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Today, Explained

AI goes IPO

02 Jun 2026

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What recent IPO announcements are shaking up the AI industry?

0.537 - 12.147 Sean Rameswaram

Big news this week for all my Gordon Geckos, my Robin Hooders, my Claude Squad Anthropic, which is newly the most valuable AI company in the world, announced it would be going public.

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12.167 - 40.63 Sean Rameswaram

That news follows reporting that OpenAI plans to go public as soon as September, and that that news follows reporting that SpaceX, which also considers itself an AI company, will be going public in maybe just a few weeks from now. Welcome to the era of the Omega IPO. We are about to see millionaires, billionaires, and yes, probably even the world's first trillionaire created overnight.

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40.71 - 58.438 Sean Rameswaram

And yes, it's that guy. This is the chainsaw for bureaucracy. Chainsaw. But all the tech bros who are going to make all the money, they need our money way more than we need their products. And we're going to remind you why on today's Explain from Vox.

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61.507 - 64.813 Unknown

Hey, chat. Introduce Today Explained, the podcast.

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64.833 - 68.219 Sean Rameswaram

Of course. Today Explained is a daily news podcast from Vox.

68.719 - 74.77 Unknown

Each episode takes a single... No, just introduce it like you're introducing the show. Like, this is Today Explained.

74.79 - 98.634 Sean Rameswaram

Ah, got it. This is Today Explained. OK, so all the big AI companies are going to IPO, even the one that you previously thought was a spaceship company. And their IPO is the one we know the most about. So we asked Tim Higgins, who writes about Elon and SpaceX for The Wall Street Journal, to help us separate the facts from the fantasy of this company. Absolutely.

98.674 - 137.7 Sean Rameswaram

This is about this bright future that Musk is selling. And for a lot of people, they also hope they can make a lot of money. Giving some credence to some of this is the success that Musk has had with Tesla, another company that, when it was created and went public in 2010, There were a lot of people who were like, yeah, yeah, right. A startup car company selling electric cars.

138.301 - 141.565 Sean Rameswaram

The likelihood of success seemed very unlikely.

Chapter 2: How does SpaceX's IPO differ from Tesla's IPO?

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401.133 - 428.745 Sean Rameswaram

I want to underline something you just said, Tim. This company is not profitable. Now, I'm no day trader or anything like that, but... I believe investing in a company that's not profitable can be a risky venture. Obviously, when a company goes public, we get to have a greater understanding of its books. Have you taken a look at any of these books yet?

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429.185 - 460.238 Sean Rameswaram

Are there any flags of a certain color that you could tell us about? There are a lot of red flags. The business perhaps is not growing as fast as some had expected. The losses are bigger than expected. AI loss from operations for 2025 increased by about $4.8 billion to $6.4 billion. But the thing that is probably worrisome to most is the way that the company is structured, the power.

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461.039 - 473.84 Sean Rameswaram

A lot of power here is going to be centered on Elon Musk. He will control 85% of the voting power, which is rather remarkable. It essentially means that his power is unquestionable.

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475.182 - 480.651 Tim Higgins

This is the chainsaw for bureaucracy. Chainsaw!

481.559 - 500.074 Sean Rameswaram

There are some other maneuvers within the corporate governance that will make it hard for shareholders to sue if they don't like things. It'll be very hard to really have the kind of voice that they might have at other publicly traded companies.

501.353 - 517.918 Sean Rameswaram

You know, when we talk about data centers in space, it reminds me of a recent show we did on humanoid robots and what feels like empty promises Elon Musk has made there. He thinks that Optimus, which is the name of Tesla's robot, is going to be, you know, he makes all sorts of wild claims.

517.938 - 523.226 Unknown

It's going to be the most productive, the most profitable product ever invented.

523.386 - 526.23 Tim Higgins

I think everyone on Earth is going to have one and going to want one.

Chapter 3: What are the financial challenges facing SpaceX and its AI ventures?

1160.91 - 1163.194 Sean Rameswaram

They're embroiled in a number of lawsuits.

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1163.174 - 1168.979 Maria Sharapova

OpenAI is being accused of playing a role in a deadly mass shooting at Florida State University in April of last year.

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1169.039 - 1189.598 Sean Rameswaram

At least seven families are suing tech giant OpenAI, claiming that its chat GPT program drove people to suicide and harmful delusions. Sam Altman, the CEO, was running it effectively as a startup composed of little startups within it, and was like, oh, well, we'll just see which one of them wins. And that's maybe not the best way to run a company.

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1189.618 - 1210.776 Sean Rameswaram

It's a fine way to run a portfolio, but a company is not a portfolio. Liz, you're very tapped into this world out there in Silicon Valley and you were at the trial between Altman and Musk. And it sounds like these companies are all being talked about in the same breath, even though two of them are very specifically AI companies and one of them wants to colonize Mars. Why is that?

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1210.816 - 1244.318 Sean Rameswaram

Is it just because they all may IPO soon? I think that's part of it. I also think there's been this investment thesis that frontier AI models are effectively going to be a boom on the scale of like Internet 1.0, if you remember 1999. 1999! This is sort of the moment where we're going to find out who's Google and who's Amazon and who's Pets.com, right?

1244.479 - 1246.322 Tim Higgins

Pets.com, because pets can't drive.

1246.502 - 1266.396 Sean Rameswaram

And so I think that's why people are talking about them in this way, because it's not just these three companies that are AI companies. You know, like, obviously, Google has an AI arm that is very good. But then you have companies like Databricks. Which you maybe haven't heard of. Can't say I know her. Yeah. This is a perfectly fine company. It's got a business.

1267.158 - 1288.335 Sean Rameswaram

But it's sort of not in that conversation because I don't think people expect it to be like one of the behemoths in the way that they're sort of looking at these three as like the potential behemoths of this generation of technology. This reminds me that, you know, when social media companies went public, they started prioritizing things like shareholder profit rather than safety.

1288.375 - 1306.02 Sean Rameswaram

I think Facebook meta, probably the most prominent example of this. Do we want the still mostly dudes holding our future in their hands to be beholden to market forces and profits above all else?

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