White House demands that the computer nerds tell them, given the program's input, if any arbitrary computer program will finish running or continue to run forever
Let's be clear about what this actually is.
Index providers didn't change their rules out of goodwill. They changed them because SpaceX is too big and too politically connected to exclude. A $1.5 trillion company going public and not landing in passive funds immediately would be embarrassing for the index industry.
But the consequence is real: $30 trillion in retirement money gets forced into SpaceX at whatever valuation Elon and the bankers set. No price discovery. No earnings track record requirement. No seasoning period to let the market find fair value.
The rules that protected passive investors since 2002 were waived in weeks.
If SpaceX is overvalued at IPO, every 401k in America owns it at the top.
@Hedgeye Letโs be clear what this is. The banks and hedge funds that provided Musk with liquidity to buy Twitter and to fund SpaceX and now want their money back, and theyโre changing the rules so that retail investors are left carrying the can.
Itโs a travesty.
Rule changes for the SpaceX $SPCX IPO:
Index providers waived the profitability requirement and cut the seasoning window from 90 days to 5.
This forces over $30 trillion in passive 401k and retirement money to buy SpaceX at IPO valuations.
Bloomberg Intelligence estimates S&P 500 funds must absorb 19% of SpaceX's float within 6 months.
Russell 1000 and Nasdaq 100 funds will absorb 24%.
The rules built to protect passive investors:
1. S&P 500 has required 12 months of trading and 4 quarters of GAAP profitability since 2002. Both waived.
2. Nasdaq cut its inclusion window from 90 trading days to 15.
3. FTSE Russell cut its to 5.
All three benchmarks are now structured to buy SpaceX at IPO pricing.
This river here is the official geographical border between Anthropic and OpenAI. On the other side cosmic horror, torment nexus, machine despotism, you build spyware for the govt and you like it. On this side civilization, Claude constitution, unceasing allegiance to the human race, you build spyware for the govt and you don't like it.
Anthropic studies how AI coding affects 52 professional developers:
> the group who used AI felt โlazyโ and noticed gaps in their understanding and the group which didnโt use AI felt the task was โfunโ
> AI significantly hurts skills formation of a new library by 17%
> AI didnโt actually make people faster. the time saved on not writing code was spent interacting with AI
> only people who fully delegated their work to AI were noticeably faster, but they learned the least
there are three AI usage patterns that preserved learning and three that really hurt it.
the first three patterns:
1. asking only conceptual questions
2. generating code, then asking follow-up questions
3. asking for explanations alongside writing code
and the three patterns hurting their learning:
1. complete delegation
2. starting on their own then increasingly relying on AI
3. debugging where they asked AI to fix things without understanding why
we can write a million essays about how the future Silicon Valley wants to build is underwritten by a deep disgust with / contempt for Being A Human, or we can just let them speak for themselves