Blue Owl cashes out part of SpaceX stake

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Blue Owl Capital sold roughly half of its SpaceX investment at a $1.25 trillion valuation, locking in about a 10x return, according to co-CEO Marc Lipschultz.

Blue Owl originally invested $27 million in SpaceX equity in 2021 through one of its technology finance funds after first building ties as an early lender. The firm’s remaining stake is still significant, while the partial sale secures major realized gains ahead of SpaceX’s expected IPO later this year.

SpaceX is reportedly targeting a public debut at a potential $1.75 trillion valuation, which could make it one of the largest IPOs in history. Blue Owl’s move reflects both confidence in future upside and a strategic decision to crystallize profits at already massive private-market valuations.

The sale also gives Blue Owl additional flexibility to offset potential credit-market risks, showing how private equity positions in top-tier tech firms can serve as major portfolio stabilizers.

Google Cloud leads as AI spending tops $700B

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Google has emerged as the standout performer in Big Tech’s AI infrastructure race after Google Cloud posted a 63% revenue surge, sharply outpacing rivals and reshaping investor expectations.

The strong growth, driven largely by enterprise AI demand, exceeded both Microsoft Azure and Amazon cloud growth rates, reinforcing Google’s strategy of commercializing its AI stack across chips, cloud and business tools.

Across major U.S. tech giants, projected AI-related capital expenditures now exceed $700 billion this year, rising from prior estimates near $600 billion. Google raised its own spending outlook further as demand continues to outstrip available compute capacity.

The market response highlighted a growing divide: investors are increasingly rewarding companies converting AI spending into visible revenue acceleration, while punishing those where returns remain less clear.

Musk says he missed OpenAI for-profit details

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Elon Musk testified in court that he did not read the “fine print” of a 2017 term sheet discussing OpenAI’s potential shift toward a for-profit structure, during ongoing litigation over the company’s evolution.

Under cross-examination, Musk said he focused only on headline-level information and believed assurances from Sam Altman and others that OpenAI would remain fundamentally nonprofit. OpenAI’s legal team presented emails suggesting Musk had earlier exposure to internal discussions around commercialization.

Musk’s lawsuit seeks governance changes, a return to nonprofit principles and $150 billion in damages, arguing OpenAI abandoned its founding mission. OpenAI counters that restructuring was necessary to secure capital for computing power and talent.

The trial could significantly influence OpenAI’s governance, public perception and future IPO trajectory.