Market debut of AI company behind Claude chatbot will be one of largest in US history, a test of its financial viability
Anthropic has publicly filed for a stock market listing, one of the largest debuts in history. The company’s float on the US market is likely to be a high-water mark in the multitrillion-dollar AI boom and a test of its financial viability.
Analysts and investors have valued the San Francisco-based company, founded in 2021, at more than $1.5tn. The company, which will will list under the symbol ANT, confidentially filed with US financial regulators for an initial public offering in June.
The big companies have to IPO to transfer all this investor debt to mutual funds and retirement funds before it goes crash. Can’t be them on the hook for this when it pops.
Luckily S&P is blocking some of these shenanigans by not allowing inclusion into the S&P500 for companies that are not profitable even if they become publicly listed. This includes all of the AI only companies.
Because so many large investment funds have dumped their money in these AI companies they will still take down the entire stock market when they go bust. There is so much money which does not exist inside of the bubble.
Do you have any articles or more information on the S&P blocking them?
article: The S&P 500 won’t bend its rules to let SpaceX in early
“In a Thursday news release, the index provider announced it was holding firm on all three contested criteria — the one-year waiting period before new listings can qualify, the requirement for demonstrated profitability, and minimum public float thresholds — regardless of how large a company may be. ‘Exceptions to the financial viability, seasoning, and IWF requirements should not be granted solely based on market capitalization,’ the company said. The decision preserves existing methodology without alteration.”
I checked vanguard when spacex floated and they had a good explainer. I didn’t dig deep enough to find it on the S&P documentation, but in this article under 3 things to consider, it mentions S&P requires a company to be profitable in its recent quarter or the sum of its previous 4 quarters https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/staying-grounded-moonshot-ipos.html
And if the debt is in the retirement funds, it’s a guarantee that the government will bail it out because they’re holding old people hostage. Yuck.
Let the retirement funds crash. Maybe it’ll finally teach them not to trust crime-riddled, unregulated Wall Street with their futures.
They will get a nice bailout from whatever Democrat or Republican is in charge.
Fed can’t bailout shit with inflation running as hot as it already is (they’re already fudging the numbers to keep Social Security payments down). Dumping the bag onto retirement accounts (mutual funds, ETFs, etc.) is the bailout.
They can’t, but they will anyway!
Just pile it on the backs of the damn lazy youths amiright
Yeah. They haven’t contributed nearly as much as my old ass. What gives them the right?!
Coming out here all like “oh I just want what you had” and “why are things worse” and shit like “social security will be insolvent for me” like a bunch of whining hippies.
Exactly.
We should have let the market crash years ago, so we could begin building something more sustainable in its place.
Instead, it’s what, tripled in size more or less? The fall is only going to be that much harder as a result…