customer will retain ownership of, and intellectual property rights in, its content, Al models, and related data," reads SpaceX's SEC filing. Google on compute deal with Elon Musk's SpaceX In a statement, a Google representative described the deal as a result of unexpected demand for its recently launched AI products. "Google Cloud and SpaceX are long-time partners," Google said in a statement. It added, "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." Incidentally, Google is a longtime investor in SpaceX. Its stake in Elon Musk's company is expected to be worth more than $100 billion after the IPO. The companies are also reportedly in talks to try to build orbital data centers -- a major component of SpaceX's future plans. Google CEO Sundar Pichai too has spoken about the company's interest in Space data centers.
Rocket company turned AI landlord: SpaceX lands US$30b Google computing deal
(New users only) It's tax relief season! Get up to RM300 when you save with Versa! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. WASHINGTON, June 6 -- SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company US$920 million (RM3.704 billion) per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing. The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models. The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then. The agreement runs through June 2029, implying total payments of roughly US$30 billion (RM120.81 billion) over the life of the contract. The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for US$1.25 billion (RM5.034 bullion) a month. The facilities were originally built to power Musk's rival AI venture, xAI. SpaceX's IPO filing revealed that xAI last year posted an operating loss of US$6.4 billion (RM25.77 billion) on total revenue of US$3.2 billion (RM12.89 billion). "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP. The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice." The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at US$1.8 trillion (RM7.25 trillion). That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars. -- AFP
SpaceX, OpenAI and Anthropic: What the IPO pipeline means for portfolios - ETF Express
Richard Flax, Chief Investment Officer at Moneyfarm, writes that with the SpaceX Initial Public Offering (IPO) due to price on June 12th, and Anthropic and OpenAI waiting in the wings, his team wanted to dig into the implications for their portfolios. First, it's worth highlighting that we invest predominantly in ETFs. Those ETFs track indices, whose composition adjusts over time as companies enter or exit financial markets. As a result, we've seen a good amount of attention focused on the way that these index providers account for newly listed companies. Different index providers have followed different approaches. For instance, Standard & Poor's 500 (the stock market index tracking the performance of 500 leading companies in the United States) has historically had a stricter approach than the Nasdaq, calling for 12 months of history as a listed company and four consecutive quarters of profitability before they could be included. The Nasdaq has generally allowed companies to enter its indices much sooner. At the same time, S&P is also on the verge of softening its approach. On June 8th, it is likely to determine that a company can be included in the S&P 500 only six months after listing, regardless of whether it has shown accounting profits. SpaceX, as a reminder, is looking to sell at a valuation of around 100x forward revenue. That's a very high multiple on its current, loss-making business, whatever you think of its prospects in the future - something we highlighted a couple of weeks ago (along with many others). Let's turn back to our portfolios. Most of our US equity exposure tracks the S&P 500, while a smaller portion tracks the Nasdaq. If S&P changes its rules on June 8th, then we could see SpaceX included in that index towards the end of 2026. SpaceX is likely to be included in the Nasdaq 100 by the end of June, or in early July. In terms of its weighting in the index, there are various rules (around things like the free float - how much of the stock is available to trade), but we think that SpaceX would have a weight of around 1.5 per cent in the Nasdaq 100. The largest Nasdaq exposure in our portfolios is around 5.5% (in a 100% equity portfolio), suggesting that the weight of SpaceX in that portfolio would be around 8 basis points or 0.08 per cent of the overall portfolio. We'd argue that's not a significant direct impact, at least for now, although we would need to consider how that might change if and when SpaceX enters the S&P 500. What about indirect impacts? There are a few points to consider here. As we've noted before, investors will likely need to raise cash to invest in these new IPOs, possibly by selling other stocks. SpaceX is also not the only company looking for capital, after all. Anthropic and OpenAI also look set to launch their processes, while Alphabet (Google) recently announced that it would raise USD80 billion by selling shares to fund its investments in Artificial Intelligence (AI). It's a reminder of how much capital these companies are investing on the AI build-out. There is also a signalling issue. If executives with the deepest understanding of their companies' future prospects are choosing to sell shares, investors may reasonably ask what that implies about current valuations. And what does it mean for the equity market overall? It's a familiar question and a fair one when we consider all the enthusiasm around AI and the amount of money that companies are looking to raise and spend. But we should remember that all these listed businesses IPOed at some point. They raise cash in order to continue innovating and growing, scaling up their businesses. This is also an opportunity for public equity investors to participate in the next phase of these companies' growth. As with any IPO, the crucial question is whether the valuation being asked today is justified by the company's long-term prospects. That is the debate surrounding SpaceX, just as it was for Facebook when it listed at a USD100 billion valuation - a price that many investors considered excessive at the time. Today, it looks rather different. So where does this leave us? We're going to see a number of large companies try to raise equity capital in the coming days and months, and that raises questions about how the equity market reacts. It's an important reminder that market expectations can become elevated even if the long-term outlook proves to be robust. In the immediate term, we don't think that the SpaceX listing will have a material direct impact on our portfolios - since we expect the weight of the stock will be small overall, at least for the next few months. But the combination of increased equity issuance and high expectations means that we're monitoring these moves very closely, and we'll adjust the portfolios if we see the need to do so.
Elon Musk's SpaceX paid to secure its ticker symbol ahead of blockbuster IPO
SpaceX paid Tuttle Capital Management to relinquish the ticker symbol "SPCX" ahead of the Elon Musk company's highly anticipated IPO, MarketWatch has learned. The confirmation by a person familiar with the transaction settles weeks of speculation after Tuttle abruptly changed the ticker symbol of one its ETFs from "SPCX" to "SPCK" in April. That decision sparked speculation that the Musk-controlled company had paid Tuttle for the trading symbol. Most Read from MarketWatch The person spoke on condition of anonymity and would not discuss the dollar figure involved in the transaction. In a post on X published Thursday, the official SpaceX account thanked Tuttle Capital for the ticker symbol SPCX. Short, memorable ticker symbols are often viewed as valuable branding material, particularly during high-profile IPOs. In a reply to Musk on X late last year, Matt Tuttle, the founder of Tuttle Capital, indicated he would be open to giving up the ticker symbol. Tuttle Capital's SPAC & New Issue ETF SPCK launched in December 2020, according to SEC filings. It traded under the symbol "SPCX" until April 7, when it officially began trading under the "SPCK" symbol. The ETF has about $7 million in assets under management, according to FactSet data. SpaceX did not immediately respond to a request for comment. The company said in an amended regulatory filing on Wednesday that it expected to go public at $135 per share, which would make it the biggest IPO in history. That puts the company on track for a nearly $1.75 trillion market valuation. See: SpaceX officially set to crush global records in targeting massive IPO haul of up to $86 billion The price is subject to change as the IPO draws closer and the company gets a clearer sense of demand.
The SpaceX IPO Will Ripple Across Indexes and Funds. Here's What That Means -- and Doesn't Mean.
* FTSE Russell, Nasdaq, and S&P Dow Jones Indices have decided, through their respective consultations, what they'll do about new mega-cap companies going public. * In the most immediate terms, one thing that means is that shares of SpaceX, expected to hit markets soon, won't jump quickly into popular S&P 500 index funds. Elon Musk's rocket startup is getting the Very Important IPO treatment -- with some caveats. Major index providers, including the LSEG's FTSE Russell and the Nasdaq, have made it easier for new mega-cap stocks to land in their indexes. Those moves come ahead of expected offerings from SpaceX, as well as AI companies with massive private valuations, and they have some investors worried that the guardians of major market benchmarks were relaxing standards to stay relevant. Space Exploration Technologies, or SpaceX, which could list next week under the symbol "SPCX," could gain fast-entry into some popular indexes, meaning buying from the funds that track those measures. Just not the S&P 500, which underpins the funds in which the great American investing public is most heavily invested. WHY THIS MATTERS TO YOU When SpaceX lands in public markets, its impact will likely be felt across a swath of investment funds, whether investors in those products wanted shares or not. S&P Dow Jones Indices, a subsidiary of S&P Global, on Thursday said it won't make the proposed changes to eligibility criteria that would have shortened the seasoning period required before companies can join the benchmark index and eased financial requirements to make room for new companies with huge market valuations. (That means SpaceX, but likely also companies like Anthropic and OpenAI.) The decision to keep unchanged rules governing the S&P 500, as well as the S&P MidCap 400, and S&P SmallCap 600, followed a committee's "review of the markets and after consideration of responses received from a wide range of market participants." Companies that want in will have to meet current profitability and public float requirements and have a listing history of at least 12 months to be considered. In other words: Size won't be the determining factor to get into the S&P. That doesn't preclude mega-cap companies from getting fast-tracked into other S&P products, such as the S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, neither of which have financial viability requirements for inclusion. (Some S&P indexes will also now see relaxed requirements for float, which could also ease entry for certain companies.)
SpaceX signs $920 million monthly cloud compute deal with Google ahead of IPO - Cryptopolitan
Both deals bolster SpaceX's financials ahead of its planned IPO targeting a $75 billion raise. SpaceX is primed to receive a whopping $920 million per month from Google, so the latter can make use of its AI cloud computing facilities, according to an SEC filing today. This gives Elon Musk's rocket, AI, and satellites company another major cloud customer weeks before its planned IPO. The agreement runs from October 2026 through June 2029 and covers roughly 110,000 Nvidia GPUs along with CPUs, memory, and related infrastructure, according to the SEC filing. Compute capacity is expected to increase gradually till September at a lower cost before reaching the full monthly rate. SpaceX AI cloud business in demand The Google deal follows a similar arrangement SpaceX struck with Anthropic in May, where the Claude chatbot maker got full access to the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee. This facility houses more than 220,000 Nvidia processors and provides 300 megawatts of capacity, according to Reuters. Together, the two contracts represent more than $70 billion in total value, provided neither is terminated early before its scheduled end date. On an annual basis, both deals are also worth a total of $26 billion. SpaceX has widely mentioned a target of $75 billion in its upcoming initial public offering, and the company's revenue story and outlook can only be further strengthened by these moves to lock in long-term, high-value AI compute customers. Termination factors and terms The contract can be terminated early in specific cases and these terms have been put in to serve as protections for Google. Google can terminate the agreement after a one-month grace period if SpaceX fails to deliver the agreed number of GPUs by September 30, 2026, or accept whatever capacity SpaceX has delivered at that date for a proportionally reduced fee, according to the filing. After December 31, either side can exit the deal with 90 days' notice. The filing also stated that all intellectual property rights in content and AI models, in addition to all data processed on the infrastructure will belong to Google. GPUs upon GPUs The competition for GPU capacity has continued to grow at an alarming rate, and this deal only proves how crazy the competition has become among companies building large AI systems. Google operates its own massive data center network and custom TPU chips, and in spite of this, still has to pay nearly $1 billion a month to rent Nvidia hardware from another big tech company. For SpaceX, the AI cloud compute hardware industry represents a new revenue stream distinct from its rocket and Starlink satellite businesses. The Colossus facility in Memphis, originally built to serve Musk's own xAI venture, is now generating billions in annual revenue from outside customers.
Anthropic (Claude) May Be the Only $1 Trillion IPO Worth Buying
With SpaceX potentially just days away from going public, I think many investors expected OpenAI, the parent company of ChatGPT, to be the next trillion-dollar initial public offering (IPO). However, Anthropic, the parent company of Claude, has beaten them to the punch. The company announced on June 1 that it has confidentially filed to go public with the U.S. Securities and Exchange Commission (SEC). This filing allows the company to go public following the SEC's review, although Anthropic made it clear that whether it actually follows through with an IPO will depend on market conditions and other factors. While many details about the company remain unknown, Anthropic could end up being the only $1 trillion IPO worth buying. These trillion-dollar IPOs will launch with sky-high valuations Interestingly, Anthropic is planning an IPO after just announcing a $65 billion series H private funding round at a post-money valuation of $965 billion. Investors might have assumed that would give the company some runway, but perhaps the company wants to take advantage of strong market conditions for AI companies to raise more money at a higher valuation. The $965 billion valuation officially eclipsed OpenAI, which earlier this year closed a $122 billion private funding round at an $852 billion valuation. SpaceX, Anthropic, and OpenAI all promise to be game-changing companies and already have begun to change the game to an extent. But Anthropic could offer investors a more realistic valuation. SpaceX is not yet profitable and grew revenue 33% year over year in 2025 -- a massive increase for any company, but still perhaps slower than investors are looking for. With nearly $18.7 billion of revenue in 2025, SpaceX, at a $1.8 trillion valuation, would be asking for a trailing-12-month revenue multiple of 100x. Now, of course, these companies aren't going to be valued on fundamentals and could define new sectors with tremendous runways. The problem is that these valuations are baking in an incredible amount of success and may not account for roadblocks that could arise. In March, OpenAI reportedly hit a $25 billion annualized revenue run rate. Reports also suggest that the company will seek an IPO valuation of $1 trillion or more. If this were to be the case, it would be asking for a 40x forward revenue multiple because revenue run rate essentially annualizes one month's number. However, media reports earlier this year suggested that the company has been struggling to hit internal revenue targets. Furthermore, the company reportedly has $600 billion of data center commitments by 2030. Finally, as recently as April, media outlets reported that OpenAI is not expected to turn a profit until at least 2030. Anthropic is further along Anthropic has come a long way since the release of AI chatbots in 2022. OpenAI once looked like it had a lead that it would never surrender. However, Anthropic has now surpassed it in terms of valuation. Tools like Claude Code have resonated incredibly well, and enterprises appear to view Anthropic as the better large language model (LLM) company. The company also appears to have been more conservative with spending commitments. CEO Dario Amodei said on a podcast in February, "I think it is true we're spending somewhat less than some of the other players." Other media outlets have reported that the company expects to hit a nearly $50 billion annualized revenue run rate by the end of June, up from $30 billion in April, and turn an operating profit in the current quarter. That would be quite impressive. If Anthropic targeted a $1 trillion valuation in an IPO, it would only be asking investors for a 20x forward revenue multiple, half of what OpenAI would potentially request. The path to profitability also carries significant sway. Now, it's hard to know exactly what kind of valuation Anthropic will target, given its success. People betting on Polymarket, however, are placing a 53% chance (as of June 3) that the stock closes its first day of trading at a market cap over $1.8 trillion. This isn't necessarily the IPO valuation Anthropic is looking for, but what the market would assign it after having its first chance to buy the stock. Obviously, there is still a lot we don't know, and investors will want to review the company's registration statement before making a determination. But right now, there is a chance Anthropic goes public at a valuation much more reasonable than SpaceX or OpenAI's.
Wall St Week Ahead Blockbuster SpaceX IPO set to test high-flying US stocks rally
NEW YORK, June 5 (Reuters) - The long-awaited, massive SpaceX initial public offering is expected next week, a major event for the U.S. stock market, with investors wary of possible overexuberance. Stock indexes fell on Friday as strong jobs data ignited fears of hawkish monetary policy and semiconductor shares tumbled after a torrid run. The benchmark S&P 500 (.SPX), opens new tab posted a weekly decline after nine straight weeks of gains. The S&P 500 was still up about 8% in 2026, including a 16% rebound since its late-March low for the year. "Nothing has stuck in terms of pessimism in the last two months," said Mark Hackett, chief market strategist for Nationwide. "There is just this underpinning of momentum, this insatiable appetite for tech holdings and just the technical buying spree that is really dwarfing almost all other inputs." Next week, investors will also assess fresh data on consumer and producer prices, after the jobs report fueled fears that the Federal Reserve would focus on calming inflation, potentially leading to interest rate hikes. The coming week also brings earnings reports from key companies in the technology sector, which has driven the market's recent surge despite a sour end to the week. Some investors have been bracing for a pause, if not a pullback, after the sharp rally. Risks include the U.S.-Israeli war with Iran and the potential for renewed spikes in energy prices if Middle East tensions flare. SPACEX IN SPOTLIGHT Elon Musk's SpaceX is aiming to raise $75 billion, the most ever for an IPO, in a deal that would value it at $1.75 trillion. Pricing is expected on June 11, with trading to begin on the Nasdaq the next day. The company has an unusual and diverse set of businesses, including rockets, satellite communications and AI computing. Adding in the involvement of Musk -- Tesla's (TSLA.O), opens new tab leader and the world's wealthiest man -- and SpaceX's valuation is tricky to pin down, rising to exorbitant levels by some measures. The company posted a net loss of $4.94 billion in 2025, even as revenue rose 33% to $18.67 billion. The IPO could lure significant attention from retail investors and provide another high-profile way to gain exposure to the AI trade. "We've got one of the biggest IPOs in history coming ... which I think is the focus of everybody's interest," said Jason Pride, chief of investment strategy and research at Glenmede. "The question mark surrounding it is whether it's an indication of market froth." SpaceX's debut is expected to be followed by other mega IPOs in the coming months from Anthropic and OpenAI, two of the AI leaders. Anthropic, which makes the Claude chatbot, said this week it has confidentially filed for a U.S. IPO. The SpaceX IPO is "an important benchmark," said Matt Wittmer, a portfolio manager at Allspring Global Investments, adding that "the company itself will be playing in some of those key areas that people are looking for to find new secular growth opportunities." CPI DATA DUE, ORACLE, ADOBE TOO The May Consumer Price Index, due on Wednesday, will show how surging oil and gasoline prices are influencing inflation. One concern is the extent to which higher energy prices might be affecting other CPI components, Pride said, ahead of the Federal Reserve's meeting this month. "The Federal Reserve is going to be watching this like a hawk," Pride said. "They're going to want to see those pieces continue to remain stable and not increase as a pass-through from the energy and food prices." In the wake of the spike in energy prices, futures are factoring in a greater chance the Fed raises interest rates this year rather than cuts, after markets had anticipated equity-friendly rate decreases at the start of 2026. Other economic data next week includes Thursday's report on producer prices. Quarterly reports from tech companies Oracle (ORCL.N), opens new tab and Adobe (ADBE.O), opens new tab will also be in focus. Tech has long dominated the U.S. stock market, but the sector's recent outperformance pushed it to more than 39% of the S&P 500's market capitalization this week, its highest share on record. The results will test the strength of the tech trade and the rebound in the software industry, which was hit hard to start the year on concerns about AI disruptions. Shares of Oracle are up more than 9% this year, while Adobe is down 28%. "Getting more data points from some of the AI value chain is going to be important," Wittmer said. Reporting by Lewis Krauskopf; Editing by Colin Barr and Rod Nickel Our Standards: The Thomson Reuters Trust Principles., opens new tab
Jamie Dimon called Elon Musk the 'Edison of our time' as JPMorgan hosted SpaceX's $75 billion IPO road show -- and even invited Musk's mom
As Elon Musk prepares for what will likely be the biggest listing in history, some top-tier bankers assisting with SpaceX's public debut are lining up to sing Musk's praises ahead of the big day. SpaceX is targeting a price of $135 per share when the company goes public -- which could happen as early as next week. Such pricing could raise a record-setting $75 billion, and potentially turn Musk into the world's very first trillionaire. A successful IPO would also likely be very good business for the legion of banks gearing their investors up for a potentially blockbuster series of public listings throughout the rest of the year. And one unlikely ally on his side is JPMorgan Chase CEO Jamie Dimon, who, despite their public feud years ago, is now singing Musk's praises. "Elon is the Edison of our time," Dimon said during a virtual interview with Musk Thursday, part of a road show event hosted by the bank at its Manhattan headquarters and attended by several thousands of the bank's high-net-worth clients. "It's been an extraordinary 24 years watching Elon grow over time, and now making a massive leap into the future," Dimon said during the event. The interview opened with an in-person special guest appearance by his mother, Maye Musk, who similarly lavished praise on her son, noting his seemingly prodigal vision of the future as a child. "When you were 3 years old, and I told people, 'I have a genius son,' they would roll their eyes," she said. "When you said you wanted to start with rockets, then I rolled my eyes. And then, you did it." A congratulatory introduction from his mother is one thing, but Dimon's words might have surprised Musk just a few years ago. The pair were involved in a well-publicized feud -- that included a $162 million lawsuit filed by JPMorgan against Tesla, Musk's electric car company, in 2021 over an alleged contract breach regarding stock warrants. The bank dropped its lawsuit last year. But Dimon started putting on a charm offensive as early as the World Economic Forum meeting in January of this year, well before SpaceX's lucrative IPO was a reality. "The guy is our Einstein," Dimon said of Musk during a CNBC interview at Davos, adding that the two had patched up their disagreement. "I'd like to be helpful to him and his companies as much as we can," Dimon said. In April, SpaceX would go on to confidentially file for an IPO. To navigate the blockbuster offering, SpaceX has tapped some of Wall Street's most elite names to underwrite, publicize, and advise on the entire affair. Earlier this year, SpaceX reportedly was working with at least 21 banks in preparation for the IPO, including heavyweights such as JPMorgan Chase, Morgan Stanley, Goldman Sachs, and Bank of America. Over the past few months, these institutions have taken on the job of pitching investors, distributing shares ahead of the public listing date, and creating buzz for the company and its mission.
Elon Musk's SpaceX secures $920 million monthly Google deal for cloud compute capacity- Explained | Company Business News
Google has deepened its partnership with SpaceX through a significant infrastructure deal that will see the search giant pay the rocket company $920 million each month for access to computing power spanning nearly three years. The agreement represents one of the most substantial commitments to date by a major technology firm for SpaceX's growing data centre operations, underscoring how aggressively Elon Musk's enterprise is pivoting toward artificial intelligence infrastructure as it prepares for an expected initial public offering. The contract includes provisions allowing either party to exit the arrangement after a 90-day notice period beginning in 2027, providing flexibility for both organisations as their infrastructure needs evolve. "Google Cloud and SpaceX are long-time partners. This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." The characterisation of the deal as temporary suggests Google views the arrangement as a means of addressing immediate demand whilst it expands its own data centre infrastructure. The emphasis on "bridge capacity" indicates the company expects to reduce or eliminate its dependence on SpaceX's systems once internal capacity is scaled. Both agreements reflect what SpaceX characterised in its regulatory filing as a deliberate business model: "This structure allows us to monetise unused compute capacity in our infrastructure, while still permitting reallocation of the capacity for our own internal initiatives if needed in the future." An Anthropic spokesperson confirmed the monthly figure to Business Insider. Tom Brown, the AI laboratory's compute chief, disclosed in May that the Colossus infrastructure would be deployed for inference operations -- the computational work required for AI models to generate outputs based on user inputs. The magnitude of GPU acquisition costs has prompted SpaceX to consider manufacturing its own processors -- a move that would position the company as a direct competitor to Nvidia, which maintains overwhelming dominance in the market for high-end graphics processing units. SpaceX lists "manufacturing our own GPUs" within its disclosure of "substantial capital expenditures" the organisation intends to undertake. By selling hundreds of megawatts of computing capacity to Anthropic and now Google, SpaceX has begun to function as a competitor to Google Cloud itself. The dynamics grow more complex given that Google is engaged in discussions with SpaceX to assist with the development of orbital data centres -- a venture that could position Google as both customer and collaborator. The Google and Anthropic agreements represent the opening salvo in what SpaceX clearly intends as a much broader assault on the compute infrastructure sector. As the company prepares for what is anticipated to be a record-breaking public listing, these deals provide both immediate revenue and proof of concept that major technology firms are willing to pay premium rates for computing capacity sourced from outside the traditional cloud infrastructure providers.
Veteran investor says SpaceX, Anthropic IPO frenzy behind Bitcoin selloff
Bitcoin's decline, which began after the Oct. 10, 2025 flash crash, entered a more volatile phase this week after Strategy (Nasdaq: MSTR), the world's largest corporate holder of Bitcoin, revealed it sold Bitcoin last week for the first time in years. U.S. spot Bitcoin ETFs had already recorded net outflows of $2.43 billion in May. To make situation worse, it's only been four days into June, and investors have pulled another $1.40 billion from the funds. Jeffrey Park says investors rotating capital from Bitcoin to IPOs But veteran investor and Bitwise advisor Jeffrey Park believes the recent weakness in Bitcoin runs deeper than Strategy's sale or ETF outflows. In a June 4 post on X, Park said he does not believe Bitcoin is falling because Strategy sold 32 BTC. Instead, he argued that investors are rotating capital into what he described as "the market's upcoming hot ball of money trades." According to Park, some investors are moving funds out of Bitcoin to position for high-profile IPOs, including shares of SpaceX and Anthropic. "This means in the future, the correlation breakdown will itself become the fuel," he predicted. What the investor is implying is that these IPOs are going to be hottest trades of the year and Bitcoin is paling in comparison. Trending on TheStreet Roundtable: Grayscale's research head expects SpaceX IPO to shift Bitcoin treasury dynamics Elon Musk's SpaceX is anticipated to be the largest IPO in market history. The company is reportedly seeking to raise at least $75 billion at a valuation between $1.75 trillion and $2 trillion. When the company filed the Form S-1 with the Securities and Exchange Commission (SEC) on May 20 to make its public debut, it disclosed holding 18,712 Bitcoin on its balance sheet as of Dec. 31, 2025. Though Park believes these IPOs are drawing capital out of Bitcoin, Grayscale's research head Zach Pandl predicted last month that given the kind of treasury SpaceX holds, its IPO could normalize Bitcoin as a mainstream treasury asset for large, operationally complex companies. In fact, Pandl argued that the SpaceX IPO could herald the era of diversified businesses holding Bitcoin on their balance sheets. But pure-play digital asset treasuries (DATs) like Strategy could decline over time, he predicted.
SpaceX boosts Japan fundraising target to $2.5B as retail demand surges ahead of historic IPO
The Elon Musk-led rocket company increased its Japanese share allocation by 25%, part of what could become the largest public offering ever. SpaceX just made its Japanese IPO tranche bigger. The company revised its fundraising target for Japan-based investors from $2B to $2.5B, a 25% jump driven by what it describes as strong retail investor demand in the country. The update came via a Japanese regulatory filing in early June 2026, and it signals something broader: international appetite for SpaceX shares is running hot enough to force the company to revise its plans upward before subscription registration even opens. What the Japanese tranche looks like Japanese investors will get access to roughly 14.8 million to 18.5 million Class A shares, priced at an initial reference of about $135 per share. Subscription registration for the Japanese segment was set to begin around June 6, 2026. The Japan allocation sits inside a much larger offering. SpaceX is targeting a listing on the Nasdaq under the ticker SPCX, and the company's estimated valuation is approaching $1.75 trillion. The total IPO raise could exceed $75B, which would make it the largest initial public offering in history by a wide margin. Saudi Aramco's 2019 IPO raised about $25.6B. SpaceX is aiming to roughly triple that. The Bitcoin connection SpaceX's May 2026 SEC S-1 filing revealed that the company holds 18,712 BTC on its balance sheet as part of its corporate treasury. Those Bitcoins were acquired for $661 million. At the time of the filing, their fair market value sat at approximately $1.45B. That's a paper gain of nearly $800 million, or roughly a 120% return on the initial investment. The risk, of course, is that a Bitcoin price decline could create headline risk for SpaceX post-listing. A 30% drop in BTC would wipe roughly $400 million off the fair value of those holdings. For a company valued at $1.75 trillion, that's a rounding error. But markets don't always think in proportions.
SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power
SpaceX revealed in a regulatory filing on Friday that Google will pay it $920 million a month for computing power, pumping billions of dollars into Elon Musk's rocket company as it prepares for a blockbuster initial public offering. The agreement, which starts in October and runs through June 2029, could earn SpaceX about $30 billion in total. It also helps establish SpaceX -- which owns Mr. Musk's artificial intelligence lab, xAI -- as a major infrastructure provider as companies compete in a fierce global race to dominate A.I. As part of the agreement, Google will gain access to about 110,000 A.I. chips from Nvidia, which Google said would help it meet larger-than-expected customer demand for its A.I. models. The tech giant said in April that its cloud business had contracts totaling $460 billion that had yet to be fulfilled as revenue, indicating enormous demand for its services. "Google Cloud and SpaceX are longtime partners," a Google Cloud spokesman said in a statement. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." SpaceX did not immediately respond to a request for comment. SpaceX reached a similar deal last month to provide Anthropic, another leading A.I. lab, with computing power. Anthropic, which is also expected to go public this year, is paying SpaceX $1.25 billion a month. SpaceX is expected to go public next week in a deal that could value the company at more than $1.7 trillion and make Mr. Musk a trillionaire. As part of that process, the company has shed more light on its financial details in recent weeks to entice investors. Mr. Musk has built a massive supercomputer in Memphis to power xAI. But the company has largely lagged behind competitors like OpenAI, Anthropic and Google. In the run-up to SpaceX's going public, Mr. Musk has increasingly leaned into A.I. He has promoted xAI's computing power as an asset, demonstrating that it can be turned into revenue through deals with Anthropic and Google. Mr. Musk has also announced details of a giant chip factory he's building in Texas. And in April, SpaceX announced a $60 billion deal to acquire the A.I. start-up Cursor, which makes a code-writing assistant. The deal with Google deepens ties between the search giant and the rocket maker. Google owns a roughly 5 percent stake in SpaceX, and has explored the possibility of using SpaceX as a launch partner as Google seeks to put data centers in space, an effort known as Project Suncatcher. Kate Conger is a technology reporter based in San Francisco. She can be reached at [email protected]. The post SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power appeared first on New York Times.
SpaceX lands Google AI compute deal after Anthropic pact ahead of IPO
The pact brings another high-profile customer to SpaceX, after Anthropic, strengthening its AI narrative as it targets a $75 billion raise in its upcoming initial public offering. SpaceX said on Friday it has entered into a multi-year cloud services agreement with Alphabet's Google, locking in computing capacity as it prepares for its highly anticipated U.S. stock market debut next week. As part of the deal, Google will pay SpaceX $920 million monthly from October this year to June 2029, with capacity ramping up through September at a reduced fee, Elon Musk's space venture said in a regulatory filing. The compute capacity provided includes about 110,000 Nvidia GPUs, CPUs, memory and other related components. The pact brings another high-profile customer to SpaceX, after Anthropic, strengthening its AI narrative as it targets a $75 billion raise in its upcoming initial public offering. Anthropic said in May it had reached a deal to use the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee, which houses more than 220,000 Nvidia processors and will give the Claude chatbot maker 300 megawatts of new capacity within a month. On an annual basis, SpaceX's compute access deals with Anthropic and Google are worth roughly $26 billion combined. SpaceX's disclosed compute-capacity agreements with Anthropic and Google are worth more than $70 billion in aggregate, assuming neither contract is terminated before its scheduled end date. If SpaceX does not provide access to the agreed number of GPUs by September 30, then, after a one-month grace period, "Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro-rata reduction in the monthly fees," the company said. After December 31, either party may terminate the agreement by providing 90 days' notice. Google will retain ownership of, and all intellectual property rights in, its content, AI models and associated data.
