The president of Yardeni Research is dispelling fears that three major artificial intelligence (AI) companies going public – SpaceX, Anthropic and OpenAI – will cause the stock market to decline.
In a new blog post, veteran professional Ed Yardeni he says that “we are not affected” as some experts say that “AI-3” will “suck the air in the whole market.”
Elon Musk’s rocket firm SpaceX is expected to debut on June 12 while Anthropic and OpenAI are also planning their initial public offerings (IPOs).
Yardeni says that based on the IPO’s history, fears of a liquidation are unfounded.
“In any case, AI-3 should have no problem raising $200 billion in the IPO market, which has raised $232 billion in new funding in the past 12 months through April.
Yardeni also says that what AI-3 is expected to raise is a fraction of the $75.6 trillion Wilshire 5000 and $60 trillion S&P 500, adding that the companies will offer “a small amount” of shares to the public.
“The market value of the Wilshire 5000 is $ 75.6 trillion. It is close to $ 60 trillion for the S & P 500. Will these values increase by $ 4 trillion to $ 5 trillion when AI-3 goes public? Not based on free float, i.e. shares available for pubic sale (except for active stakes, central government shares, and participating governments).
SpaceX only floats about 4.3% of its shares to the public. The other two AI-3s can also provide free floats. “
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