Investor Jeremy Grantham warns the $75 billion SpaceX IPO mirrors late-1990s internet bubble risks amid AI-driven market exuberance.
Jeremy Grantham, known for predicting the Dot-com bubble burst, has cited SpaceX’s $75 billion IPO as a warning sign for the current AI-driven market rally. The offering, which could reach $86 billion including overallotment, echoes the late-1990s surge in internet stock IPOs that preceded a sharp decline.
Grantham, co-founder of GMO, previously called the top of the Dot-com bubble, which saw the Nasdaq plummet nearly 80% over several years. He recently described the market as the most expensive in history, drawing parallels between today’s AI investment frenzy and the overzealous internet spending of the late 1990s.
While SpaceX is not an AI pure-play, its AI investments and Elon Musk’s plans for orbital data centers align with Grantham’s concerns. The IPO’s scale and timing reinforce his view of a potential market top, though no immediate market reaction was noted.