Bank of America (BAC) warned that the expected SpaceX and Anthropic listings could pull money out of the same stock market that has been living off giant tech names, tight share supply, and a lot of investor hunger for anything tied to AI. The warning lands while Anthropic has signed a major compute deal with SpaceX, giving the Claude maker more power for its users and giving Wall Street another reason to stare at both private companies like they are already public. The problem is not that investors dislike the companies. The problem is size. SpaceX could seek a valuation above $2 trillion if it lists as soon as June, while Anthropic could aim for more than $900 billion if it goes public around October after its latest funding round. That is a lot of new stock for a market that is already expensive, already crowded, and already leaning hard on a small group of winners. At some point, somebody has to sell something to buy the new shiny thing. BofA says SpaceX and Anthropic could force funds to sell existing tech stocks Wall Street has been clearing the way for large IPOs under Trump’s push to loosen public and private market rules and “make IPOs great again.” Index firms have also been changing entry rules and free-float calculations so large new names can enter major benchmarks faster. BofA said those changes “smack of late-stage machinations,” meaning the market may be getting the kind of strange late-cycle setup that shows up when retail buyers chase hot deals while larger holders quietly reduce risk. Savita Subramanian, BofA’s equity and quant strategist, said the big risk is new supply. For years, stocks were helped by fewer shares being available to buy. Companies bought back stock, stayed private longer, got taken private, and lived in a world where low rates and easy money made that possible. That has helped support prices. That setup may be ending. Publicly traded securities fell to about 4,000 last year from more than 8,000 in the 1990s, based on data from the Center for Research in Security Prices. Savita wrote, “Say goodbye to the ‘equity shrinkage’ bull case,” adding that “an issuance deluge may be imminent.” The timing is awkward. The S&P 500 gained more than 10% in April, while the equal-weighted version rose only 6%. That means the rally was not spread evenly. It depended more on the Magnificent Seven, which makes up about one-third of the index. That group includes Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), and Tesla (TSLA). Passive funds are another issue. Savita said about 60% of US-domiciled assets are passively managed, and those portfolios are heavily packed with megacap tech. If SpaceX and Anthropic enter public markets at huge valuations, index-linked funds may need cash for the new listings. Savita wrote that passive funds would likely need to free up money for new issues, creating pressure on current holdings. Retirees may not be eager buyers either. BofA said older investors hold about $8 trillion in cash balances, but they are more likely to choose equity income than long-duration growth stocks. That matters because Anthropic and SpaceX would likely trade as high-growth names, not dividend plays. Anthropic signs SpaceX compute deal and raises Claude usage limits Cryptopolitan had previously reported that Anthropic said the new agreement with SpaceX will increase compute capacity for Claude, including Claude Code and the Claude API. The company said: “We’ve agreed to a partnership with SpaceX that will substantially increase our compute capacity. This, along with our other recent compute deals, means that we’ve been able to increase our usage limits for Claude Code and the Claude API.” The first change doubles Claude Code’s five-hour rate limits for Pro, Max, Team, and seat-based Enterprise plans. The second removes peak-hour limit cuts for Pro and Max accounts. The third raises API rate limits for Claude Opus models. The SpaceX deal gives Anthropic access to all compute capacity at Colossus 1, a data center with more than 300 megawatts of new capacity and more than 220,000 Nvidia (NVDA) GPUs available within the month. Anthropic also reiterated that its Claude trains and runs on different chips, including AWS Trainium, Google TPUs, and Nvidia GPUs. The company is also looking at extra capacity and said it has shown interest in working with SpaceX on multiple gigawatts of orbital AI compute. The smartest crypto minds already read our newsletter. Want in? Join them .
