S&P 500 Bars SpaceX Entry and Holds the Line on Profit Rules for OpenAI and Anthropic

*The index will not waive its profitability requirement, keeping three high-profile companies outside its passive-fund inflows.*

S&P 500 index rules require consistent profits. SpaceX, OpenAI, and Anthropic all fail that test, so the committee rejected their applications without exception.

The decision blocks SpaceX from the automatic buying that comes with index inclusion. Passive funds tracking the S&P 500 hold trillions and would have added the company to their portfolios on a set schedule. Without that flow, SpaceX must continue to raise capital through direct rounds or debt.

OpenAI and Anthropic face the same barrier. Both firms generate revenue yet remain unprofitable at scale. S&P declined to create a carve-out, even though each company has reached valuations above $100 billion in private markets.

What the rule actually says

Committee criteria include four consecutive quarters of positive GAAP earnings. SpaceX has never posted such results. The AI labs have reported losses tied to heavy compute spending. The standard has stayed consistent across prior applicants; waivers are rare and usually limited to spin-offs from already-profitable parents.

Capital access impact

Index membership lowers a company’s cost of equity by widening its shareholder base. Investors who track the benchmark cannot buy shares until inclusion occurs. SpaceX has raised more than $10 billion in private rounds; losing the S&P route removes one low-friction channel for future rounds.

Why it matters

The refusal shows that index rules still favor mature earnings over rapid valuation growth. Companies that rely on private markets for capital will keep facing that friction until they produce sustained profits or the index changes its criteria.

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Sources:

• Ars Technica

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