Anthropic Confidentially Files for IPO, SpaceX Plans to Raise $75B
Anthropic has confidentially filed for an IPO, giving the AI company the option to go public once the SEC completes its review. Meanwhile, SpaceX is preparing to launch a record setting offering of its own, aiming to raise $75B at a $1.75T valuation as its roadshow kicks off Thursday.This week's private company news:Anthropic said in a, "Anthropic, PBC confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission for a proposed initial public offering of our common stock. This gives us the option to go public after the SEC completes its review. The proposed initial public offering will depend on market conditions and other factors. The number of shares to be offered and the price have not yet been set. This announcement is being published under Rule 135 of the Securities Act of 1933, as amended. It is not an offer to sell securities; nor is it a solicitation of an offer to buy them. Any offers, solicitations of offers to buy, or any sales of securities will be made only in accordance with the registration requirements of the Securities Act."SpaceX plans to raise a record $75B by pricing its IPO at $135 per share, selling 555.6 million shares and targeting a valuation of $1.75T, Reuters' Echo Wang, citing sources familiar with the matter. SpaceX's roadshow begins on Thursday.Base Power, a provider of home batteries for backup power, is in talks to raise around $1B at a $12B valuation, Forbes' Rashi Shrivastava and Anna Tong, citing four sources familiar with the matter. Ribbit Capital is in talks to lead the round, one of the sources said. Founded in 2023 by Zach Dell, son of billionaire computer pioneer Michael Dell, and Justin Lopas, Base Power installs and maintains large capacity home batteries which can serve as backup power if the main grid goes down.Some of the biggest capital raises by private companies this week include:AlphaSense– The AI platform announced the close of a $350M funding round valuing the company at $7.5B. The round was led by Vitruvian Partners, Accenture Ventures, and J.P. Morgan Asset Management, with additional new investors including D. E. Shaw Ventures and Pinegrove Opportunity Partners, along with existing investors including CapitalG, Goldman Sachs Alternatives, and Viking Global Investors. Publicly-traded companies operating in the same space include Microsoft, Alphabet, and IBM.Mach Industries– The defense manufacturer building advanced unmanned systems for modern defense raised $300M in Series C funding. The round was led by Infinite Capital and Ribbit Capital, valuing the company at $1.8B. Publicly-traded companies operating in the same space include Lockheed Martin, Northrop Grumman, and RTX.Coralogix– The data and AI platform for observability announced it raised $200M in Series F funding. The round was co-led by Advent, CPPIB, and Greenfield, with participation from Brighton Park Capital, bringing total funding in Coralogix to $550M. Publicly-traded companies operating in the same space include Datadog, Elastic, and New Relic.Town Inks– The personalized AI assistant raised $55M in Series A led by by Andreessen Horowitz, with participation from Forerunner Ventures and continued support from First Round Capital, Alt Capital, and Conviction. Publicly-traded companies operating in the same space include Avery Dennisonand HP Inc..Corgi– The company announced a $106M Series B1 round, led by TCV with participation from Prime Capital, Zone 2 Ventures, Oliver Jung, Leblon Capital, Kindred Ventures, Quadri Ventures, First Order Fund, Vocal Ventures, Nordstar, GSBackers, Repeat Ventures, 8188 Capital, and other strategic investors. "This fresh round of funding brings the company's valuation to $2.6 billion. The financing will support continued expansion of Corgi's full-stack insurance platform and launch into new lines of commercial insurance," the company stated. Publicly-traded companies operating in the same space include Nvidia, UiPath, and iRobot.Unicorns to watch this week:Galvanize Therapeutics– The commercial‑stage medical technology company pioneering pulsed‑electric‑field therapies for oncology and chronic lung disease has recently closed an oversubscribed $100M Series C. Publicly-traded companies in the operating space include Opko Healthand Adverum Biotechnologies.Runway– The generative‑AI multimedia platform — valued at $3B-plus — continues to expand its model suite and enterprise footprint across video, image, and multimodal creation. Publicly-traded companies in the operating space include Microsoft, Alphabet, and Nvidia.Celonis– The process mining and execution management software company remains a top candidate for a high profile tech IPO. Publicly-traded companies in the operating space include UiPath, IBM, and SAP.Mistral AI– The European AI model developer is reportedly targeting a $600M raise at a $6B valuation, continuing its rapid ascent as a frontier‑model competitor. Publicly-traded companies in the operating space include Nvidia, Microsoft, and Alphabet.iCapital– The alternative‑investment platform — estimated at a $7.5B valuation — continues to scale its private‑markets access infrastructure for wealth managers and institutions. Publicly-traded companies in the operating space include Blackstone, Apollo Global, and Blue Owl.Other IPOs to watch:Kardigan– The company has filed an initial public offering of shares of its common stock. The company has applied to list its common stock on the Nasdaq Global Market under the symbol "KARD." JP Morgan, Jefferies, Leerink Partners, and TD Cowen are acting as the underwriters for the offering.Quantinuum– The company priced 28M shares at $60.00. The deal size was increased to 28M shares from 26.5M and priced above the $53.00-$55.00 target range. JPMorgan and Morgan Stanley are acting as joint book running managers for the offering. Quantinuum is a quantum computing company offering a full-stack platform designed to make quantum computing deployable in real-world environments.Sunshine Silver Mining & Refining Company– The company announced the launch of its initial public offering of 20M shares of its common stock. In connection with the offering, Sunshine expects to grant the underwriters a 30-day option to purchase up to 3,000,000 shares of common stock. The IPO price is expected to be between $13.50-$16.50 per share. Sunshine's common stock has been approved for listing, subject to official notice of issuance, under the ticker symbol "SSMR" on the New York Stock Exchange.Innio– The company announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common shares. The timing of the offering, number of shares to be offered and the price range for the proposed offering have not yet been determined. Innio has applied to list its common shares on the Nasdaq Global Select Market under the ticker symbol "INIO." Innio designs, manufactures and services power systems under its Jenbacher and Waukesha brands. The company delivers power for applications including data centers, microgrids, grid stabilization, industrial energy and gas compression.Inspire Brands– The company announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock. Inspire Brands expects to use the net proceeds of the proposed offering to repay outstanding indebtedness under its existing term loan facility and pay offering fees and expenses."Private Markets" is The Fly's recurring series of stories on the latest moves in the private sector, largest unicorn companies and initial public offerings to watch. Fly subscribers, add $PRIVATE to your portfolio for alerts on breaking news in the startup and venture capital space.
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Microsoft Stock Seen as Once-in-a-Decade Investment Opportunity
- Significant Valuation Drop: Microsoft's stock is currently at its lowest valuation in a decade, despite the company thriving in the AI sector with a 123% annual revenue growth rate, indicating a potential buying opportunity due to market mispricing.
- Strong Cloud Growth: Microsoft's Azure platform has achieved a 40% revenue growth rate in the cloud computing space, which not only solidifies its position in a competitive market but also showcases the company's robust performance in the AI era, expected to drive future revenue growth.
- Stable Revenue Growth: Microsoft is growing its overall revenue at a healthy pace of 18%, with analysts projecting a 15% growth in Q4 of fiscal 2026 and 17% in fiscal 2027, indicating strong future growth potential for the company.
- Optimal Investment Timing: Given Microsoft's cash flow and the market's mispricing of its stock, now is an excellent time to buy Microsoft shares, as a return to normal valuation ranges could yield substantial returns for investors.
XLK Outperforms SPY with 34% Year-to-Date Return
- Significant Investment Returns: As of June 4, 2026, a $10,000 investment in the Technology Select Sector SPDR Fund (XLK) has grown to $13,434, achieving a year-to-date return of 34%, which significantly outpaces the S&P 500's 11% return, highlighting the robust performance of tech stocks.
- Key Growth Drivers: NVIDIA and Apple reported revenue increases of 85% and 16.6%, respectively, with NVIDIA's quarterly revenue reaching $81.6 billion and Apple's hitting a record $111.2 billion, showcasing how these two companies are driving XLK's outperformance.
- Concentration Risk: XLK has 40% of its assets concentrated in NVIDIA, Apple, and Microsoft, with NVIDIA and Apple accounting for 14.93% and 13.23%, respectively, indicating a heightened investment risk due to this concentration, especially during market volatility.
- Future Outlook: To maintain the 3:1 return spread over the S&P 500, it is crucial to ensure continued growth in hyperscaler capital expenditures, reduced reliance on the Chinese market, and stable revenue growth from Apple, as these factors will directly influence XLK's future performance.
Impact Analysis of SpaceX IPO on ETFs
- S&P 500 Policy Update: S&P Dow Jones Indices has updated its policy to exclude SpaceX from the S&P 500 for at least 12 months, which delays the anticipated impact of SpaceX's IPO on major indices, potentially affecting investor expectations and market sentiment.
- SpaceX IPO Scale: SpaceX is set to go public on June 12, aiming to raise $75 billion at a valuation of $1.77 trillion, a massive fundraising effort that will significantly impact market liquidity and could draw attention to other tech companies.
- ETF Weight Discrepancies: Both the Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF have an expense ratio of 0.03%, but the former is restricted in adding new stocks, while the latter will quickly purchase new IPOs, leading to differences in SpaceX's weight in each fund, influencing investor choices.
- Market Reaction Expectations: Given that SpaceX's IPO will affect its initial weight in the Vanguard Total Stock Market ETF, investors may prefer the latter for early exposure to emerging tech companies, thereby altering fund flows and market dynamics.
SpaceX IPO Scheduled for June 12, Valued at $1.77 Trillion
- Massive IPO Size: SpaceX is set to conduct its IPO on June 12, aiming to raise $75 billion with a valuation of $1.77 trillion, which will have significant ripple effects across the investment landscape, particularly impacting major indices and exchange-traded funds (ETFs).
- S&P 500 Inclusion Delay: Although SpaceX was initially expected to be fast-tracked into the S&P 500, S&P Dow Jones Indices rejected this proposal on June 4, meaning SpaceX and other megacap companies will have to wait at least 12 months post-IPO, potentially affecting market performance and investor confidence.
- ETF Holding Differences: Both the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF offer low-cost exposure with a 0.03% expense ratio; however, the latter will purchase SpaceX shares shortly after its IPO due to fewer index restrictions, resulting in a higher initial weighting for investors.
- Future Weight Changes: As the float of SpaceX shares increases, its weighting in the Vanguard Total Stock Market ETF will rise, while if it joins the S&P 500 in June 2027, its weighting will be based on market cap, indicating that investors should monitor share availability to optimize their investment strategies.
Nvidia's Market Value Surpasses $5 Trillion
- Significant Revenue Growth: Nvidia's latest quarter saw an 85% year-over-year revenue increase, highlighting strong demand in the AI chip market and further solidifying its position as the world's most valuable company.
- Competitors Closing In: Alphabet's market capitalization stands at approximately $4.45 trillion, trailing Nvidia but showing potential threats as its cloud service revenue grew 63% year-over-year, indicating strong growth momentum.
- Apple's Strong Performance: Apple reported a 17% year-over-year revenue increase to $111.2 billion in its latest fiscal quarter, with iPhone sales up 22%, suggesting sustained strength in the smartphone market that could drive future market value growth.
- Microsoft's Cloud Growth: Microsoft achieved an 18% revenue increase to $82.9 billion in its third fiscal quarter, with Azure and other cloud services growing 40%, and its AI business reaching a $37 billion annual revenue run rate, showcasing its potential in the AI sector despite a market cap of around $3.1 trillion.
Nvidia's $5 Trillion Market Value and Its Potential Challengers
- Market Leadership: Nvidia has become the first company to reach a market value of $5 trillion, and despite a recent pullback, it remains the most valuable company globally at $4.6 trillion, showcasing its strong competitive position in the AI chip market.
- Alphabet's Growth Potential: Alphabet's market capitalization is approximately $4.45 trillion, and despite a recent decline, its Google Cloud revenue grew 63% year-over-year to $20 billion, indicating strong momentum in AI that could help close the gap with Nvidia.
- Microsoft's Challenge: Microsoft has a market value of around $3.1 trillion, and while its AI business has reached an annual revenue run rate of $37 billion with a 123% year-over-year increase, it still needs sustained cloud growth and higher investor valuations to surpass Nvidia.
- Apple's Strategic Positioning: Apple, valued at over $4.5 trillion, has seen strong iPhone sales and rising service revenue, but its lag in AI could impact future growth, especially with a new CEO taking over, increasing market focus on its strategic transformation.
Microsoft Stock Seen as Once-in-a-Decade Investment Opportunity
- Significant Valuation Drop: Microsoft's stock is currently at its lowest valuation in a decade, despite the company thriving in the AI sector with a 123% annual revenue growth rate, indicating a potential buying opportunity due to market mispricing.
- Strong Cloud Growth: Microsoft's Azure platform has achieved a 40% revenue growth rate in the cloud computing space, which not only solidifies its position in a competitive market but also showcases the company's robust performance in the AI era, expected to drive future revenue growth.
- Stable Revenue Growth: Microsoft is growing its overall revenue at a healthy pace of 18%, with analysts projecting a 15% growth in Q4 of fiscal 2026 and 17% in fiscal 2027, indicating strong future growth potential for the company.
- Optimal Investment Timing: Given Microsoft's cash flow and the market's mispricing of its stock, now is an excellent time to buy Microsoft shares, as a return to normal valuation ranges could yield substantial returns for investors.
XLK Outperforms SPY with 34% Year-to-Date Return
- Significant Investment Returns: As of June 4, 2026, a $10,000 investment in the Technology Select Sector SPDR Fund (XLK) has grown to $13,434, achieving a year-to-date return of 34%, which significantly outpaces the S&P 500's 11% return, highlighting the robust performance of tech stocks.
- Key Growth Drivers: NVIDIA and Apple reported revenue increases of 85% and 16.6%, respectively, with NVIDIA's quarterly revenue reaching $81.6 billion and Apple's hitting a record $111.2 billion, showcasing how these two companies are driving XLK's outperformance.
- Concentration Risk: XLK has 40% of its assets concentrated in NVIDIA, Apple, and Microsoft, with NVIDIA and Apple accounting for 14.93% and 13.23%, respectively, indicating a heightened investment risk due to this concentration, especially during market volatility.
- Future Outlook: To maintain the 3:1 return spread over the S&P 500, it is crucial to ensure continued growth in hyperscaler capital expenditures, reduced reliance on the Chinese market, and stable revenue growth from Apple, as these factors will directly influence XLK's future performance.
Impact Analysis of SpaceX IPO on ETFs
- S&P 500 Policy Update: S&P Dow Jones Indices has updated its policy to exclude SpaceX from the S&P 500 for at least 12 months, which delays the anticipated impact of SpaceX's IPO on major indices, potentially affecting investor expectations and market sentiment.
- SpaceX IPO Scale: SpaceX is set to go public on June 12, aiming to raise $75 billion at a valuation of $1.77 trillion, a massive fundraising effort that will significantly impact market liquidity and could draw attention to other tech companies.
- ETF Weight Discrepancies: Both the Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF have an expense ratio of 0.03%, but the former is restricted in adding new stocks, while the latter will quickly purchase new IPOs, leading to differences in SpaceX's weight in each fund, influencing investor choices.
- Market Reaction Expectations: Given that SpaceX's IPO will affect its initial weight in the Vanguard Total Stock Market ETF, investors may prefer the latter for early exposure to emerging tech companies, thereby altering fund flows and market dynamics.
SpaceX IPO Scheduled for June 12, Valued at $1.77 Trillion
- Massive IPO Size: SpaceX is set to conduct its IPO on June 12, aiming to raise $75 billion with a valuation of $1.77 trillion, which will have significant ripple effects across the investment landscape, particularly impacting major indices and exchange-traded funds (ETFs).
- S&P 500 Inclusion Delay: Although SpaceX was initially expected to be fast-tracked into the S&P 500, S&P Dow Jones Indices rejected this proposal on June 4, meaning SpaceX and other megacap companies will have to wait at least 12 months post-IPO, potentially affecting market performance and investor confidence.
- ETF Holding Differences: Both the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF offer low-cost exposure with a 0.03% expense ratio; however, the latter will purchase SpaceX shares shortly after its IPO due to fewer index restrictions, resulting in a higher initial weighting for investors.
- Future Weight Changes: As the float of SpaceX shares increases, its weighting in the Vanguard Total Stock Market ETF will rise, while if it joins the S&P 500 in June 2027, its weighting will be based on market cap, indicating that investors should monitor share availability to optimize their investment strategies.
Nvidia's Market Value Surpasses $5 Trillion
- Significant Revenue Growth: Nvidia's latest quarter saw an 85% year-over-year revenue increase, highlighting strong demand in the AI chip market and further solidifying its position as the world's most valuable company.
- Competitors Closing In: Alphabet's market capitalization stands at approximately $4.45 trillion, trailing Nvidia but showing potential threats as its cloud service revenue grew 63% year-over-year, indicating strong growth momentum.
- Apple's Strong Performance: Apple reported a 17% year-over-year revenue increase to $111.2 billion in its latest fiscal quarter, with iPhone sales up 22%, suggesting sustained strength in the smartphone market that could drive future market value growth.
- Microsoft's Cloud Growth: Microsoft achieved an 18% revenue increase to $82.9 billion in its third fiscal quarter, with Azure and other cloud services growing 40%, and its AI business reaching a $37 billion annual revenue run rate, showcasing its potential in the AI sector despite a market cap of around $3.1 trillion.
Nvidia's $5 Trillion Market Value and Its Potential Challengers
- Market Leadership: Nvidia has become the first company to reach a market value of $5 trillion, and despite a recent pullback, it remains the most valuable company globally at $4.6 trillion, showcasing its strong competitive position in the AI chip market.
- Alphabet's Growth Potential: Alphabet's market capitalization is approximately $4.45 trillion, and despite a recent decline, its Google Cloud revenue grew 63% year-over-year to $20 billion, indicating strong momentum in AI that could help close the gap with Nvidia.
- Microsoft's Challenge: Microsoft has a market value of around $3.1 trillion, and while its AI business has reached an annual revenue run rate of $37 billion with a 123% year-over-year increase, it still needs sustained cloud growth and higher investor valuations to surpass Nvidia.
- Apple's Strategic Positioning: Apple, valued at over $4.5 trillion, has seen strong iPhone sales and rising service revenue, but its lag in AI could impact future growth, especially with a new CEO taking over, increasing market focus on its strategic transformation.
