Slate Money Spice World
Apr 4, 2026
A deep dive into OpenAI’s staggering $122 billion private raise and what it means for future fundraising and public markets. A surprising takeover where a smaller spice company acquires a giant food division and why that rattles investors. A breakdown of the WNBA’s landmark labor deal and the economist credited with shaping it.
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AI IPOs Could Supercharge Public Market Capital
- Massive AI IPOs could re-energize public markets by supplying unprecedented primary capital and forcing index funds to buy at large weights.
- Felix Salmon explains book runners could sell directly to index funds, making huge public raises easier if these firms join major indexes.
Index Concentration Risk Rises With Loss-Making AI Giants
- If mega-cap AI companies enter indexes without earnings, index concentration risk increases because those stocks carry hope-based valuations.
- Elizabeth Spiers and Felix contrast high-earning mega-caps like Nvidia with loss-making AI firms that would skew index risk profiles.
Trillion Dollar Valuations Require Huge Faith In Future Profits
- OpenAI's revenue run-rate (about $24 billion/yr from $2 billion/mo) still implies very high revenue multiples at trillion-dollar valuations.
- Felix Salmon highlights that a trillion-dollar valuation on that revenue equates to an extreme multiple with no profits.