Speaker 0: openai just quietly triggered the biggest financial earthquake in tech history by filing a confidential s one for a trillion dollar ipo. if you thought ai was just an expensive hype cycle, wall street is about to find out exactly what chachipt's internal recipes actually look like. so openai on monday, june 8 in the evening filed for, a trillion dollar ipo. openai has officially confirmed a confidential s one filing with the s c sec targeting a staggering valuation between 730,000,000,000 and 1,000,000,000,000. this transitions the chatgtp creator from a private capped profit entity into a public market, juggernaut alongside a massive wave of other twenty twenty six filings including, the spacex ipo and the anthropic ipo. so this forces the world's most secretive ai giant to finally open its books testing whether generative ai business models can actually survive public market scrutiny and astronomical compute cost. now i don't really know if we're gonna be opening up the books all that much, but and how much will trickle down to us. but, you know, we've been saying this since the start. they're losing billions of dollars every month, and they're slowly starting to, make that bleed less and less and less. but when you open up your books, are the consumers and other people filing for the ipo gonna be looking at that, or are they gonna be looking at a long term value? so what do you think about this, john, and the string of ipos we've had recently? Speaker 1: yeah. so i was gonna open up with the, oh, openai filing confidentially, look at what they're doing, but then i would research that anthropic did the same thing. so, i can't really fault them for that. so, i'm not surprised that, openai has done this. they're obviously filing shortly after anthropic. so anthropic, like i said, confidentially filed for its own ipo. but the recent valuation has gotten closer to open apis. now i get why these companies are filing for ipo because they require massive data centers. they require lots of hardware, tens of thousands of gpus. they require specialized networking infrastructure, proprietary, development, especially ai chip development, potential power generation agreements, global cloud infrastructure. so, like, from some of my research, it looked like openai's long term spending projections exceeded a $100,000,000,000 just through the remaining of the decade. and much of that was directed towards training increasingly capable api models. so, historically, software companies scaled with relatively modest infrastructure costs, but ai companies are becoming essentially utility providers and also semiconductor manufacturers. okay? if we're talking about capital requirements. so i get it. now we didn't cover this in anthropic, but we should talk about this a little bit. wi fi confidentially. so it allows them to resolve sec questions privately. it also tests investor interest, which i don't know why they need to do that because, obviously, there's a lot of investor interest. also, refining financial disclosures and offering structure. so i guess it's a way for them to file an ipo quicker and get to an ipo quicker so that they can resolve all this while they've already committed to filing an ipo, if that makes sense. right? what are your thoughts, craig? i i'm curious to see who does better between anthropic and openai. this is gonna be cool. Speaker 0: yeah. and you know, they're burning cash. so think of this update like a local charity drag racing team that suddenly is entering a formula one. they built a mind blowing rocket ship of a car using the donations and private grants and vc money. but to keep buying the incredible expensive fuel it needs to run every single lap, they now need to sell team ownership to wall street, all while promising the fans they won't lose the original nonprofit soul. so, the last one filed was 06/09/2026. the exact public debut date is still undecided, but it's moving rapidly to align with major regulatory shifts this summer. the share price is to be, announced, but openai has explicitly stated plan to, reserve a dedicated portion of the ipo to retail everyday investors, not just mass institution investors. shares will be publicly traded on major us stock exchange open to anyone with a standard brokerage account. and we can expect an aggressive push for paid gpt plus features and tighter limits on free tiers over the coming months as openai scrambles to optimize its profit margins before investors audit their ledger. so they'll wanna tighten all that up before people start looking at it. we got, you know, the trillion dollar evaluation. spacex is what? going for 1.5. anthropic's going for about a trillion. so we'll have to see what the market seems to think. i think the market's ai crazy. i think these are all gonna do really well during the day as far as selling, but i don't know what the final price will be. ipos, you know, let's face it, our crapshoot day of because, they set a price at, hey, $50, and then everybody buys in, and then it goes up to, like, $90, and then it comes down and ends the day at $35. or something like that. and it's all it not always, but a lot of times, it ends way lower than you thought, and then it eventually makes it back up. so ipos are very interesting. and when you will see what kind of regulation is for non institutional investors because they usually hold that pretty tight. Speaker 1: yeah. Speaker 0: because just because of the rich, i think, for most of anything. plus, you know, obviously, people say the rich get richer and all that. but go ahead. Speaker 1: yeah. also sorry. just, one thing that the ontario public teachers union, i was it openai that they invested in, or was it spacex? i can't remember. but they invested, 200,000,000, and now it's looking to be valued at a $111,000,000,000. so, sorry if it's not openai. i thought it was, but now that i see it, i think it's maybe spacex. but just speaking about, investments. right? so, it's, i'd like to get in on anthropics for sure. i feel like what baffles me is that elon, out of all people, has released these financials compared to openai and anthropic filing confidentially. so that's kind of back ass words to me. i would think elon would file secret secretively or confidentially at first. right? or no? Speaker 0: yeah. i think. well well so i well, time is gonna tell. right? and i just did a quick search on the ontario, teachers pension plan, and their, teachers venture growth, which is, i guess, investment arm. they hold major investments in anthropic, quantexa, deepl, spacex, and wave. Speaker 1: so not openai? Speaker 0: not openai, but anthropic and spacex right now. Speaker 1: yeah. that's that's actually kind of interesting. Speaker 0: alright. so, back to this. Speaker 1: yeah. so my question was, like like, you think, like, why are these companies filing confidentially and elon isn't? Speaker 0: i think elon's had way more scrutiny than most of these other companies just because of all the crap he's been through for the last few years and because investors have gone through this how many times they had to do evaluations, go through court, and say, was that valuation worth it? should i get paid? do like, i think he's just been so more used to the public scrutiny that it's already out there, so it doesn't matter to him. i think these other companies are still learning those lessons, so they're just gonna take a little while to and it's not farther ahead or whatnot, but that's why i think he's doing public ipo. Speaker 1: okay. yeah. that makes sense. Speaker 0: expect capital raise for this 60,000,000,000 or more, placing it among one of the largest ipos in global history. we're back to openai. enterprise clients currently make up 40% of the revenue projected to reach fifty fifty parity with consumer lines by the end of twenty twenty six. and part of the simultaneous triad including spacex, 1,780,000,000,000 and it anthropics $9.06 5,000,000,000. so i guess my big problem is, is there almost $4,000,000,000,000, in these three companies of value, and will investors just jump all over any one of them or all of them? or is it too much? is it meaning that they're gonna bank on one or two of them? Speaker 1: yeah. well, the the there's two that obviously are the similar, which is anthropic and openai. but then spacex is different because spacex doesn't have just ai. it has hardware. it's got spacex. it's got it's got servers. it's got, data centers. it's got xai. it's got, what else is under there? is tesla under there? no. Speaker 0: if it's not, it will be. Speaker 1: spacex, xai, there was something else under there. yeah. Speaker 0: and, the new robots, i think the boring company maybe. i'm not there's other stuff there. but, definitely, spacex is a stronger, offering, but that's why it's at 1.78. like, there's hardware. there's other stuff involved. Speaker 1: oh, starlink. that's why i said, yes. Speaker 0: they've got the satellite. starlink. yeah. they've also getting paid billions of dollars, from, anthropic and other ai companies for their hardware. so anthropic's playing them 2 plus billion dollars a month, and one of the other ones are as well to host their hardware. so that's a interesting take on things. so the core engineering challenge driving the ipo, as you mentioned before, is the compute scaling law. training and running frontier language models requires exponentially expensive infrastructure. openai is attempting to fund these hardware scaling requirements while reconciling its new frontier governance framework with the eu's ai act, strict general purpose ai classification rule. so this is the most significant corporate structure transformation since the early two thousand tens, the wave of high growth, loss making tech debuts, but an unprecedented twist navigation that transitioned from a five zero one c three nonprofit foundation ancestry ancestry into a public benefit corporation. so we'll have to see how all this goes. there's a lot of money, happening in the markets right now. i'm not sure if openai is gonna be able to make that jump to enterprise or whether anthropic's gonna, completely take on that market. so it it's an interesting time. Speaker 1: yeah. Speaker 0: and, yeah, they continue to raise this money because they continue to have all the stuff going on. i've talked about this, the openai. we've talked about this phone that's supposed to be coming out, and that's gonna be hugely expensive. i expect it's not gonna do well, but that's, just me. and mark carney last week, i think it was last week, announced, its new canadian sovereign ai program. so what so as we start to see these, how does that affect these ipos when canada's planning to have its own government, ai that everybody can use? yeah. so we got a lot to think about here. we might as well, wrap this up. this ipo is the ultimate macroeconomic reality check that will definitely prove whether generative ai is self sustaining economic powerhouse or history's most expensive tech bubble. are you risking your own cash on openai, anthropic, or spacex stock on day one? or are you sitting on the sidelines until we see actual profit margins? let us know in the chat. we'd love to hear from you.