this post was submitted on 02 Jun 2026
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Like, it looks like they want to cash out basically.
Going public means they can sell shares and take profit. Convert the hype into cash.
If you believe in the profit potential of AI, then you can argue they’re going public in order to fund additional investment in building data centers.
But if you’re skeptical of its long term profitability and / or you’re skeptical about this being a “winner takes all” market, then it looks like they’re simply cashing in their chips now before the hype breaks.
I am skeptical about it - on both counts, I think models are going to remain very expensive to operate so will have limited use-cases that are truly viable, and I think this won’t be a “winner takes all” market since the models are essentially interchangeable with each other in a way that end-users can struggle to even notice, so it starts to look more like a low margin commodity.
I think the insiders have also reached this conclusion. There are hints of this.
eg Microsoft raising their token prices means they’re now much less willing to subsidize usage in order to win market share.
Another example of how xAI / SpaceX are now actually leasing their compute time to Anthropic, which is profoundly weird business strategy to adopt - if they believe in Grok as a product - since they should be a direct competitor.