SpaceX’s IPO Triumph, Anthropic’s Fable Fumble, OpenAI’s Price War

**Alex Kantrowitz** (0:00)
SpaceX IPOs soars and makes Elon Musk the world's first trillionaire. Anthropic's Fable rollout doesn't go as planned, and OpenAI may drop rates drastically. That's coming up on a Big Technology Podcast Friday edition right after this.
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**Ranjan Roy** (1:28)
Wow. You know when the Fable fumble is going to be story number three, we've got a busy week. But we do have the world's first trillionaire.
I think it's time to celebrate, right?

**Alex Kantrowitz** (1:40)
That would be Elon Musk. You know, this is a very interesting IPO for a number of reasons. Obviously, it's going to factor heavily in the AI world. Because if you think about it, a year ago, SpaceX didn't really have an AI play. Then in the run up to the IPO, the company signed a $15 billion deal with Anthropic, a $30 billion deal with Google to license out the data centers. It's built for its own AI efforts.
Now it's become one of the biggest clouds in the world. That has propelled it to a $75 billion IPO. It's above $2 trillion. So Ranjan, I just would love to get your perspective on the IPO. Of course, the broader story about what it means, but also, they came out telling us that 26.5 of 28.5 trillion of their total addressable market is AI. So is this the world's first AI IPO? And if it is, what does it mean for OpenAI and Anthropic?

**Ranjan Roy** (2:43)
Is this the world's first? Well, it's not the world's first AI IPO. I think it's certainly out of the big three. It is amazing, I have to just say, how in the span of, I think, what is it, six to nine months, Elon Musk has turned SpaceX into an AI company with the acquisition of XAI, his own company, with these incredible Anthropic and Google AI cloud deals with the potential kind of a, I don't know if it's an acquisition of Cursor, at least it's the right to buy Cursor, suddenly has gotten in the fold.
And again, we talked about this in the last few weeks. The numbers are interesting, again, in terms of the actual revenue, in terms of how much money they're losing, in terms of Starlink, the actual infrastructure business being the cash cow. But I just have to say, let's take this moment to actually, this is what Elon Musk is incredible at. And like, I have to admit, between the Anthropic and the Google contracts, between the way he rolled up all his different entities to pull this off in this way, at least for this moment, is pretty spectacular. And it's pretty masterful.

**Alex Kantrowitz** (4:04)
Right. And you know, there was certainly money that was going to be earmarked towards AI IPOs from investors, right? And certainly people were waiting to invest in SpaceX. But you could argue that without the AI side, SpaceX is not a very compelling story. It's a communications company with Starlink and this launch business that's not profitable. Of course, a lot of that money is in R&D.
The AI story, you know, gave the market, the market I think was looking for something to be enthusiastic about for SpaceX, something to justify putting in the money. And now they got that story and they responded accordingly. So the question to you, Ranjan, becomes is, is Elon taking money out of Sam and Dario's pockets? Because maybe some of that money was going to go to the OpenAI's and Anthropics of the World, or has he just set the precedent that if you want this, you know, AI company that's sort of spun up in a moment, you want to get behind that story, then you should definitely get behind the other two. What's your thought?