On June 4, 2026, the S&P Dow Jones Indices rejected SpaceX’s request for accelerated entry into the S&P 500, shutting down what would have been a $14 billion passive fund windfall. The decision ends Elon Musk’s attempt to bend indexing rules that have governed trillions in retirement savings for decades. It also blocks the path for other unprofitable AI giants — including OpenAI and Anthropic — that had been counting on similar treatment after their own expected debuts.
SpaceX asked for three major concessions: a six-month waiting period instead of twelve, a waiver of the 10 percent public float requirement (the company plans to offer just 3 percent of shares), and an exemption from profitability tests despite carrying $29 billion in debt. The index provider consulted for a month, then refused all three. SpaceX will wait the standard year like everyone else — assuming it can deliver consistent profits by then. The Nasdaq and FTSE Russell both granted fast-track access to their smaller indexes, but the S&P 500 guards $7.5 trillion in passive funds and opted to hold the line. Morningstar analysts valued SpaceX at $780 billion days before the ruling — less than half the $1.75 trillion IPO target — citing strength in Starlink and rocket launches but little visibility on AI data center returns.
IBM Allegedly Hid Three Breaches — And Kept Selling Cybersecurity
In a lawsuit unsealed this week but filed in 2020, William Barlow — IBM’s vice president of threat intelligence until August 2019 — accused the company of concealing three network breaches by foreign governments and continuing to sell cybersecurity services to the U.S. federal government. Barlow alleged that Chinese hackers linked to APT 10 breached IBM’s core network more than 56,000 times between 2013 and 2016, compromising nearly 400 accounts and almost 200 systems across eighteen countries. In March 2017, the Five Eyes intelligence alliance warned IBM of the intrusion. An internal investigation concluded four servers were compromised, but the company reportedly failed to keep access logs — a basic security practice — making further forensic work impossible.
Barlow also alleged that two IBM subsidiaries were breached after acquisition: Trusteer (a cybersecurity startup bought in 2013) in 2018, and Truven (a healthcare data firm acquired in 2016) multiple times. In both cases, IBM allegedly failed to investigate or disclose the incidents. The U.S. Department of Justice declined to intervene when the suit was filed six years ago. IBM spokesperson Miki Carver said the company is confident its actions followed the law but declined to address specific allegations. Jason Brown, Barlow’s lawyer, told TechCrunch his firm will aggressively litigate the matter, adding that a company cannot sell cybersecurity to the federal government while allegedly harboring such vulnerabilities.
Google Pays $920 Million a Month — To Rent Half of SpaceX’s Compute
On June 3, 2026, SpaceX disclosed a deal to lease roughly 110,000 NVIDIA GPUs and related infrastructure to Google from October 2026 through June 2029 at $920 million per month. The agreement mirrors a May pact with Anthropic, which pays $1.25 billion monthly for the full capacity of SpaceX’s Colossus 1 data center near Memphis. Google’s deal appears to reserve about half that compute, though SpaceX did not specify which facility Google will use. CEO Elon Musk previously suggested Colossus 2 would stay reserved for xAI.
Google framed the arrangement as short-term bridge capacity to meet surging demand for Gemini Enterprise, its agent platform, which the company said exceeded internal forecasts. Yet Google is already the world’s largest single owner of AI compute by some estimates. Parent company Alphabet committed more than $180 billion in capital expenditures for 2026 and signaled that figure will rise significantly in 2027. To fund the buildout, Alphabet recently announced an $80 billion equity sale. Both parties can cancel the agreement with 90 days’ notice after December 31, 2026. If SpaceX fails to deliver the committed GPU count by September 30, 2026, Google may terminate immediately or accept a reduced allocation at lower fees. SpaceX filed the disclosure one week before its stock begins trading on the Nasdaq, aiming to raise around $75 billion at a $1.75 trillion valuation. Google is a longtime investor, with a stake now expected to exceed $100 billion post-IPO.
Supabase Doubles to $10 Billion — On the Back of Vibe-Coding Bots
On June 5, 2026, Supabase — the open-source Postgres database popular among AI coding tools — closed a $500 million Series F led by GIC at a $10 billion pre-money valuation, bringing post-money value to $10.5 billion. The round comes just eight months after a $100 million raise at $5 billion in October 2025, which itself followed a $200 million round at $2 billion. Database launches on Supabase have grown over 600 percent in the past year, with over 60 percent initiated by AI tools rather than human developers. The startup now claims nearly 10 million developer users, double the figure from eight months ago.
CEO and co-founder Paul Copplestone credited Claude Code, Codex, Bolt, and Replit for expanding the pool of people who can build software. Supabase also launched Multigres this week, a management layer it describes as an operating system for Postgres, designed to simplify tasks like read replicas, failovers, and backups as apps scale. Copplestone has refused multimillion-dollar enterprise deals that would force product compromises, sticking instead to his own roadmap — a reverse strategy that continues to work. Stripe, Georgian, and Salesforce Ventures joined existing investors in the round.
The gatekeepers of passive capital just reminded the world that size does not override discipline. SpaceX’s rejection by the S&P 500 signals that even a $1.75 trillion ambition cannot shortcut profitability tests or seasoning periods when trillions in index funds are at stake. Meanwhile, Google is paying nearly $1 billion monthly for compute it already dominates, IBM allegedly concealed breaches while selling federal cybersecurity, and Supabase doubled its valuation in eight months on the strength of bots writing code. Together, these moves sketch a market where AI infrastructure spending has detached from earnings visibility, legacy vendors face accountability gaps that litigation is starting to close, and indexing rules still guard retirement savings from speculative froth — at least for now.
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AI Ludens — a creator who works with AI as if it were play.
“Ludens” is Latin for “the one who plays,”
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