S&P 500 blocks SpaceX, OpenAI and Anthropic over profitability rule

The S&P 500 announced it will not waive its profitability rule for SpaceX, OpenAI and Anthropic, effectively blocking their entry into the index [Ars Technica].

The rule, adopted earlier this year, requires a company to post positive earnings for the most recent quarter and the full fiscal year, and to meet a minimum market‑capitalization threshold. Companies that fail the earnings test are ineligible, regardless of size or growth prospects [Ars Technica].

SpaceX, with a market value north of $140 billion, has reported net losses in its latest financial statements; OpenAI and Anthropic likewise posted quarterly deficits. Because they do not satisfy the earnings criterion, they cannot be added to the S&P 500 even though their market caps exceed the required level.

Exclusion means the three firms will not be automatically included in the many index funds that track the S&P 500, limiting exposure to passive investors and potentially raising the cost of capital for each company. The decision also signals that the index will not make ad‑hoc exceptions for high‑growth, unprofitable tech firms.

The move may prompt other benchmarks to reassess their own inclusion standards. While some European indexes have begun to relax earnings requirements for fast‑growing companies, the S&P 500’s stance reinforces a stricter focus on profitability as a baseline for index membership.