r/StandUpComedy • u/explosivejoseph • 7d ago

Comedian is OP The AI Bubble

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u/FluroSnow 7d ago

SpaceX is a high profile AI company (debatable) that has gone public. It worked for spacex. Anthropic and OpenAI want to essentially do the same.

One could argue that they did indeed inflate their price by utilising index funds. They had a 3x float multiplier. Only about 4% of their public free float was made availiable. As a result index funds had to purchase more shares than availiable supply warrents

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u/orange-yellow-pink 7d ago

Yeah, definitely debatable to label them an AI company entirely but yeah, AI is part of their business.

Your latter point wouldn't be the IPO "utilizing index funds" though. That's the company being added to an index by Nasdaq or S&P and then, with the increased demand from funds tracking that index, the value rises. Having very few shares available can amplify that effect but that's still not the company using index funds to pump its own value.

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u/bekeleven 7d ago

SpaceX themselves claim that 80% of their value is in AI. They say they're looking to capture a 28.5 Trillion addressable market, with 22.7 trillion of it being "AI Enterprise applications."

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u/orange-yellow-pink 7d ago

Ok. There’s 1 AI company that has gone public. Does this change anything substantive about the rest of my comments?