r/stocks
SpaceX, OpenAI, Google etc. - they're all asking for billions from investors. Where is it gonna come from?
Author fears massive AI IPOs and Google's $85B stock offering will drain liquidity from existing AI stocks, prompting a market exit.
- Massive upcoming AI IPOs and secondary offerings will require hundreds of billions in new capital.
- This massive capital raise could drain liquidity from existing AI stocks as investors sell to fund new allocations.
- Current market weakness might be an early sign of this liquidity drain.
SpaceX, Anthropic, and OpenAI all want to IPO soon. Google is selling a new round of $85B worth of stock. So we're easily looking at hundreds of billions of dollars into AI. Importantly, this is new capital, not buying and selling existing stocks. So where will this money come from? Most importantly, will this money come from investors selling existing AI stocks? Is this what we're seeing now? If so, is it time to pull out for a few months and invest somewhere else entirely?
Google is going to give $10 billion to OpenAI, who will give that to SpaceX, who will give it to Nvidia, and they will then invest it into Google.
Then 6 guys in black leather jackets will stand on stage and talk about the future of "AI GPU Search Engines running from a Space Cloud Server Farm!" It will be called "NvIdAIXSpaceoogle!"... The Trump will pump all their tickers on social before the Treasury both buys all of their stocks.
It’s funny because this is true
Google has been making some really damn smart investment moves over the past few years
Capital G has talent on par with top VC/IB’s
Long term hold on nerds.
Seems like it works out for them no matter what, if these crazy IPOs pop the bubble they at least got ahead of it and capture some of that easy money, if everything works out there will they'll be needing tons of money to provide their services to these companies anyway.
The market needs to get realistic about Space X. Only starlink is profitable the rest is just a typical Elon Musk "trust me bro" investment. Google and Nvidia are ahead of Tesla on self driving cars. AMPX and HPQ silicon Inc is ahead of Tesla on silicon batteries.
I wonder how much of Starlink being profitable comes from them manipulating the books so that what they are spending to launch all these satellites isn't being properly atributed to Starlink.
Where it always comes from... margin
Until it doesn't.
Then it comes from your taxes and inflation.
Always has been.
Always will be.
Your grandmas 401k
Not Intel grandma’s
Tree fiddy.
they are making more profits than Elon's fantasies.
Lots of places.
For the initial 15 day period? It wouldn't surprise me if we see a bunch of cryptocurrencies tank hard. There's a fair bit of overlap between Crypto Bros and GenAI Bros (it's not quite a circle...), and already Bitcoin's fallen from 81,240 back on May 13 down to 62,093. Etherium's dropped by a similar amount too (and it's kinda eerie how well the two graphs line up over the last month).
Its never been stable, of course (one reason why its shit as a currency), but the timing is... interesting, to say the least.
Wait what?
Thats just not how markets work. If people sell $100b in equity positions someone else bought those $100b. No money entered or left "the market" in aggregate. This is about new capital needing to flow into equities overall.
I guess you don’t hold any index funds / ETFs.
from your bank account