The AI IPO wave is about to test Wall Street’s appetite

OpenAI confidentially filed for an IPO late Monday, joining SpaceX and Anthropic in preparing to go public, signaling a significant wave of AI-related offerings on Wall Street. SpaceX is reportedly seeking approximately $75 billion, while OpenAI and Anthropic are expected to raise substantial amounts, potentially exceeding Alibaba's 2014 record of $22 billion. Perplexity, with a planned 2028 IPO, remains a wildcard. The sheer volume of capital sought presents a critical juncture for both the AI industry and the broader economy, testing investor appetite for mega-IPOs. The bull case for these companies rests on their unprecedented revenue growth, particularly for OpenAI and Anthropic. SpaceX, leveraging its established rocket business, is heavily investing in xAI and developing large-scale AI data centers in space, aiming for significant future growth. Investors may prioritize the long-term potential of these AI ventures over current losses, anticipating exponential growth if AI adoption aligns with executive visions, such as that of OpenAI CEO Sam Altman. These upcoming IPOs are poised to create significant wealth for employees, potentially generating thousands of millionaires and numerous billionaires. Investors are hopeful for similar financial gains as the AI sector expands. The AI industry has already contributed to elevated valuations for the S&P 500 and its constituent tech stocks, pushing them above historical averages. The success of these offerings could further solidify AI's impact on market performance.