Texas Sues Meta Over Encryption While IPO Fever Prices SpaceX at $2–2.5 Trillion
Texas Attorney General filed suit against Meta Platforms and WhatsApp alleging deceptive encryption claims, seeking injunctions against message access and monetary penalties. Retail prediction markets are pricing a potential SpaceX IPO valuation between $2 trillion and $2.5 trillion—levels that rival Meta Platforms’ roughly $1.5 trillion market capitalization.
1. Texas sues Meta over encryption claims
On Thursday Texas Attorney General Ken Paxton filed suit against Meta Platforms and its messaging service WhatsApp, alleging the company misled users by marketing end-to-end encryption while retaining access to private communications. The complaint seeks a court order prohibiting Meta from accessing Texans’ messages without consent and demands monetary penalties for deceptive practices.
2. Retail traders price tech IPO rivals
Prediction markets and retail investors are assigning high odds to blockbuster IPO valuations for SpaceX, OpenAI and Anthropic that could rival or exceed Meta Platforms’ roughly $1.5 trillion market capitalization. Funds offering indirect exposure, such as DXYZ and VCX, jumped 27% and 18% respectively as traders placed 37% odds on a SpaceX debut between $2 trillion and $2.5 trillion and 92% odds on an OpenAI offering this year.