Some of the leading artificial intelligence companies are moving toward initial public offerings this year at eye-popping valuations. From Anthropic to SpaceX to OpenAI, tech giants are looking to take their shares public to access more capital in the race to shape the technology’s future. The amount of money involved in building and maintaining artificial intelligence models, the pursuit of artificial general intelligence that can surpass humans at many tasks, and widespread AI adoption all have led to an air of excitement around the technology that has helped lift the stock market to record highs.“These companies are now burning through cash to win the AI race, and public equity is the cheapest source available, particularly in a rising interest rate environment,” said Michael Field, chief equity analyst at Morningstar.But amid the billions — even trillions — at stake, worries about an AI bubble are looming in the background. Some experts fear tech companies and venture capitalists are pouring too much money into a still-nascent and unproven technology. For now, though, the market shows no signs of a slowdown. Here’s a look at some of the biggest AI-focused companies.
Elon Musk’s SpaceX was valued at $800 billion last year, but its value grew to $1.25 trillion after the space exploration company merged in February with Musk’s artificial intelligence company, xAI. Now, SpaceX plans an IPO that could become one of the biggest stock sales ever — even though the company is currently losing billions of dollars a year. SpaceX lost $2.6 billion from operations last year on $18.7 billion in revenue, according to a May regulatory filing, and the losses kept piling up at the start of this year. xAI, which features the Grok chatbot, lost $6.4 billion in operations last year, according to a company document. Musk got SpaceX to buy xAI earlier this year despite protests from some SpaceX investors that it was a bailout and unethical given that he was a controlling shareholder in both.SpaceX said on Wednesday it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Musk on course to becoming the world’s first trillionaire. An offering of that size would easily break the record for the largest IPO, which was set by Saudi Aramco in 2019 when the oil giant went public and raised $26 billion.
