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## S&P 500 Exclusion of SpaceX, OpenAI & Anthropic ### Decision The S&P 500 Index Committee rejected SpaceX's application for fast-track entry into the index and declined to waive its profitability eligibility rule for unprofitable AI firms including OpenAI and Anthropic (Ars Technica, June 2026). ### Eligibility Rule at Issue S&P 500 inclusion requires, among other criteria, that a company report positive GAAP earnings in its most recent quarter and cumulatively over four quarters. SpaceX, OpenAI, and Anthropic reportedly do not meet this threshold despite their massive market valuations. ### Market Implications - **No passive buying wave**: S&P 500 exclusion means index funds and ETFs tracking the S&P 500 — representing trillions in assets — will not be compelled to purchase shares, removing a significant automatic demand driver. - **Valuation pressure**: AI-sector companies that cannot access passive index inclusion must rely more heavily on active institutional demand to support elevated valuations. - **Precedent question**: The ruling raises questions about whether S&P will eventually modify its profitability criteria to accommodate the largest AI-era companies, as it has adapted rules historically. ### Broader Significance The decision crystallizes a structural tension in capital markets: the fastest-growing, most highly valued companies of the AI era may be systematically excluded from the benchmark index that drives the largest pool of institutional capital. This has downstream implications for index fund concentration, active management relevance, and the governance of index methodology. ### Potential Evolution Market pressure may prompt S&P Dow Jones Indices to revisit profitability criteria. Any rule change would be watched closely given its potential to unlock hundreds of billions in passive capital flows.