Exclusive | Wall Street urging Anthropic, OpenAI to do their IPOs this year before things get crazy heres why
Wall Street is telling Anthropic and OpenAI that they had better launch their blockbuster IPOs sooner rather than later – and it goes well beyond the risks of an AI bubble, On The Money has learned.The mounting worry among big investors, insiders say, is the threat of a left-wing takeover of Congress, conjuring nightmare scenarios of Democratic Socialists on Capitol Hill looking to throttle deals as they grill tech executives over everything from AI-sparked job losses to deepfakes.“It will be years of hearings, investigations and nonstop turmoil,” one major Wall Street deal lawyer said.“We’re advising that people do their IPOs before the end of the year before things get crazy.”Anthropic, as we have been reporting, will likely release its official offering statement or S-1 any day now in preparation for an IPO before Thanksgiving. The bigger worry is around OpenAI, whose CEO Sam Altman said last month that the company isn’t planning to go public until next year, partly citing concerns about AI safety. Now, Wall Street bigs say the owner of ChatGPT will be urgently advised to do its deal sometime after but before Jan.
3 when the Dems will officially take over if they prevail in the November election.“We’ve been consistent in saying that we have not set a timeline for an IPO,” an OpenAI spokesperson said.“Last month our CEO made clear that the priority is safety, and that we will not going public this year.” Reps for Anthropic had no immediate comment. Also looming is a “monster” secondary stock offering by Meta, the holding company of social-media giant Facebook, to bankroll its AI buildout, as first reported by On The Money.
It could also happen in the coming months.Of course, it could be that even Anthropic gets cold feet and delays its IPO given investor fears we have reached peak AI valuations.It’s likewise possible that the GOP weathers next month and keeps both chambers despite President Trump’s unpopularity.If the Dems do...