Elon Musk became the world’s first trillionaire last week, after SpaceX debuted on the stock market with a valuation of $1.77tn. Days later, the company overtook Amazon to become the fifth most valuable company in the world, briefly hitting $2.97tn. But for millions of Americans whose retirement savings are tied to index funds, the milestone has sparked unease rather than celebration.
“We’ve all been forced into a giant casino,” said Tim, a 62-year-old engineer based in Alameda, California. His retirement is in the S&P 500 – not out of choice, he insists, but because staying out of the stock market means losing ground. “There’s really no way for the average person to diversify,” he said. “I’ve never wanted to participate in the so-called AI bubble.”
“Americans say their retirement savings are being forced into a 'giant casino' as SpaceX’s $1.77tn IPO fuels AI-linked index fund exposure.”
The Guardian asked readers in the US about the SpaceX IPO. More than 150 responded, overwhelmingly to express concern about having their savings tied to major technology firms, citing fears over widening inequality, market instability and the long-term sustainability of the AI boom. Stephen, a 33-year-old engineer from Michigan, described his disgust: “I think it’s abhorrent that my savings and retirement funds are tied so intricately to these tech companies, especially when they cannot be held accountable by investors.”
Those concerns are acute because Musk pushed for a rule change to allow SpaceX shares into index funds earlier than is typical. Many Americans could find their pensions increasingly tied to SpaceX and other AI firms. The company has already moved to capitalise on the AI frenzy, agreeing to buy the startup behind the AI-powered coding app Cursor for $60bn (£44bn). SpaceX is the parent of Musk’s AI business, xAI, which will gain access to Cursor’s more than 1 million users. Harrison Rolfes, an analyst at PitchBook, said the deal would not “close the gap” between xAI’s models and those of rivals Anthropic and OpenAI, but called it a fast path to enterprise AI adoption.
SpaceX shares have risen by about 50% since floating at $135 a share. The float made Musk worth $1.3tn, according to Forbes. Yet the company lost $4.9bn in 2025 on revenues of $18.7bn, while Amazon – which SpaceX overtook in market value – posted $78bn in net income. Matt Reynolds, a 57-year-old professor in eastern Washington, voiced the same worry as many respondents: that the soaring valuations feel untethered from reality. “The amount is absolutely ridiculous,” Stephen said. “It’s a scam.”