And just like that—surprise!—one AI company bails out another AI company's grift.
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@raganwald Aw crud, guess I should transfer the last of my employee stock. The corruption of the stock index criteria is absolutely a grab on everyone's conservative retirement stock funds. It wasn't enough to let people choose risky mixes in their investments and to inflate the market generally with pension savings.
Check kiting via circular investment wasn't enough.
@jmeowmeow Also, if any of them had an ironclad business model, they'd gleefully allow their "competitors" to flame out and fail.
That they are supporting each other tells us that they know that if one fails before they all offload the junk onto the public, there will be a run on all their stocks.
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@jmeowmeow Also, if any of them had an ironclad business model, they'd gleefully allow their "competitors" to flame out and fail.
That they are supporting each other tells us that they know that if one fails before they all offload the junk onto the public, there will be a run on all their stocks.
@raganwald 100%, and if you and I are seeing it, why is the stock market not already in free fall, with Blackrock (to take one large fund manager) suing Standard and Poor's for bad faith?
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@raganwald 100%, and if you and I are seeing it, why is the stock market not already in free fall, with Blackrock (to take one large fund manager) suing Standard and Poor's for bad faith?
@jmeowmeow I think the idea is that since it's a passive fund, they aren't incentivized to make money for the fund, nor penalized for losing money for the fund. Their job is simply to keep it properly balanced and collect low fees for their trouble.
I may have an overly simplistic view of passive funds.
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@jmeowmeow I think the idea is that since it's a passive fund, they aren't incentivized to make money for the fund, nor penalized for losing money for the fund. Their job is simply to keep it properly balanced and collect low fees for their trouble.
I may have an overly simplistic view of passive funds.
@raganwald No penalty for passive accessory to financial malfeasance, you're probably right. Not a bang but a whimper, if that. The dog that did not bark.
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
@raganwald Soooo, no one wants to use their AI stuff except some government contracts for white supremacist agents or something. So Google gets to buy the compute running on dirty energy to meet their demands without sullying their rep while they build out. Apple doesn't want to play but feels they have to meet the market so it's paying for Google AI to put inside Siri on iOS devices. Meanwhile, doesn't Google still pay Apple to make Google search the default on iPhone?
Am I getting all this? -
@ilia That is from Thursday, June 4th. What the S&P 500 said is that they are not changing the rules for xAI ("SpaceX').
Whereas, xAI announced the Google deal the next day. The assertion is that adding the Google deal to their S-1 allows them to claim profitability, thus making them eligible under the existing rules for inclusion without changes to the rules.
I believe that both sets of reporting can be true at the same time.
UPDATE: They still must wait four quarters.
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@raganwald Soooo, no one wants to use their AI stuff except some government contracts for white supremacist agents or something. So Google gets to buy the compute running on dirty energy to meet their demands without sullying their rep while they build out. Apple doesn't want to play but feels they have to meet the market so it's paying for Google AI to put inside Siri on iOS devices. Meanwhile, doesn't Google still pay Apple to make Google search the default on iPhone?
Am I getting all this?@PizzaDemon Seemingly so! But it gets better.
Google owns an estimated 5% stake in xAI ("SpaceX"). Now if xAI can obtain a valuation of 90+ times revenue, and Google gives them 11 billion a year, that makes the entire company
worth 990 billion more. 5% of 990 billion is 49.5 billion, so by promising to pay 11 billion they inflate their own equity by 49.5 billion.All they have to do is sell their stake and then exercise their 90 day cancellation option.
What a great company to go public.
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
@raganwald Diversify into European and Asian stocks.
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
@raganwald
S&P 500 should know to wait as Elon is always promising and not delivering. -
@raganwald Aw crud, guess I should transfer the last of my employee stock. The corruption of the stock index criteria is absolutely a grab on everyone's conservative retirement stock funds. It wasn't enough to let people choose risky mixes in their investments and to inflate the market generally with pension savings.
Check kiting via circular investment wasn't enough.
@jmeowmeow @raganwald where do you run to? Where do you hide?
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@ilia That is from Thursday, June 4th. What the S&P 500 said is that they are not changing the rules for xAI ("SpaceX').
Whereas, xAI announced the Google deal the next day. The assertion is that adding the Google deal to their S-1 allows them to claim profitability, thus making them eligible under the existing rules for inclusion without changes to the rules.
I believe that both sets of reporting can be true at the same time.
UPDATE: They still must wait four quarters.
S&P made it clear the index inclusion rules would continue to require 4 quarters of reported profitability. Being able to "claim" future profitability doesn't enter into it. SpaceX's inclusion in NASDAQ 100 and Russell indices is bad enough (Vanguard etc) but they're not going to be in SP500 for the next year, unless the rules change. And hopefully, never.
@raganwald @ilia -
And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
-
And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
@raganwald
Not having any kids keeps playing out for me. -
S&P made it clear the index inclusion rules would continue to require 4 quarters of reported profitability. Being able to "claim" future profitability doesn't enter into it. SpaceX's inclusion in NASDAQ 100 and Russell indices is bad enough (Vanguard etc) but they're not going to be in SP500 for the next year, unless the rules change. And hopefully, never.
@raganwald @ilia@osma @raganwald @ilia The S&P 500 delists unprofitable companies, and they already stated up front that SpaceX has to show a history of profitability and other factors before it qualifies for consideration.
With them losing $15 to $160 Billion a year, $11 Billion a year is hardly going to bail them out. Even going public does not bail them out in any way that fools the index.
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@osma @raganwald @ilia The S&P 500 delists unprofitable companies, and they already stated up front that SpaceX has to show a history of profitability and other factors before it qualifies for consideration.
With them losing $15 to $160 Billion a year, $11 Billion a year is hardly going to bail them out. Even going public does not bail them out in any way that fools the index.
Profitability is often sacrificed for growth, for example Amazon was unprofitable for 6 years after going IPO, uber 4 years, I am sure there many other similar examples
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
Absolutely thievery. I need to be off Google services ASAP.
(Edit: I long ago tapered off my use of their services to a minimum, but I'm still using Gmail. Time to end that too.)
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And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
@raganwald Google paying $920m per month for access to Melon Husk owned computers is ludicrous. That is close to $1 billion per month. Does not make sense. You could feed and educate a lot of people for that mount of wasted money.
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Profitability is often sacrificed for growth, for example Amazon was unprofitable for 6 years after going IPO, uber 4 years, I am sure there many other similar examples
-
And just like that—surprise!—one AI company bails out another AI company's grift. Google agreeing to rent compute from xAI (cough, "SpaceX") magically makes them eligible for inclusion in the S&P500.
Americans, they are looting your life savings, the ones you earned through labour that they are gleefully replacing. Your descendants will never have the chance you had.
https://techcrunch.com/2026/06/05/google-will-pay-spacex-920m-per-month-for-compute/
We are watching a tech/AI-bubble come crashing down in real time.
Proof that the "market" N.E.V.E.R. learns.
