News & Updates
The latest news and updates from companies in the WLTH portfolio.
SpaceX IPO is valued at up to $1.75tn, Morningstar flags overvaluation
SpaceX is set to list on Nasdaq with a target around $1.5-1.8 trillion valuation. Morningstar and CNBC reports have raised questions about profitability, potential dilution, and governance given Elon Musk's control. Analysts warn the IPO could be overvalued and advise investors to consider later entry points after more shares enter the market. What's behind the headline? Market valuation and governance * SpaceX faces a high valuation based on future opportunities, including AI infrastructure and space-based data centers, which Morningstar and Morningstar UK have cast as uncertain and potentially overoptimistic. * The dominance of Elon Musk, who controls a large voting stake, raises governance concerns that analysts say could affect long-term value. * Analysts expect a near-term price pop but caution that ins and outs of insiders' selling may pressure the stock after the IPO. What to watch next * Market participation in IPOs of megacaps like SpaceX is shifting as indices and funds adjust rules for entry and liquidity. * The trajectory of SpaceX's AI products and Starlink profitability will be key catalysts for post-IPO performance. * Any mergers, dilution events, or regulatory moves will shape the stock's medium-term risk/reward profile. How we got here SpaceX is pursuing a historic IPO, aiming to raise about $75 billion and reach a multi-trillion-dollar valuation. The company's filings show ongoing losses but substantial revenue, with bets on Starlink, Grok, and future space-to-ai ventures. Analysts caution that profitability and governance risks loom, and market enthusiasm may outpace fundamentals. Our analysis CNBC reports on S&P Dow Jones rules and SpaceX's profitability thresholds; The Independent surveys Morningstar's valuation assumptions and governance concerns; Business Insider UK covers Morningstar's fair value assessment; TechCrunch highlights potential equity dilution in future transactions. Go deeper * Will SpaceX's IPO actually deliver the $75B+ fundraise? * How will Musk's voting power affect future corporate actions? * What does Morningstar's valuation imply for retail investors at the IPO?
Wall Street giants tout SpaceX in glitzy pre-IPO investor events - AOL
(Corrects ticker symbol for SpaceX in paragraph 1) By Tatiana Bautzer and Nupur Anand NEW YORK, June 4 (Reuters) - Wall Street's investment banking giants are feting investors at splashy investor events that kicked off on Thursday, giving hopeful SpaceX buyers something most banks can't: access to the rocketmaker's top executives ahead of its blockbuster IPO next week. Elon Musk's futuristic IPO, which bases its lofty valuation on sci-fi concepts like colonizing Mars and data centers in space, has captured the imagination - and wallets - of Wall Street and investors clamoring for a piece of the action. Bank of America, JPMorgan and Morgan Stanley are all hosting events over the next few days. With plans to raise a record $75 billion, it would be the largest of all time. At an expected $1.75 trillion market capitalization, the company will immediately become one of the most valuable listed names worldwide. Bank of America, which is leading the retail distribution effort in the U.S., decked out the lobby at its midtown Manhattan headquarters with SpaceX rockets and other images for an event Thursday for wealth management clients, a person familiar with the matter said. The event will be headed by Co-President Jim DeMare, who will interview SpaceX President and Chief Operating Officer Gwynne Shotwell and CFO Bret Johnsen about the company's public trading debut, according to a person with knowledge of the matter. It was not clear if Musk would participate in any way. The bank also plans to light the building's spire Thursday night to resemble a rocket ship taking off. MAKING THE ROUNDS Shotwell and Johnsen are also making the rounds at JPMorgan's recently opened, bronze-toned headquarters just a 15-minute walk away, where CEO Jamie Dimon is headlining a similar event, also on Thursday. More than 2,500 clients are expected to attend in what will be the first such event for the bank at this scale. JPMorgan also played a video of a SpaceX rocket launch on Thursday on repeat across wide screens at its headquarters along with the words "Go for Launch" projected several feet high across the lobby. Bank of America's private bank and Merrill Lynch have invited more than 5,000 clients to market launch parties being hosted by the bank and streamed to offices across the U.S. as part of the Merrill presence. On Monday, Morgan Stanley is hosting an event for its wealth management clients featuring SpaceX executives along with Kate Claassen, the lead banker in the IPO, and wealth management head Jed Finn. It was not clear if Goldman Sachs was organizing an event similar to its well-heeled rivals for its wealth management clients. The bank is also showcasing SpaceX model rockets in two lobbies in its downtown Manhattan headquarters to mark the stock debut. Typically, Goldman Sachs does offer large deals to its private wealth clients, according to people familiar with the matter. (Reporting by Tatiana Bautzer and Nupur Anand, Additional reporting by Saeed Azhar and Akash Sriram; Editing by Megan Davies, Dawn Kopecki, Andrea Ricci and David Gaffen)
Anthropic calls for pause of global AI development
New York - Artificial intelligence company Anthropic suggested Thursday a global pause on building the most powerful AI systems as the latest models are beginning to show signs they could escape human control. The San Francisco-based company, which makes the Claude family of AI models, said in a report that a worldwide slowdown in cutting-edge AI development would "likely be a good thing" -- but warned that if only one company stopped, rivals would simply race ahead. "We believe it would be good for the world to have the option to slow or temporarily pause frontier AI development to enable societal structures and alignment research to keep up with the advance of the technology," it said. Getting a real pause to work would mean multiple major AI companies in multiple countries -- most notably the US and China -- all agreeing to stop at the same time, under rules everyone could actually verify, Anthropic said. "Without a global coordination mechanism, companies and governments will have to make difficult decisions about safety while under competitive and geopolitical pressures," it said. The company has faced pushback from others in the industry -- and officials in the White House -- who say its focus on worst-case scenarios overstates the risks and amounts to a strategy for slowing rivals under the cover of safety concerns. Still, the White House has acknowledged the power of the company's Mythos model -- which has not been made available to the general public due to its cybersecurity capabilities and is currently deployed only to a small number of vetted organizations. The proposal would face an uphill battle in Washington and Silicon Valley, where US officials and tech executives have repeatedly argued that any slowdown in AI development risks handing China a decisive strategic edge in what many see as the defining technology race of the century. US President Donald Trump, however, said he discussed the possibility of cooperating with China on AI safety issues during his recent visit to Beijing. Trump also signed an executive order this week that allows the government 30 days to conduct a preliminary review of the most powerful US AI models before their release. - 'Human role narrowing' - Anthropic compared the problem to nuclear arms control treaties -- but said it would be even harder to get a handle on, since AI training is far easier to hide than a missile silo, and the temptation to quietly keep going would be enormous. The company said it plans to bring together government officials, scientists, advocacy groups and competing AI firms in coming months to figure out how such a system could work. The call for coordination comes alongside internal data showing that AI is already dramatically speeding up the development of AI itself, Anthropic said. That acceleration creates a feedback loop that Anthropic warned could eventually lead to what researchers call "recursive self-improvement." That's the idea of an AI system that becomes capable of essentially teaching itself to get smarter, without much human help. "We are not there yet, and recursive self-improvement is not inevitable," the report said, while adding that it could arrive sooner than most governments and institutions are ready for. "The evidence suggests that the human role is narrowing at each step in the AI development process," the company said.
SpaceX IPO: rockets, AI losses and Musk in control
Washington - SpaceX is inviting investors to bet on Elon Musk's vision of AI data centers in space and humans on Mars. It's gamble that comes with limited voting rights, restricted ability to sue, and a business that is currently losing billions of dollars a year. - Magic touch - Musk's celebrity and his track record turning Tesla and SpaceX into global giants have earned him a reputation as the man who sees where technology is heading -- and builds a world-class business from it. The sky-high valuation for SpaceX -- nearly $1.8 trillion -- is based on the idea that his legendary run will continue and that Musk can achieve his goal of data centers in space and putting people on Mars. But nothing at the core of the business as it stands today lines up with that valuation, with the company growing fast but losing money. Revenue hit $18.7 billion in 2025 -- up 33 percent from the year before -- but costs grew even faster, producing a net loss of $4.9 billion. In the first quarter of 2026, it lost another $4.3 billion. Yet SpaceX's IPO filing claims it could pull in over $28.5 trillion in revenue. The real money, in SpaceX's telling, is in internet connectivity through its Starlink satellite service and above all artificial intelligence, provided by data centers rocketed into space. Yet xAI -- the AI unit of SpaceX -- has struggled to keep pace with rivals. Its standalone AI revenue stands at around $500 million, a fraction of OpenAI's and Anthropic's revenue. - Musk in control - Musk will keep an iron grip on the rocket and AI giant even after it brings in a legion of new investors. Ordinary investors who buy SpaceX stock will get what are called Class A shares, which give them one vote each on company decisions. Musk, meanwhile, holds a different kind of share -- Class B -- that carries 10 votes apiece. His votes will simply swamp everyone else's with about 82 percent of the total voting power in the company. Known as a dual-class structure, tech giants like Google, Meta and Snap have used the same playbook to keep their founders in charge after going public. - Don't sue me - Frustrated by years of shareholder lawsuits against publicly traded Tesla, Musk has ensured that SpaceX is built inside a legal fortress. SpaceX requires shareholder lawsuits to be filed in a specialized Texas business court. If a judge refuses, disputes go to private arbitration with no jury and no class actions -- stripping investors of the main legal tool used to take on large corporations. The filing acknowledges there is "risk" a court could reject these provisions if challenged, but until one does, that is the rule. - Regular investor - Tapping into his legion of fans, SpaceX will set aside 30 percent of the IPO shares for everyday investors, not just big Wall Street firms. In a normal IPO, institutions usually get most of the shares, so this is a bigger-than-usual chance for regular people to buy in. Why does that matter? Because it changes who gets to own the stock on day one. If more shares go to individual investors, the company is trying to spread ownership beyond hedge funds and mutual funds, some of whom may balk at the company's financials. It can also make the stock more volatile at first. If a lot of excited people rush to buy, the price can jump quickly. - No choice but to buy - More than 60 percent of US stocks are owned by passive funds that copy a market index like the Nasdaq 100. Nasdaq changed its rules in May to allow SpaceX to join the index within 15 trading days -- down from the previous three months. The index funds, whose investors include US retirement plans, will have to find room for the new entrant, creating a big wave of buying for SpaceX and selling of other stocks. Moreover, only 4 percent of the $1.77 trillion company will be made available for purchase -- an exceptionally thin offering. It means all those funds -- and Musk fans -- buying SpaceX will be chasing a very small pool of available stock, which could push the price up sharply.
SpaceX must wait a year to be part of S&P 500. The rules won't change for megacap companies. | Mint
Summary Many investors expected that S&P Dow Jones Indices would make the eligibility changes to ease the entry of SpaceX and other big coming IPOs into the S&P 500 index. S&P Dow Jones Indices said it plans to make no changes to eligibility criteria for the S&P 500 index, which means that SpaceX and other big IPOs won't be fast-tracked into the index. This means that newly public companies will have to wait at least 12 months before being considered for addition to an index. The action, announced in a press release late Thursday, affects the S&P 500 index and the S&P mid-cap and small-cap indexes. Earlier this year, S&P had considered allowing megacap companies into the index six months after their IPO dates. It also considered exempting megacap companies from financial viability criteria requiring them to be profitable before being included in S&P indexes. The firm said that it acted as "a result of the S&P Dow Jones Indices consultation on the treatment of Megacap companies." The action is a surprise because many investors expected that S&P Dow Jones Indices would make the eligibility changes to ease the entry of SpaceX and other big coming IPOs into the S&P 500 index. Nasdaq said in April that it was changing its rules to allow large companies to join the Nasdaq 100 just 15 days after their IPOs. The change was set to go into effect Friday. S&P Dow Jones said that "no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF," a reference to investible weight factor. S&P will continue to require companies to be profitable on a GAAP basis in the most recent quarter and have positive GAAP profits over the prior 12 months to be eligible for inclusion in the S&P 500 index. S&P's move to consider loosening requirements for admission into the index generated controversy in the investment community, with critics saying that proposed changes were too lenient on large, newly public companies and were designed to fast-track SpaceX as well as companies like Anthropic and OpenAI into the S&P 500. In a statement, the firm said "S&P DJI determined that exceptions to these requirements should not be granted solely based on market capitalization." SpaceX wasn't profitable in 2025 on a GAAP basis.
TrendAI™ Joins Anthropic's Project Glasswing
Collaboration will support efforts to identify and remediate software vulnerabilities using advanced AI capabilities HONG KONG SAR - TrendAI™, the enterprise AI security leader from Trend Micro Incorporated (TYO: 4704; TSE: 4704), today announced its participation in Project Glasswing, an initiative focused on helping organizations identify and address vulnerabilities in critical software systems. As part of the program, TrendAI™ will use Anthropic's Claude Mythos Preview to support the review and analysis of software code, helping threat intelligence researchers turn accelerated vulnerability discovery into coordinated disclosure, prioritized remediation, and measurable risk reduction through vulnerability shielding and virtual patching. AI is dramatically accelerating vulnerability discovery. TrendAI™ views this as a positive signal for the industry - it is part of the broader, collaborative ecosystem TrendAI™ has been actively contributing to for decades alongside organizations like Anthropic. Rachel Jin, Chief Platform and Business Officer, Head of TrendAI™: "We're aligned with Anthropic's goals of using AI to make all software more secure. Organizations increasingly depend on software that operates at tremendous scale and supports critical business functions. Project Glasswing represents an important opportunity to explore how advanced AI can help software providers identify vulnerabilities earlier and improve the security and resilience of the systems customers depend on every day." TrendAI™ joins a growing community of organizations participating in Project Glasswing to better understand how frontier and advanced AI models can support defensive security efforts and improve the security of critical software infrastructure. Insights gained through the program will contribute to informing the broader industry efforts to strengthen the security of the digital ecosystem. Hashtag: #trendai #trendmicro #trendvisionone #visionone #trendaivisionone https://www.trendaisecurity.com https://www.linkedin.com/company/trendai-security https://x.com/trendaisecurity https://www.facebook.com/trendaisecurity/ The issuer is solely responsible for the content of this announcement. About Anthropic Anthropic is an AI safety and research company dedicated to building reliable, interpretable, and steerable AI systems. Its Claude family of models enables advanced capabilities across a wide range of applications, including code understanding and security analysis. About TrendAI™ TrendAI™, the global AI security leader and enterprise business unit of Trend Micro, empowers organizations with full AI visibility and consolidated security that inspires confidence, drives innovation, and eliminates risk. Trusted by the largest enterprises and governments across 185 countries, TrendAI™ secures the entire organization, from identities to infrastructure to data. Global Fortune 500 companies rely on TrendAI™ to cut risk and stop threats up to three months earlier, powered by world-leading threat and attack intelligence. Through deep ecosystem partnerships with market leaders like NVIDIA, Anthropic, AWS, Google, and Microsoft, TrendAI™ empowers your organization to securely drive forward at the speed of AI. AI Fearlessly. Learn more at trendaisecurity.com.
Should You Buy RocketLab Stock Instead of SpaceX at IPO?
RocketLab (NASDAQ: RKLB) stock is soaring on the back of increasing enthusiasm to invest in space stocks. 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 " *Stock prices used were the afternoon prices of June 2, 2026. The video was published on June 4, 2026. Should you buy stock in Rocket Lab right now? Before you buy stock in Rocket Lab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Rocket Lab wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,316,532!* Now, it's worth noting Stock Advisor's total average return is 959% -- a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of June 4, 2026. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
17 Unconventional Hors D'oeuvres Recipes To Surprise Your Dinner Guests
Hors d'oeuvres, a French culinary tradition, are one or two-bite morsels. They're typically served at dinner parties and organized gatherings and are seasoned to pair well with specific beverages. Originating from the term "apart from the main work," hors d'oeuvres set the stage for the main meal, providing a glimpse into the upcoming meal awaiting guests. Designed to be consumed standing, these petite delicacies don't require any utensils, making them perfect for informal mingling. The art of hors d'oeuvres lies in the balance. An appropriate blend of meat, vegetables, and fish not only caters to diverse palettes but can also make the hors d'oeuvres feel like a mini meal. If you're planning on serving a selection of hors d'oeuvres, it's essential to acknowledge and cater to the varied dietary preferences of your guests so everyone has something to enjoy. There are plenty of options, from zesty fruit and vegetable creations to hearty bread-based snacks. Add some dishes with proteins -- be it meat or seafood -- and you have a nicely varied spread. If you want to impress your guests and avoid sharing the classics (as much as we love them), such as stuffed mushrooms, mini quiches, and bruschetta, here are adventurous hors d'oeuvres to gain some chef brownie points.
Anthropic suggests pause of global AI development, warning that 'human role narrowing'
Anthropic faces pushback from others in the industry and US officials, who say the focus on worst-case scenarios overstates the risks. Artificial intelligence company Anthropic has suggested a global pause on building the most powerful AI systems as the latest models are beginning to show signs they could escape human control. The San Francisco-based company, which makes the Claude family of AI models, said in a report on Thursday that a worldwide slowdown in cutting-edge AI development would "likely be a good thing" -- but warned that if only one company stopped, rivals would simply race ahead. "We believe it would be good for the world to have the option to slow or temporarily pause frontier AI development to enable societal structures and alignment research to keep up with the advance of the technology," it said. Getting a real pause to work would mean multiple major AI companies in multiple countries -- most notably the US and China -- all agreeing to stop at the same time, under rules everyone could actually verify, Anthropic said. "Without a global coordination mechanism, companies and governments will have to make difficult decisions about safety while under competitive and geopolitical pressures," it said. The company has faced pushback from others in the industry -- and officials in the White House -- who say its focus on worst-case scenarios overstates the risks and amounts to a strategy for slowing rivals under the cover of safety concerns. Still, the White House has acknowledged the power of the company's Mythos model -- which has not been made available to the general public due to its cybersecurity capabilities and is currently deployed only to a small number of vetted organisations. The proposal would face an uphill battle in Washington and Silicon Valley, where US officials and tech executives have repeatedly argued that any slowdown in AI development risks handing China a decisive strategic edge in what many see as the defining technology race of the century. US President Donald Trump, however, said he discussed the possibility of cooperating with China on AI safety issues during his recent visit to Beijing. Trump also signed an executive order this week that allows the government 30 days to conduct a preliminary review of the most powerful US AI models before their release.
When Will SpaceX, Anthropic, and OpenAI Join the S&P 500 Index?
Three massive initial public offerings (IPOs) of artificial intelligence (AI) companies are expected before the end of the year, and they could be the largest public stock offerings in history. Anthropic, which developed the chatbot Claude, filed with the Securities and Exchange Commission on Monday for an IPO. SpaceX, the rocket and AI company started by Elon Musk, is expected to go public on June 12. And OpenAI, which is behind the ChatGPT chatbot, will soon do the same. 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 " They are all expected to be valued at between $1 trillion and $2 trillion at their debuts -- valuations that would place them among the world's 12 or 13 largest companies by market cap. Image source: Getty Images. The three companies are expected to cause some disruptions to the market when, and if, they are added to the S&P 500 index. That's because large mutual funds and passive funds that track the large-cap index will have to sell meaningful portions of their existing holdings to add these blockbuster companies and fulfill their mission of proportionally representing the market. That will be a massive rebalancing act for those funds. But normally, the process of preparing for those changes would take a year or more, giving fund managers time to adapt. According to longstanding S&P rules, a company must be public for a year and have four consecutive quarters of positive earnings before it can be added to the iconic S&P 500 index. This latter requirement is known as "financial viability." S&P 500 may change the rules to accommodate these companies That may change very soon, however. In an unprecedented move, S&P Dow Jones is considering altering its rules to fast-track the entry of these giant companies. On April 30, S&P Dow Jones announced it is consulting with stakeholders about allowing newly public companies to be added to the S&P 500 index after just six months of being publicly traded. In addition, it is considering waiving the financial viability requirement for megacap companies. That last change would be a critical one for these AI IPOs, as SpaceX and OpenAI are still unprofitable, and Anthropic is expected to post its first quarterly profit this (second) quarter. The three companies combined for losses of more than $25 billion last year as they scrambled to raise (and spend) funds to train next-generation models, scale current ones, and win the competition between Claude, ChatGPT, and SpaceX's Grok chatbot. S&P Dow Jones is not alone in its efforts to accommodate the three mega-IPOs. Nasdaq approved a fast-track change in March to grant newly public behemoths early admission to the Nasdaq-100 index. And London-based FTSE Russell, which runs a bunch of well-known market indexes, is in consultation to do so. So, investors who want to get portfolio exposure to these giant AI companies after they go public this year may not have to wait long. In fact, anyone who owns shares of passive S&P 500 or Nasdaq-100 index funds may not have a choice. 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 959%* -- a market-crushing outperformance compared to 210% 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 4, 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.
Morning Brief Podcast: Anthropic Goes Public: Can Markets Justify a $1 Trillion Value?
As Anthropic files confidentially for an IPO with a reported valuation nearing $1 trillion, markets are watching closely. Host Anirban Chowdhury talks to Daniel Newman, CEO at data intellegince, research and advisory firm The Futurum Group to break down what investors should really scrutinise from enterprise attrition data to compute cost commitments. They unpack the revenue optics inflated by cloud credits, the profitability timeline that could stretch years, and why buying on Day One may be a ...Read Morerisky bet. Newman also weighs in on whether going public will force Anthropic into a tension between quarterly expectations and long-horizon research and what OpenAI can learn from watching Anthropic go first....Read Less
Anthropic says Claude AI is now improving and building itself automatically faster than expected
Anthropic says its Claude AI is increasingly helping create new AI systems, a trend the company believes could speed up AI development. In a blog post, the company said the trend could eventually lead to "recursive self-improvement", where an AI system becomes capable of designing, building and training its own successor with little or no human involvement. The company stressed that such a stage has not yet arrived and may never fully materialise, but argued that governments, regulators and society need to start preparing for it now. "We are not there yet, and recursive self-improvement is not inevitable. But it could come sooner than most institutions are prepared for," the company wrote in the research paper, warning that AI development appears to be speeding up rather than slowing down. According to Anthropic, both public benchmarks and its own internal data show that AI is already helping engineers and researchers work faster. While these advances could unlock major advances in areas such as healthcare, science and productivity, the company says it also raises questions about how humans will maintain oversight as AI systems become more capable. How is AI improving faster than expected? Anthropic outlined how the shift has unfolded over the past few years. Initially, engineers wrote code manually. Then chatbots began assisting with small coding tasks. That evolved into coding agents capable of writing and editing files independently. Today's AI agents can run code, perform tasks on their own and even delegate work to other agents. The next logical step, Anthropic argues, is AI systems that help build and train future AI models. The company also points to public benchmarks as evidence that AI capabilities are advancing rapidly. Anthropic said the amount of work AI systems can reliably complete has been growing quickly, with task duration doubling roughly every four months, compared with an earlier trend of every seven months. In March 2024, Claude Opus 3 could handle software engineering tasks that took humans around four minutes to complete. A year later, Claude Sonnet 3.7 could manage tasks lasting around 90 minutes. By 2026, Claude Opus 4.6 was reportedly capable of handling tasks requiring roughly 12 hours of human effort. According to Anthropic, Claude now writes most of the code used to build the company's AI systems. As a result, engineers are able to get much more work done, with the average engineer producing around eight times more code each day than in 2024. However, Anthropic notes that writing more code does not automatically mean engineers are eight times more productive. Claude is not just getting better at coding. Anthropic says it is also improving at research tasks. In one internal project, Claude-powered agents solved nearly all of a key research challenge, while its success rate on difficult coding tasks rose to 76 per cent in May 2026, up significantly in just six months. Looking ahead, Anthropic outlined three possible futures. progress could slow down, AI could continue delivering major productivity gains while humans remain in control, or AI systems could eventually begin building their own successors. The company said the second scenario appears the most likely based on current evidence. Anthropic suggests a slowdown in AI development Despite these improvements, Anthropic says humans still have an edge when it comes to big-picture thinking, making strategic decisions and deciding which problems are worth solving. However, at the same time, Anthropic warns that the challenge is no longer just building more capable AI systems. Instead, the bottleneck is increasingly becoming human oversight, review and validation. If AI starts advancing faster than society can safely manage, the company says there should be a way for governments and leading AI firms to coordinate a temporary slowdown in the development of the most advanced AI models. However, it cautions that any pause would need to be coordinated globally, as a unilateral slowdown by one company could simply allow less cautious competitors to move ahead.
SpaceX, other mega IPOs denied fast index entry by S&P
This means SpaceX, which is preparing what could become the largest IPO in history, would not be eligible for inclusion in the S&P 500 until at least one year after its listing. NEW YORK - S&P Dow Jones Indices will keep its existing eligibility requirements for main benchmarks like the S&P 500 Index, rejecting proposals that would have made it faster for mega-cap companies such as Elon Musk's SpaceX to gain rapid entry into the benchmark after going public. The index provider announced on June 4 that it will not shorten the 12-month seasoning period for newly public companies it currently has or waive existing profitability and public-float requirements based on a company's size, diverging from a broader industry shift embraced by rivals Nasdaq and FTSE Russell. The decision arrives as Wall Street grapples with a new reality: some companies are reaching unprecedented sizes before they ever enter public markets. The consultation, launched earlier in 2026, effectively asked whether index rules written for a different era should bend to accommodate companies that now arrive at a scale once reserved for mature blue chips in what has become known as the "fast entry" in industry parlance. The push for quicker inclusion has raised concerns among some investors who say rules around profitability, float and trading history exist precisely to prevent benchmarks from chasing hype. Furthermore, adding IPOs too quickly, they say, could expose passive funds to greater volatility and force them to buy shares before reliable market pricing is fully established. Meanwhile, supporters say indexes should include massive companies as quickly as possible to reflect the market investors actually own, adding that these trillion-dollar firms can be economically significant long before they satisfy traditional index requirements. The outcome means SpaceX, which is preparing what could become the largest IPO in history, would not be eligible for inclusion in the S&P 500 until at least one year after its listing. The company would also need to satisfy the index's existing requirements for profitability and public float. "I am genuinely surprised," said James Seyffart, ETF analyst at Bloomberg Intelligence. "But S&P is the market leader and they can buck the trend." Nasdaq changed its rules recently so SpaceX can join the Nasdaq 100 Index, a cohort of the largest non-financial companies listed on its exchange, in just 15 trading days, down from a three-month minimum. FTSE Russell adopted a similar approach, shortening the waiting time to five trading days. BLOOMBERG
Anthropic says AI labs need coordinated plan to halt development if risks rise By Reuters
June 4 (Reuters) - Anthropic said on Thursday frontier AI developers should establish a coordinated, verifiable way to slow down or temporarily pause development if advanced systems begin improving themselves faster than society can manage the risks. AI that can build itself would be a major development in the history of technology, but "full recursive self-improvement also might increase the risks of humans losing control over AI systems," the AI startup said. "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." As an example, Anthropic said that as of May, more than 80% of the code merged into its codebase was authored by Claude. It would be "good for the world to have the option to slow or temporarily pause frontier AI development to enable societal structures and alignment research to keep up with the advance of the technology," the company said. However, it cautioned that unilateral or poorly coordinated slowdowns could backfire if less cautious actors continue advancing, potentially reducing overall safety. It highlighted 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 a single company would be easier to implement, Anthropic added, but would have limited impact, primarily shifting leadership rather than fostering broader global deliberation. Its research arm, Anthropic Institute, plans to study and help build systems that would be necessary to support a slowdown. In the coming months, Anthropic plans to convene discussions involving policymakers, researchers, civil society groups and other AI firms to examine key questions. These questions include how to manage AI-related risks such as recursive self-improvement and how to improve mechanisms for coordination. Last month, Anthropic concluded a fundraising round that valued the company at $965 billion and confidentially filed for a U.S. initial public offering on Monday.
When Will SpaceX, Anthropic, and OpenAI Join the S&P 500 Index?
Three massive initial public offerings (IPOs) of artificial intelligence (AI) companies are expected before the end of the year, and they could be the largest public stock offerings in history. Anthropic, which developed the chatbot Claude, filed with the Securities and Exchange Commission on Monday for an IPO. SpaceX, the rocket and AI company started by Elon Musk, is expected to go public on June 12. And OpenAI, which is behind the ChatGPT chatbot, will soon do the same. They are all expected to be valued at between $1 trillion and $2 trillion at their debuts -- valuations that would place them among the world's 12 or 13 largest companies by market cap. The three companies are expected to cause some disruptions to the market when, and if, they are added to the S&P 500 index. That's because large mutual funds and passive funds that track the large-cap index will have to sell meaningful portions of their existing holdings to add these blockbuster companies and fulfill their mission of proportionally representing the market. That will be a massive rebalancing act for those funds. But normally, the process of preparing for those changes would take a year or more, giving fund managers time to adapt. According to longstanding S&P rules, a company must be public for a year and have four consecutive quarters of positive earnings before it can be added to the iconic S&P 500 index. This latter requirement is known as "financial viability." S&P 500 may change the rules to accommodate these companies That may change very soon, however. In an unprecedented move, S&P Dow Jones is considering altering its rules to fast-track the entry of these giant companies. On April 30, S&P Dow Jones announced it is consulting with stakeholders about allowing newly public companies to be added to the S&P 500 index after just six months of being publicly traded. In addition, it is considering waiving the financial viability requirement for megacap companies. That last change would be a critical one for these AI IPOs, as SpaceX and OpenAI are still unprofitable, and Anthropic is expected to post its first quarterly profit this (second) quarter. The three companies combined for losses of more than $25 billion last year as they scrambled to raise (and spend) funds to train next-generation models, scale current ones, and win the competition between Claude, ChatGPT, and SpaceX's Grok chatbot. S&P Dow Jones is not alone in its efforts to accommodate the three mega-IPOs. Nasdaq approved a fast-track change in March to grant newly public behemoths early admission to the Nasdaq-100 index. And London-based FTSE Russell, which runs a bunch of well-known market indexes, is in consultation to do so. So, investors who want to get portfolio exposure to these giant AI companies after they go public this year may not have to wait long. In fact, anyone who owns shares of passive S&P 500 or Nasdaq-100 index funds may not have a choice.
When Will SpaceX, Anthropic, and OpenAI Join the S&P 500 Index?
Three massive initial public offerings (IPOs) of artificial intelligence (AI) companies are expected before the end of the year, and they could be the largest public stock offerings in history. Anthropic, which developed the chatbot Claude, filed with the Securities and Exchange Commission on Monday for an IPO. SpaceX, the rocket and AI company started by Elon Musk, is expected to go public on June 12. And OpenAI, which is behind the ChatGPT chatbot, will soon do the same. 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 " They are all expected to be valued at between $1 trillion and $2 trillion at their debuts -- valuations that would place them among the world's 12 or 13 largest companies by market cap. The three companies are expected to cause some disruptions to the market when, and if, they are added to the S&P 500 index. That's because large mutual funds and passive funds that track the large-cap index will have to sell meaningful portions of their existing holdings to add these blockbuster companies and fulfill their mission of proportionally representing the market. That will be a massive rebalancing act for those funds. But normally, the process of preparing for those changes would take a year or more, giving fund managers time to adapt. According to longstanding S&P rules, a company must be public for a year and have four consecutive quarters of positive earnings before it can be added to the iconic S&P 500 index. This latter requirement is known as "financial viability." S&P 500 may change the rules to accommodate these companies That may change very soon, however. In an unprecedented move, S&P Dow Jones is considering altering its rules to fast-track the entry of these giant companies. On April 30, S&P Dow Jones announced it is consulting with stakeholders about allowing newly public companies to be added to the S&P 500 index after just six months of being publicly traded. In addition, it is considering waiving the financial viability requirement for megacap companies. That last change would be a critical one for these AI IPOs, as SpaceX and OpenAI are still unprofitable, and Anthropic is expected to post its first quarterly profit this (second) quarter. The three companies combined for losses of more than $25 billion last year as they scrambled to raise (and spend) funds to train next-generation models, scale current ones, and win the competition between Claude, ChatGPT, and SpaceX's Grok chatbot.
SpaceX blocked from early U.S. benchmark index entry as S&P reaffirms existing rules
S&P Global said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk's SpaceX by effectively ruling out a swift entry for the world's biggest-ever IPO into the benchmark S&P 500 index. Musk has rewritten the IPO playbook for SpaceX in many ways from planning to give retail investors a bigger role in allocations to pushing for early index inclusion, and structuring governance to preserve strong founder control. The company is raising $75 billion and targeting a $1.75 trillion valuation that would place it among the top 10 most valuable U.S.-listed firms, even as only a fraction of its shares are available for trading. But S&P said "exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization". To be included in the S&P 500, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter as well as for the sum of its most recent four quarters, according to one of the rules S&P left unchanged. SpaceX posted a net loss of $4.94 billion in 2025, even as revenue rose 33% to $18.67 billion.
Anthropic calls for pause of global AI development
New York (AFP) - Artificial intelligence company Anthropic suggested Thursday a global pause on building the most powerful AI systems as the latest models are beginning to show signs they could escape human control. The San Francisco-based company, which makes the Claude family of AI models, said in a report that a worldwide slowdown in cutting-edge AI development would "likely be a good thing" -- but warned that if only one company stopped, rivals would simply race ahead. "We believe it would be good for the world to have the option to slow or temporarily pause frontier AI development to enable societal structures and alignment research to keep up with the advance of the technology," it said. Getting a real pause to work would mean multiple major AI companies in multiple countries -- most notably the US and China -- all agreeing to stop at the same time, under rules everyone could actually verify, Anthropic said. "Without a global coordination mechanism, companies and governments will have to make difficult decisions about safety while under competitive and geopolitical pressures," it said. The company has faced pushback from others in the industry -- and officials in the White House -- who say its focus on worst-case scenarios overstates the risks and amounts to a strategy for slowing rivals under the cover of safety concerns. Still, the White House has acknowledged the power of the company's Mythos model -- which has not been made available to the general public due to its cybersecurity capabilities and is currently deployed only to a small number of vetted organizations. The proposal would face an uphill battle in Washington and Silicon Valley, where US officials and tech executives have repeatedly argued that any slowdown in AI development risks handing China a decisive strategic edge in what many see as the defining technology race of the century. US President Donald Trump, however, said he discussed the possibility of cooperating with China on AI safety issues during his recent visit to Beijing. Trump also signed an executive order this week that allows the government 30 days to conduct a preliminary review of the most powerful US AI models before their release. 'Human role narrowing' Anthropic compared the problem to nuclear arms control treaties -- but said it would be even harder to get a handle on, since AI training is far easier to hide than a missile silo, and the temptation to quietly keep going would be enormous. The company said it plans to bring together government officials, scientists, advocacy groups and competing AI firms in coming months to figure out how such a system could work. The call for coordination comes alongside internal data showing that AI is already dramatically speeding up the development of AI itself, Anthropic said. That acceleration creates a feedback loop that Anthropic warned could eventually lead to what researchers call "recursive self-improvement." That's the idea of an AI system that becomes capable of essentially teaching itself to get smarter, without much human help. "We are not there yet, and recursive self-improvement is not inevitable," the report said, while adding that it could arrive sooner than most governments and institutions are ready for. "The evidence suggests that the human role is narrowing at each step in the AI development process," the company said.
ASTS, RKLB, SPCE, RDW Stocks Extend Selloff Overnight -- Analyst Backs 'Betting Against Space' Trade As Jefferies Courts SpaceX Bears
* SpaceX plans to raise $75 billion at $135 per share, valuing the company at $1.77 trillion, or more than $1.8 trillion on a fully diluted basis. * Tesla influencer AleXandra Merz said that the IPO is only one step in SpaceX's funding journey, citing estimates of $235 billion in capital needs through 2030. * Satellite communications analyst Tim Farrar revived the view that 'betting against space' has often been the more rational trade. Space stocks extended their selloff overnight heading into Wednesday as investors weighed growing bearish interest around SpaceX's blockbuster IPO and mounting questions over its $1.8 trillion valuation. The weakness followed a brutal Wednesday session that saw shares of AST SpaceMobile (ASTS), Rocket Lab (RKLB), Virgin Galactic (SPCE) and Redwire (RDW), among other space stocks, all plunge up to 15%. In overnight trading, ASTS and RKLB each fell about 2%, RDW declined 3%, and SPCE sank 6%. How Big Can SpaceX's IPO Get? According to SpaceX's filing with the U.S. Securities and Exchange Commission (SEC) late Wednesday, the company plans to sell 555.6 million shares at $135 per share, raising $75 billion and valuing the company at $1.77 trillion. On a fully diluted basis, the valuation exceeds $1.8 trillion. The company is expected to begin formally marketing the deal on Thursday ahead of a June 11 share sale and a trading debut the next day. The scale of the offering could grow further if investor demand proves strong. Tesla influencer Sawyer Merritt noted on X that full exercise of the IPO's overallotment option could increase the value of shares sold by $11.25 billion. "If demand for SpaceX stock is strong enough with this IPO, the company says it could raise upwards of $85.7 billion," Merritt said. The initial IPO filing had ignited a brief rally among space stocks after SpaceX called the sector's opportunity as the "largest actionable total addressable market in human history," estimating a $28.5 trillion market spanning launch services, Starlink connectivity, direct-to-cell communications and AI infrastructure. Why SpaceX May Need More Capital While much of the market has focused on SpaceX's valuation, Tesla influencer AleXandra Merz, who posts under the handle TeslaBoomerMama on X, said that the $75 billion to $83 billion raise would provide financial flexibility, but added that SpaceX's plans for Starlink expansion, Starship development and AI infrastructure point to funding needs that extend far beyond a single capital raise. Merz noted that SpaceX already carries debt estimated at $29 billion and highlighted estimates circulating among investors that place the company's capital requirements at $235 billion through 2030: "This is normal for a company still in heavy build mode," she wrote. "It just means the IPO is an important milestone, not the end of the funding journey." Merz also flagged a larger retail allocation than is typical for a major IPO. However, she cautioned that participation would still depend on brokerage relationships, allocation availability, account minimums and confirmation requirements. She said: "Many will likely be disappointed with their actual allotment on June 12 -- just putting that out there to help manage expectations." SpaceX Bears Circle The IPO While Wall Street's biggest banks secured roles on the IPO, one notable name was missing from the underwriting syndicate: Jefferies Financial Group. According to Bloomberg, hedge funds interested in betting against SpaceX after its public debut have approached Jefferies to explore potential short-selling opportunities. Jefferies' absence from the underwriting group has reportedly left the firm uniquely positioned to facilitate bearish trades once shares begin trading. The discussion around potential short bets prompted satellite communications analyst Tim Farrar to revive a bear thesis: "'Betting against space' has often been the most rational approach until the last few years," Farrar said on X. "Why do you think Musk wanted to have 'the first constellation not to go bankrupt'?" Farrar said, referencing a 2021 X post in which Musk acknowledged the financial risks facing Starlink. "SpaceX needs to pass through a deep chasm of negative cash flow over the next year or so to make Starlink financially viable," Musk said at the time. "Every new satellite constellation in history has gone bankrupt. We hope to be the first that does not." Warning On SpaceX Valuation Short seller Jim Chanos, the founder of Kynikos Associates who gained prominence after predicting Enron's collapse, dismissed on X the comparisons between SpaceX and Amazon's early years. He noted that Amazon was valued at $19 billion at the end of 2005, or about 2x revenue and 30x trailing earnings before interest, taxes, depreciation and amortization (EBITDA), arguing that investors were assigning little value to its future businesses. "SpaceX's expected valuation is literally the opposite of that situation," Chanos said. How Do Retail Traders Feel About Space Stocks? On Stocktwits, retail sentiment toward SpaceX, ASTS and RDW was 'bullish', with 'extremely high' message volume for SpaceX and 'high' for ASTS and RDW. RKLB also carried a 'bullish' sentiment rating, though message volume was 'normal'. SPCE stood out with 'extremely bullish' sentiment and 'extremely high' message volume. Over the past year, ASTS has surged 328%, RKLB has jumped 329%, RDW has gained 25%, and SPCE has advanced 32%. For updates and corrections, email newsroom[at]stocktwits[dot]com.
Why the SpaceX IPO Is Sending AT&T Stock Down Today
AT&T (T) shares are under significant pressure on June 3 after Oppenheimer analyst Timothy Horan downgraded them to "Perform" and stripped the price target entirely. In his research note, Horan issued a sweeping warning that satellite broadband is no longer a distant threat for AT&T now that SpaceX is set to debut on Nasdaq next week. More News from Barchart His bearish call concerns that AT&T stock has already been in a downtrend since late March, currently trading nearly 20% below its year-to-date high. Here's Why Oppenheimer Turned Bearish on AT&T Stock Horan's downgrade isn't rooted in anything AT&T has done wrong recently -- it's a structural call on where broadband is heading. The Oppenheimer analyst expects a rapid switch to satellite internet, with LEO providers capturing more than 2 million subscribers annually. By the end of this decade, Horan believes they will command a meaningful 10% share of the fixed broadband market, where AT&T carries more exposure than its peers. Moreover, he sees "strong regulatory support behind satellites, increasing the feasibility for SpaceX to directly enter mobile." That said, T shares currently pay a rather lucrative 4.72% dividend yield that keeps them attractive for income-focused investors. What Else Could Drive T Shares Lower in 2026? Oppenheimer turned dovish on AT&T shares because it expects the company's fiber penetration to disappoint as well, potentially stopping at 50 million households instead of 60 million it had projected by 2030. This gap matters enormously for long-term revenue growth, its analyst told clients. According to Timothy Horan, as satellite pricing converges with conventional broadband, the economic case for continued fiber expansion deteriorates. In fact, within three years, new fiber builds across the industry will halt -- hitting the entire supply chain, he added. The incoming SpaceX listing only amplifies the narrative risk: once SPCX begins trading, and Starlink's financials become fully public, institutional investors will have a cleaner lens through which to measure the satellite threat -- and AT&T may not like what that comparison looks like.
