On June 12, Space X went public at a valuation of $1.75 trillion, the largest IPO in history, minting Elon Musk into the world’s first trillionaire. The company occupies a legitimate niche as a private spaceflight vendor and Starlink provider, but its future value hinges on Musk’s other venture, xAI. Musk merged Space X and xAI before the IPO, funneling capital into AI ambitions. Nearly 80 percent of its predicted $28 trillion total available market is tied to a hypothetical AI enterprise services market.

Despite risk disclosures—including that anticipated market opportunities like space tourism “do not currently exist”—investors clamored for Space X stock. The IPO was a mass delusion event. Although stock has since fallen, market behavior proves disclosures were immaterial. This rebukes progressive advocates who argued transparency would tame irrationality.

The AI boom’s financial structures are opaque. Private credit lenders like Apollo lent to xAI via off-balance-sheet subsidiaries to purchase GPUs. Calls for greater transparency and disclosure in private credit—echoed by Senator Elizabeth Warren—aim to democratize finance. Yet the Space X IPO shows the truth is out—and nobody cares. Demand was record-breaking despite unprofitability, proving that open markets do not self-govern.