Despite mainstream media and the community at large calling the AI build-out a bubble, chip and digital storage suppliers soared. Sandisk (SNDK), for example, is up by around 50 times since its listing last year. SNDK stock rose from below $5.00 to close at $2,090.71 on June 26.
AI euphoria continued after SpaceX (SPCX) fueled the AI market by buying Cursor for $60 billion in an all-stock deal. Anthropic confidentially filed its IPO, too. Even OpenAI filed its IPO. But on June 25, a New York Times report poured doubt on OpenAI’s listing.
The NYT reported that OpenAI is considering pausing its IPO until 2027. Unusually, shares of Microsoft (MSFT), which backed the firm, rallied by nearly 6% on June 26.
OpenAI likely reflected on recent events. The sharp drop in SpaceX shares after its brief rise to $225.64 and weakening AI sentiment are some of the factors for the IPO delay. Advisors want the IPO to have a market capitalization of at least $1 trillion. The private company is only worth around $850 billion.
Anthropic, which surpassed OpenAI by reporting profits, will easily command a $1 trillion valuation. Its AI models are so far ahead that the U.S. government issued temporary restrictions on them. Anthropic also accused Alibaba (BABA) of accessing its AI model. Alibaba allegedly distilled Anthropic’s AI by using thousands of accounts.
