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It’s AI IPO-palooza and Perplexity will not be left out. CEO Aravind Srinivas told CNBC on Monday night that the company will hit the public market in 2028 regardless of how rival Anthropic and OpenAI’s IPOs pan out.
“Agnostic of these two companies, we were planning for something in 2028 so that still remains the case,” he said.
Fresh off a $65 billion funding round, Anthropic filed to go public last week. It’s valued at $965 billion, the largest ever for a private company. Rival OpenAI filed yesterday, with a slightly less eye-watering private valuation. SpaceX, inclusive of Grok-maker xAI, is on its roadshow trying to convince everyone that the addressable market for Elon Musk’s rocket play is worth nearly 90% of the U.S. GDP. Shares will begin trading on the Nasdaq June 12.
Beyond the optics of four AI companies going public one after another, it’s sure to be a test of how the market really values the countless billions poured into LLMs and the infrastructure that supports those models. And whether the business case actually materializes. We’re not the first publication to point out that the value of these companies is rather circular. But sunlight is the best disinfectant, and the process of going public and being subject to the whims of millions of institutional and retail investors will air out whether there’s a real path to profitability.
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That fact is not lost on Srinivas. “I certainly think there will be ripple effects if they don’t go well, like there is no sugar-coating that,” he said. “I think it’s important for the AI industry that these IPOs go well.”
He’s right. If they immediately trade down and stay there, panic may spread that Claude and ChatGPT aren’t yet ready to eat the world. And as costs rise, companies may realize that humans are, in fact, good at some things that chatbots aren’t.
So, watch how SpaceX trades on Friday. That will be the first indicator of how the public markets receive AI, outside of Musk’s cult of personality.
