Jeremy Grantham Slams SpaceX as AI Bubble, Puts Crash Odds at 90%

The controversy over SpaceX’s lofty valuation following its listing has become a new focus in the debate over whether the AI investment boom has grown excessive. Legendary Wall Street investor Jeremy Grantham believes the company’s use of AI in its growth narrative may lead investors to underestimate the risk of a valuation correction. Institutions including Morgan Stanley and Goldman Sachs, however, remain broadly optimistic.

Grantham recently called SpaceX “the craziest bubble in human history” and criticized its prospectus for claiming an AI-related total addressable market of as much as $28.5 trillion, describing the estimate as a product of market mania. He predicted a 90% chance that the company would crash and said the prospectus would look like a joke when viewed 50 years from now.