News & Updates
The latest news and updates from companies in the WLTH portfolio.
SpaceX sets stage for biggest IPO in history with Nasdaq debut
NEW YORK CITY, New York: SpaceX is preparing for what could become the largest initial public offering in history, a deal that may push founder Elon Musk's net worth beyond the $1 trillion mark. The space and satellite company said it plans to sell 555.6 million shares at $135 each in its upcoming stock market debut, raising up to $75 billion and valuing the company at approximately $1.77 trillion. If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO. At the proposed valuation, SpaceX would rank among the world's most valuable companies, with only a handful of firms currently worth more. The filing also highlights the degree of control Musk will retain after the company goes public. Through his ownership of 5.22 billion Class B shares, each carrying 10 votes, Musk would hold 82.4% of the company's voting power as chief executive officer, chief technical officer and chairman. According to Forbes, Musk's net worth currently stands at about $826 billion, including a SpaceX stake valued at $542 billion based on a previous company valuation of $1.25 trillion. A valuation of $1.77 trillion would significantly increase the value of those holdings and potentially make him the world's first trillionaire, though much of his wealth remains tied to stock. Despite the eye-popping valuation, SpaceX continues to post substantial losses. The company reported an operating loss of $2.6 billion last year on revenue of $18.7 billion, and losses continued during the opening months of this year. The company's IPO prospectus outlines ambitions that stretch far beyond its current rocket launches and satellite business. Among its long-term goals are returning humans to the moon and eventually establishing a permanent settlement on Mars. The document describes plans for "a permanent human colony" on the planet with "at least one million inhabitants" to help ensure humanity's survival against threats that could lead to "the same fate as the dinosaurs." Artificial intelligence also plays a central role in SpaceX's future plans. The company estimates AI-related opportunities could eventually generate as much as $26.5 trillion in revenue, though many of those projections depend on technologies that do not yet exist, including data centers operating in space. Analysts say AI will be critical not only to SpaceX but also to Musk's broader business empire. Dan Ives of Wedbush Securities said he expects Tesla and SpaceX to merge next year, creating a company heavily focused on artificial intelligence, robotics and autonomous systems. Not everyone is convinced that SpaceX will immediately emerge as a major AI player. IDC analyst Arnal Dayaratna said the company's AI offerings currently lag behind competitors. Its chatbot Grok is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," Dayaratna said. SpaceX plans to use proceeds from the IPO to expand AI infrastructure, grow its rocket business and strengthen the Starlink satellite network. The company expects to list on Nasdaq under the ticker symbol "SPCX" and could begin trading as early as next week. The offering is also expected to pave the way for anticipated public listings by AI companies Anthropic and OpenAI. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.
Record SpaceX listing targets $75 billion raise and $1.77T value
If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO NEW YORK CITY, New York: SpaceX is preparing for what could become the largest initial public offering in history, a deal that may push founder Elon Musk's net worth beyond the $1 trillion mark. The space and satellite company said it plans to sell 555.6 million shares at $135 each in its upcoming stock market debut, raising up to $75 billion and valuing the company at approximately $1.77 trillion. If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO. At the proposed valuation, SpaceX would rank among the world's most valuable companies, with only a handful of firms currently worth more. The filing also highlights the degree of control Musk will retain after the company goes public. Through his ownership of 5.22 billion Class B shares, each carrying 10 votes, Musk would hold 82.4% of the company's voting power as chief executive officer, chief technical officer and chairman. According to Forbes, Musk's net worth currently stands at about $826 billion, including a SpaceX stake valued at $542 billion based on a previous company valuation of $1.25 trillion. A valuation of $1.77 trillion would significantly increase the value of those holdings and potentially make him the world's first trillionaire, though much of his wealth remains tied to stock. Despite the eye-popping valuation, SpaceX continues to post substantial losses. The company reported an operating loss of $2.6 billion last year on revenue of $18.7 billion, and losses continued during the opening months of this year. The company's IPO prospectus outlines ambitions that stretch far beyond its current rocket launches and satellite business. Among its long-term goals are returning humans to the moon and eventually establishing a permanent settlement on Mars. The document describes plans for "a permanent human colony" on the planet with "at least one million inhabitants" to help ensure humanity's survival against threats that could lead to "the same fate as the dinosaurs." Artificial intelligence also plays a central role in SpaceX's future plans. The company estimates AI-related opportunities could eventually generate as much as $26.5 trillion in revenue, though many of those projections depend on technologies that do not yet exist, including data centers operating in space. Analysts say AI will be critical not only to SpaceX but also to Musk's broader business empire. Dan Ives of Wedbush Securities said he expects Tesla and SpaceX to merge next year, creating a company heavily focused on artificial intelligence, robotics and autonomous systems. Not everyone is convinced that SpaceX will immediately emerge as a major AI player. IDC analyst Arnal Dayaratna said the company's AI offerings currently lag behind competitors. Its chatbot Grok is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," Dayaratna said. SpaceX plans to use proceeds from the IPO to expand AI infrastructure, grow its rocket business and strengthen the Starlink satellite network. The company expects to list on Nasdaq under the ticker symbol "SPCX" and could begin trading as early as next week. The offering is also expected to pave the way for anticipated public listings by AI companies Anthropic and OpenAI. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.
Record SpaceX listing targets $75 billion raise and $1.77T value
If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO NEW YORK CITY, New York: SpaceX is preparing for what could become the largest initial public offering in history, a deal that may push founder Elon Musk's net worth beyond the $1 trillion mark. The space and satellite company said it plans to sell 555.6 million shares at $135 each in its upcoming stock market debut, raising up to $75 billion and valuing the company at approximately $1.77 trillion. If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO. At the proposed valuation, SpaceX would rank among the world's most valuable companies, with only a handful of firms currently worth more. The filing also highlights the degree of control Musk will retain after the company goes public. Through his ownership of 5.22 billion Class B shares, each carrying 10 votes, Musk would hold 82.4% of the company's voting power as chief executive officer, chief technical officer and chairman. According to Forbes, Musk's net worth currently stands at about $826 billion, including a SpaceX stake valued at $542 billion based on a previous company valuation of $1.25 trillion. A valuation of $1.77 trillion would significantly increase the value of those holdings and potentially make him the world's first trillionaire, though much of his wealth remains tied to stock. Despite the eye-popping valuation, SpaceX continues to post substantial losses. The company reported an operating loss of $2.6 billion last year on revenue of $18.7 billion, and losses continued during the opening months of this year. The company's IPO prospectus outlines ambitions that stretch far beyond its current rocket launches and satellite business. Among its long-term goals are returning humans to the moon and eventually establishing a permanent settlement on Mars. The document describes plans for "a permanent human colony" on the planet with "at least one million inhabitants" to help ensure humanity's survival against threats that could lead to "the same fate as the dinosaurs." Artificial intelligence also plays a central role in SpaceX's future plans. The company estimates AI-related opportunities could eventually generate as much as $26.5 trillion in revenue, though many of those projections depend on technologies that do not yet exist, including data centers operating in space. Analysts say AI will be critical not only to SpaceX but also to Musk's broader business empire. Dan Ives of Wedbush Securities said he expects Tesla and SpaceX to merge next year, creating a company heavily focused on artificial intelligence, robotics and autonomous systems. Not everyone is convinced that SpaceX will immediately emerge as a major AI player. IDC analyst Arnal Dayaratna said the company's AI offerings currently lag behind competitors. Its chatbot Grok is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," Dayaratna said. SpaceX plans to use proceeds from the IPO to expand AI infrastructure, grow its rocket business and strengthen the Starlink satellite network. The company expects to list on Nasdaq under the ticker symbol "SPCX" and could begin trading as early as next week. The offering is also expected to pave the way for anticipated public listings by AI companies Anthropic and OpenAI. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.
Anthropic urges AI labs to pause development, warns humans risk losing control
Anthropic is calling on major artificial intelligence labs to consider a coordinated and verifiable pause in development, warning that rapid advances in the technology could soon allow AI systems to improve themselves faster than society can manage the risks. The Claude creator said AI's ability to complete tasks on its own has been doubling roughly every four months and it was headed for "recursive self-improvement", the point at which the technology can improve without human intervention. "If systems are capable of fully building their own successors, the ways we secure them, monitor them, and shape their behavior all grow much more important," the startup said in a lengthy blog post on Thursday, adding that a pause would allow society to "deal with its immense implications." "We are not there yet, and recursive self-improvement is not inevitable. But it could come sooner than most institutions are prepared for," Anthropic co-founder Jack Clark and Anthropic Institute lead Marina Favaro wrote in the post. Fears that advanced AI systems may get out of human control and cause societal harm have risen as the technology becomes increasingly capable. Anthropic's own Mythos model sent shockwaves through industries including banking and software earlier this year with its ability to find vulnerabilities in existing code. But regulation has been slow, especially in the US where most leading AI labs are based. A Trump administration executive order earlier this week put the onus on the labs themselves, asking them to voluntarily submit their most capable models for government cybersecurity testing before public release. AI researchers have also urged a pause before but had little success. Elon Musk, who owns AI lab xAI, was among backers of a 2023 push by the non-profit Future of Life Institute to halt AI development for six months to allow time for safety guardrails. Anthropic has long positioned itself as a safety-focused AI lab. Earlier this year, it refused to let the US military use its models for domestic surveillance and fully autonomous weapons, prompting backlash from the government which put it on a national security blacklist, set to take effect later in 2026. Reuters reported on Friday the dispute was showing signs of easing across parts of the US government. Still, Anthropic has continued to release increasingly powerful models and in February walked back a key safety pledge, saying that it would no longer hold back potentially dangerous AI if rivals were close to matching its capabilities. It was recently valued at $965 billion in a massive funding round and confidentially filed for a US initial public offering on Monday, putting it ahead of rival OpenAI in both valuation and the race to secure crucial funding. Coordinated action Anthropic's Thursday post cautioned that unilateral or poorly coordinated slowdowns could backfire if less cautious actors continue advancing, potentially reducing overall safety. It said that a meaningful pause would require agreement among "multiple well-resourced labs" operating at the technological frontier, as well as rules on what conditions would trigger or lift such a pause and who would oversee it. "A unilateral pause by one lab, by contrast, is achievable immediately, but accomplishes much less: it would change who the front-runner is, but it would not create the wider deliberative process that is currently missing," the startup said.
Anthropic and White House ease tensions ahead of potential $1 trillion IPO
After being blacklisted as a national security risk, the AI company and Trump administration are finding common ground just as Anthropic prepares for one of the largest public offerings in history. Getting blacklisted by the federal government is generally not the kind of pre-IPO momentum a company hopes for. But Anthropic, the AI company behind Claude, appears to be turning what could have been a deal-killer into a diplomatic reset. The White House and Anthropic are actively working to de-escalate a standoff that erupted earlier this year, when the company refused to let the US military deploy its AI models for domestic surveillance or fully autonomous weapons systems. The government's response was swift: it classified Anthropic as a national security supply-chain risk. Now, with a confidential IPO filing reportedly submitted around June 1, 2026, and a potential valuation reaching $1 trillion, both sides have strong incentives to play nice. How we got here The rift between Anthropic and the Trump administration traces back to a fundamental disagreement about what AI should and shouldn't do. Anthropic drew a hard line against allowing Claude to be used in certain military applications, specifically domestic surveillance and autonomous weaponry. Washington's response was to designate Anthropic a supply-chain risk earlier in 2026, making it harder for federal agencies and their contractors to do business with the company. The turning point came in mid-April 2026, when CEO Dario Amodei made a visit to the White House. That meeting appears to have opened a channel for productive dialogue after months of tension. Since then, Anthropic's leadership has been in heightened discussions with multiple government agencies, including the White House and the Department of the Treasury. Anthropic hasn't rolled over, though. The company is simultaneously challenging its blacklisting through legal channels, contesting the supply-chain risk designation in court. The IPO that could reshape AI markets The confidential IPO filing, projected for around June 1, 2026, targets a valuation as high as $1 trillion. Anthropic's path to public markets also puts it in a cohort with other massive private tech companies like OpenAI and SpaceX, both of which have been navigating their own complex relationships with regulators and government agencies. What this means for investors The supply-chain risk designation is worth watching closely. Even as diplomatic channels improve, the legal challenge is still active. Investors should pay attention to whether the designation gets formally lifted before the IPO or whether Anthropic goes public while still technically on the blacklist. The risk that deserves attention is what happens if the détente doesn't hold. Anthropic's IPO prospectus will almost certainly flag regulatory risk as a material concern, and for a company seeking a trillion-dollar valuation, how investors price that risk carries implications measured in hundreds of billions of dollars.
Anthropic's Valuation Just Hit $965 Billion. These 2 Magnificent AI Stocks Are the Real Winners
Anthropic just became the latest artificial intelligence (AI) giant to announce an upcoming initial public offering. The AI lab joins Cerebras Systems, which launched last month, and SpaceX, which is aiming for a June 12 market debut. Anthropic hasn't yet decided on a potential date or other specifics; instead, it started the process by filing confidentially with the Securities and Exchange Commission on June 1. In recent years, Anthropic has gained the attention of investors as it competes with OpenAI -- these players are the developers of popular AI assistants, Claude and ChatGPT, respectively. Both of these AI labs have expressed interest in launching IPOs in recent times after raising billions of dollars in funding. 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 " And speaking of funding, Anthropic's valuation just hit $965 billion ahead of its market debut. This clearly is good news for the company -- but it's not the only winner. These two magnificent AI stocks may be the real winners. Anthropic's clues about growth So first, a quick note about Anthropic. As mentioned, it's the company behind Claude, coding assistant Claude Code, and other products. We have limited information about Anthropic's earnings since it isn't yet publicly traded, so it doesn't have to issue reports. But in recent times, the company has offered us some clues about its growth. Last month, Anthropic said it's seen ongoing growth in global enterprise adoption of Claude since its Series G funding round in February -- and its annual revenue run rate just hit $47 billion. In February, the run rate was $14 billion, and the company, at that time, said that three years prior, it hadn't yet earned $1 in revenue. Meanwhile, due to this growth in customers, Anthropic must invest in compute to support Claude and its development -- it's significantly increased capacity in recent weeks. All of this shows tremendous growth in a relatively short period of time, and it's not surprising that professional investors have rushed to get in on the story in the private market. Now, let's consider the two tech companies that may be significantly benefiting from Anthropic's soaring valuation -- and they are Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). For a few reasons. First, these companies are both investors in Anthropic, so they benefit as the company's value rises. Amazon in April said it was investing $5 billion in Anthropic right away, after having already invested $8 billion in the past. And the e-commerce and cloud computing services giant said it would invest as much as $20 billion in the future, depending on the achievement of commercial milestones.
Project Glasswing: Key cybersecurity agencies set to get access to Anthropic's Mythos
US artificial intelligence company Anthropic is extending access to its closely guarded cybersecurity initiative, Project Glasswing, to a select set of organisations in India, including key government entities that are responsible for safeguarding cybersecurity across sectors like banking, telecom, and power, The Indian Express has learned. Government agencies such as the Indian Cyber Crime Coordination Centre (I4C); Indian Computer Emergency Response Team (CERT-In); National Critical Information Infrastructure Protection Centre (NCIIPC); and the Department of Telecommunications' Digital Intelligence Platform (DIP) are among the state-owned entities that are understood to have received access to Anthropic's advanced frontier AI model Mythos. Anthropic is also said to have extended access to some cybersecurity-focused research institutions in India, while discussions are underway on providing Mythos Preview to dedicated cybersecurity and AI teams within some of the country's largest IT services companies, a senior government official said on condition of anonymity. Also Read | What is Claude Mythos, and why is Anthropic limiting its rollout? This move comes as part of Anthropic's announcement that it would expand Project Glasswing beyond its initial cohort of participants in the US and UK to more than 15 countries, including India. Under the programme, vetted organisations are granted access to Claude Mythos Preview, an unreleased AI model that Anthropic says is capable of identifying critical software vulnerabilities at a level that could fundamentally alter the balance between cyber attackers and defenders. The company has so far restricted access to the model, citing concerns that its capabilities could be misused if released publicly. The official added that NCIIPC, which falls under the National Security Advisor in the Prime Minister's Office, and CERT-In had requested access to Mythos to identify vulnerabilities within India's critical infrastructure such as banking and power. The Indian Express had earlier reported that the Indian government was in conversations with Anthropic's senior leadership in the US for assistance in gaining access to the model. Anthropic did not respond to a request for comment. Also Read | Anthropic launches Project Glasswing to test advanced AI for cybersecurity "Following several weeks of close collaboration with our Project Glasswing partners, the security industry, open-source software maintainers, and the US government, we're extending the partnership to approximately 150 new organisations. Each one will need to meet our security requirements before they gain access... The organisations in this new group are based in more than 15 countries, and most provide critical infrastructure to many more," Anthropic said in a blog post. Story continues below this ad The new entities with which it is planning to share Mythos Preview operate in industries such as power, water, healthcare, communications, and hardware, Anthropic said. And many of the new partners are vendors - companies or non-profits that maintain codebases that are relied upon by lots of other organisations around the world, including governments. Explained Firewalling systems AI model Mythos can detect critical software vulnerabilities. This matters for India as it shields vital infrastructure like banking and power, even as Anthropic battles the US Pentagon over boundaries of AI misuse. Concerned about the potential impact that Mythos could have on India's critical infrastructure, Finance Minister Nirmala Sitharaman, in April, held a high-level meeting, along with IT Minister Ashwini Vaishnaw to assess risks posed by the powerful model to the country's banking sector. Also Read | Anthropic blunder exposes 2,000 lines of Claude Code's internal source code: What it reveals During the meeting, the banking sector was asked to take pre-emptive steps to safeguard their systems from the AI model. Sitharaman directed the Indian Banks' Association (IBA) to develop a coordinated institutional mechanism to respond swiftly and effectively to any such threat. She also directed banks to engage the best available cybersecurity professionals and specialised agencies "to continuously strengthen the defensive and monitoring capabilities of the banks". Also Read | Anthropic's Claude can now use your computer like a human: Will it replace OpenClaw? On June 4, Financial Times reported that Anthropic is helping the US National Security Agency deploy Mythos for "offensive cyber operations, embedding engineers inside the agency." FT quoted a source as saying that "Mythos would be useful for infiltrating the networks of nations such as China or Iran." This comes despite the Silicon Valley start-up's legal battle with the US Defence department, which includes the NSA. Story continues below this ad Anthropic drew a red line around Claude AI models to restrict US government's use for mass surveillance of US citizens and lethal autonomous drones. That prompted a backlash, with the Pentagon calling the AI lab a "supply-chain risk" -- a first for a US business. Anthropic has sued over this designation. Last week, Anthropic filed for an initial public offering in the US that is set to value it at more than $1 trillion.
Record SpaceX listing targets $75 billion raise and $1.77T value
If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO NEW YORK CITY, New York: SpaceX is preparing for what could become the largest initial public offering in history, a deal that may push founder Elon Musk's net worth beyond the $1 trillion mark. The space and satellite company said it plans to sell 555.6 million shares at $135 each in its upcoming stock market debut, raising up to $75 billion and valuing the company at approximately $1.77 trillion. If completed as planned, the offering would eclipse the $26 billion raised by Saudi Aramco in 2019, currently the world's largest IPO. At the proposed valuation, SpaceX would rank among the world's most valuable companies, with only a handful of firms currently worth more. The filing also highlights the degree of control Musk will retain after the company goes public. Through his ownership of 5.22 billion Class B shares, each carrying 10 votes, Musk would hold 82.4% of the company's voting power as chief executive officer, chief technical officer and chairman. According to Forbes, Musk's net worth currently stands at about $826 billion, including a SpaceX stake valued at $542 billion based on a previous company valuation of $1.25 trillion. A valuation of $1.77 trillion would significantly increase the value of those holdings and potentially make him the world's first trillionaire, though much of his wealth remains tied to stock. Despite the eye-popping valuation, SpaceX continues to post substantial losses. The company reported an operating loss of $2.6 billion last year on revenue of $18.7 billion, and losses continued during the opening months of this year. The company's IPO prospectus outlines ambitions that stretch far beyond its current rocket launches and satellite business. Among its long-term goals are returning humans to the moon and eventually establishing a permanent settlement on Mars. The document describes plans for "a permanent human colony" on the planet with "at least one million inhabitants" to help ensure humanity's survival against threats that could lead to "the same fate as the dinosaurs." Artificial intelligence also plays a central role in SpaceX's future plans. The company estimates AI-related opportunities could eventually generate as much as $26.5 trillion in revenue, though many of those projections depend on technologies that do not yet exist, including data centers operating in space. Analysts say AI will be critical not only to SpaceX but also to Musk's broader business empire. Dan Ives of Wedbush Securities said he expects Tesla and SpaceX to merge next year, creating a company heavily focused on artificial intelligence, robotics and autonomous systems. Not everyone is convinced that SpaceX will immediately emerge as a major AI player. IDC analyst Arnal Dayaratna said the company's AI offerings currently lag behind competitors. Its chatbot Grok is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," Dayaratna said. SpaceX plans to use proceeds from the IPO to expand AI infrastructure, grow its rocket business and strengthen the Starlink satellite network. The company expects to list on Nasdaq under the ticker symbol "SPCX" and could begin trading as early as next week. The offering is also expected to pave the way for anticipated public listings by AI companies Anthropic and OpenAI. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.
Hadron Energy Announces NRC Acceptance of Quality Assurance Program Description for Future Manufacturing License Applications, a First for a Light-Water Microreactor
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Hadron Energy, Inc. (Nasdaq: HDRN) ("Hadron Energy" or the "Company"), an advanced nuclear technology company, today announced that the staff of the U.S. Nuclear Regulatory Commission (NRC) has issued a final safety evaluation finding Revision 3 of the Company's Topical Report (TR), "Hadron Energy, Inc. Quality Assurance Program Description" (QAPD), acceptable for referencing in its future licensing applications under 10 CFR Part 52. The NRC staff's final safety evaluation concludes that Hadron Energy's QAPD complies with applicable NRC regulations and industry standards in support of a future 10 CFR Part 52 application. The acceptance establishes a vetted quality assurance framework spanning the full life cycle of the Hadron Micro-Modular Reactor — including design, manufacturing, construction, operations, and decommissioning — and reflects Hadron Energy's integrated role as designer, manufacturer, and owner-operator. While it is not a license to construct or operate a reactor, and it does not constitute NRC review, approval, or certification of the Hadron Micro-Modular Reactor design, the NRC’s acceptance of the Topical Report is a foundational, programmatic regulatory milestone. Furthermore, Hadron Energy is the first light-water microreactor company to receive acceptance by the NRC of QAPD. A rigorous quality assurance program is foundational to the safe and reliable deployment of nuclear technology. By establishing an NRC-vetted quality framework at the pre-application stage, Hadron Energy is instituting the disciplined design, manufacturing, construction, and operational controls that underpin nuclear safety from the outset. The QAPD applies a graded, lifecycle-wide approach in which the level of control for any item or activity is commensurate with its safety significance, reinforcing Hadron Energy's commitment to building and operating its reactors to rigorous, independently reviewed industry quality standards, including ASME NQA-1-2022. "The NRC staff's acceptance of our Quality Assurance Program Description is a critical milestone for Hadron Energy and the development of our Micro-Modular Reactor," said Sam Gibson, Founder and Chief Executive Officer of Hadron Energy. "A quality assurance program that the NRC staff finds acceptable provides a vetted foundation that we can reference as we advance our licensing strategy, helping reduce duplicative review of previously accepted material in future applications, and most importantly provide the confidence to the company’s conceptual reactor design framework as we move toward the first of a kind deployment.” Standardizing Future Licensing Pathways Hadron Energy’s QAPD addresses the full lifecycle of the Hadron Micro-Modular Reactor. The program is based on Appendix B to Title 10 of the Code of Federal Regulations (10 CFR) Part 50 and commits to nuclear industry quality standards, including ASME NQA-1-2022, as endorsed by NRC Regulatory Guide 1.28, Revision 6. Consistent with standard NRC practice, the NRC staff has requested that Hadron Energy publish the accepted version of the Topical Report within three months of its receipt of the NRC's notification, which Hadron Energy will do. This publicly accessible version will incorporate the NRC's correspondence and final safety evaluation and will carry the official "-A" (designated accepted) suffix following the report identification number. With the QAPD accepted by the NRC staff, Hadron Energy may cite the accepted program in subsequent licensing applications under 10 CFR Part 52, including a Combined License (COL) or a Manufacturing License, to the extent specified and subject to the limitations and conditions in the safety evaluation. Referencing previously accepted material is intended to avoid repetitive NRC review of that material in future applications. About Hadron Energy, Inc. Hadron Energy, Inc. (Nasdaq: HDRN) is an advanced nuclear technology company focused on developing the Halo Micro-Modular Reactor (MMR), a 10 megawatt-electric (MWe) factory-manufactured, transportable light-water reactor. Engineered to deliver continuous, emission-free baseload power and heat with a multi-year refueling cycle, Hadron Energy aims to meet the growing demand for clean, scalable, and rapidly deployable energy solutions. As an integrated designer, manufacturer, and owner-operator, the Company is dedicated to powering a variety of critical sectors, including data centers, industrial facilities and heavy manufacturing, remote communities, and grid stabilization. For more information, visit www.hadronenergy.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding Hadron Energy’s regulatory filings with the NRC, its path to approval of its license application, the design of Hadron Micro-Modular Reactor, and the expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the business combination. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of Hadron Energy in light of their respective experience and perception of historical trends, current conditions and expected future developments as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting Hadron Energy will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the ability of Hadron Energy to continue to meet the Nasdaq listing standards, and that Hadron Energy will have sufficient capital to operate as anticipated. Should one or more of these risks or uncertainties materialize, or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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
Anthropic urges industry coordination to allow for a 'pause' in AI development if risks grow
AI company Anthropic suggests top firms pause advanced development. This is due to rapid improvements that could lead to humans losing control. Rival OpenAI believes governments should set rules. AI systems might soon build their own successors. This milestone brings benefits but also risks. Researchers also warn of AI-powered cyber threats. A pause would allow societal structures to catch up. Anthropic is proposing that the world's top artificial intelligence companies come up with a coordinated way to pause development of advanced AI systems, warning the technology is improving so quickly there's a risk humans would lose control. The company behind the Claude chatbot said in a blog post Thursday that as cutting-edge AI gets increasingly faster at carrying out tasks, "it would be good for the world to have the option to slow or temporarily pause" its development. Anthropic said its internal research institute plans to explore the issue in collaboration with others and "take actions" to help build the systems for a credible slowdown or pause, without being more specific. Anthropic rival OpenAI argued for a different approach in a report published Wednesday, saying that "democratic governments - not private companies acting alone - must ultimately determine the rules, safeguards, and accountability mechanisms." "Our view is that decisions about the pace of AI innovation should not be left to any one lab, company, or special interest group," it said. AI models are getting faster, with rapid increases in how quickly they can carry out software tasks like coding on their own, Anthropic said in its post. Based on current trends and given enough computing power, an AI system could be able to design and develop its own successor, in what is known as "recursive self-improvement." Self-building AI would be a major technological milestone that would bring benefits in science, healthcare and other areas, Anthropic said, but it "also might increase the risks of humans losing control over AI systems." Some tech industry figures have long warned of such a scenario. Anthropic's post comes after a different warning this week from a team of researchers at the University of Toronto who showed how AI tools could be used to create a new kind of AI "worm" that adapts its hacking strategy as it spreads from device to device and takes over a vast computing network. "I think it's really important that people understand that it's not just the biggest, most powerful language models that pose the security concerns," lead researcher Nicolas Papernot said in an interview. The authors of the Anthropic post, company co-founder Jack Clark and Marina Favaro, head of its research institute, said the pause would be used to enable "societal structures and alignment research" to keep up with AI advances. Alignment is industry shorthand for making sure the technology matches human values and intentions. The proposed coordination would let advanced AI labs verify that global rivals have actually stopped or slowed their work, "and that a bad actor could not use the auspices of a coordinated slowdown to jump ahead in secret." The company said a coordinated global mechanism is needed because without it a slowdown in AI development could let the "least cautious" players catch up and add to pressure on companies and governments as they make tough choices about AI safety. Anthropic's post comes as the company and ChatGPT-maker OpenAI race to sell shares on the stock market, in an IPO that could value Anthropic at nearly a trillion dollars. Papernot notified Canadian cybersecurity authorities prior to releasing his report, which shows how researchers developed the worm in a laboratory by using an "open-source" AI tool that is easy for software developers to cheaply access and modify. "In the past, cyber attackers would focus on targets that are very high value," he said. "Banking systems, hospitals, electricity grids, water treatment systems, schools." Papernot agreed that there should be more collaboration between companies, government agencies and academic researchers to develop countermeasures as AI-powered hacking tools supercharge the search for computer vulnerabilities. "That old laptop you have in your basement that you don't check on regularly doesn't seem like a very high-value target, but It can be used as a launch pad to attack these higher-value targets," he said. "Anything connected to the internet is now at risk because of how low the cost has become to mount these cyberattacks."
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.
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.)
