Anthropic rushing IPO before AI bubble bursts

Wall Street advisers are reportedly urging Anthropic and OpenAI to pursue public offerings quickly, not only because investors fear AI valuations may have peaked, but also because the November congressional elections could bring political scrutiny of the industry. Anthropic may file its IPO registration statement soon and is expected to aim for a listing before Thanksgiving. OpenAI CEO Sam Altman has said the company does not plan to go public this year, citing safety as a priority, though investors are said to want it to act before January 3 if Democrats win control of Congress.

The concern is that a Democratic-led Congress could hold hearings and investigations into AI’s effects, including job losses and deepfakes, and challenge the administration’s push for rapid AI expansion. Opposition to large data-center projects is also growing over their electricity and water demands, with some politicians calling for companies to provide tangible community benefits. Although divided government is often seen as market-friendly because it can limit new legislation, investors cited in the account fear that a more confrontational, left-leaning group of lawmakers could produce prolonged turmoil. The piece also notes that Meta may raise substantial funds through a secondary stock offering to finance its AI investment, while acknowledging that Anthropic could delay its IPO if market enthusiasm fades and that Republicans could retain Congress.