Reid Hoffman, co-founder of LinkedIn, criticized the artificial intelligence strategy of Space Exploration Technologies Corp. and the performance of xAI during a recent appearance on the Pioneers of AI podcast. Hoffman argued that SpaceX is not an AI company and suggested its recent acquisition of Cursor was an attempt to use its market capitalization to buy its way into relevance rather than demonstrating inherent capability. He characterized the company as a "premium-priced CoreWeave," referencing the cloud infrastructure provider.

Hoffman detailed significant challenges facing xAI, noting that all of its founders have departed and the company is on its "third restart." He described xAI's efforts to build foundational models as a "complete train wreck," a characterization he attributed to Elon Musk himself. These comments follow SpaceX's public listing on June 12, where AI featured prominently in its IPO narrative, and the subsequent announcement of the Cursor acquisition.

SpaceX has recently experienced extreme volatility, reportedly losing $1 trillion in market value in a single week. Despite this equity decline, the company successfully raised $20 billion in debt, indicating a divergence in sentiment between equity and credit investors. The stock has also drawn comparisons to meme stocks, with CNBC's Jim Cramer likening it to GameStop Corp.

AI Market Outlook

Despite his critique of SpaceX, Hoffman expressed optimism about the broader AI sector. He dismissed the idea that OpenAI and Anthropic are direct rivals, arguing the market is large enough for both to achieve substantial success. "There’s a lot of room for both of them to win incredibly," Hoffman stated. He also voiced concern over the U.S. government's decision to compel Anthropic to withdraw its Fable and Mythos models, criticizing the lack of a clear rationale behind the move.

Hoffman's comments come as he transitions away from corporate board roles to focus on his startup, Manus. He recently left Microsoft Corporation's board after nearly a decade and departed from OpenAI's board in 2023 to avoid conflicts of interest with his investments through Greylock Partners.

OpenAI Financials

Separately, OpenAI's confidential IPO filing has revealed significant financial losses. The company's net loss reportedly widened to about $39 billion in 2025 from $5 billion in 2024. However, its adjusted loss, excluding restructuring and other non-cash charges, was $8 billion. The company spent roughly $34 billion during the year, allocating $19 billion to research and development and nearly $6 billion to sales and marketing.

Former Securities and Exchange Commission Chair Gary Gensler warned Tuesday that a “great rebalancing” could unfold in Space Exploration Technologies Corp. (NASDAQ: SPCX) shares as lockup restrictions begin to expire, allowing early investors to take profits following the company's blockbuster public debut. Gensler told Bloomberg Television that many pre-IPO backers are likely to “take risk off the page” as the lockup shares become eligible for sale, potentially reducing their exposure by a third, half, or even three-quarters. He cautioned that the resulting selling pressure might not be limited to SpaceX, suggesting that venture capitalists and sovereign wealth funds selling shares could create downward pressure across the entire market.

SpaceX is preparing for a series of share unlocks that will gradually increase the stock's public float over the next 14 months. According to the lockup schedule, only about 5% of outstanding shares are currently available for trading. The free float is projected to rise steadily through the second half of 2026, increasing from 11.8% in August to 25.1% by late October. This expansion is anticipated to accelerate, reaching 40% by December and 50.8% by June 2027.

Musk Unlock Draws Attention

The most significant event on the horizon is scheduled for June 12, 2027, when Elon Musk's 46.1% stake becomes eligible for sale. The chart estimates the free float could jump from roughly 50.8% to 96.9% in a single day, with the remaining shares becoming eligible by September 2027. While eligibility does not guarantee that insiders will sell, the sheer scale of the potential unlock represents one of the largest unlock events for a mega-cap stock.

Historical Context of Lockup Expirations

The prospect of a large unlock is not unique to SpaceX. Other technology giants have faced similar dynamics during their early public years. In each instance, the anticipation of new supply became a focal point for investors, often driving market sentiment as much as actual selling activity.

Market Performance and Valuation

SpaceX debuted on the Nasdaq on June 12 at $135 per share and surged nearly 19% in its first trading session. The stock has since cooled from its highs, shedding more than $400 billion in market value on Monday. SpaceX's valuation stands at roughly $2.03 trillion, down from a peak of $2.9 trillion reached on June 16. SPCX closed 0.98% higher on Tuesday at $156.11, after declining 16.43% on Monday. Gensler added that potential listings from Anthropic and OpenAI could further test investors’ appetite for AI-related equities as more private-market winners seek access to public capital.