AI model company Anthropic announced on local time June 1 that it has filed a confidential initial public offering (IPO) application with the U.S. Securities and Exchange Commission (SEC), planning to pursue a public listing. The company is expected to become one of three technology giants valued at approximately $1 trillion to list on U.S. stock exchanges this year, alongside SpaceX and OpenAI. SpaceX filed its listing application in April, while OpenAI is expected to follow in the near term. This wave of AI company IPOs occurs as S&P Dow Jones Indices stated in May it is considering accelerated inclusion of AI firms in indices such as the S&P 500, which are tracked by U.S. retirement account funds including 401(k) plans.
Anthropic Files Confidential IPO Application with SEC
Anthropic submitted its confidential IPO application to the SEC on local time June 1. The company is one of three technology firms with valuations approaching $1 trillion expected to go public on U.S. exchanges this year. SpaceX filed its listing application in April. OpenAI is expected to file in the near term.
S&P Dow Jones Indices Considers AI Company Inclusion in Retirement Account Indices
According to The Washington Post, S&P Dow Jones Indices stated in May that it is considering accelerating the inclusion of AI companies in indices such as the S&P 500. These indices are typically tracked by U.S. 401(k) retirement account funds. This means that even if ordinary investors do not actively purchase shares of these companies, they may hold stakes through their retirement accounts. AI companies would no longer be investment targets solely for venture capital funds and Silicon Valley wealthy individuals, but would become part of mass retirement assets. Because these are index funds, retirement account holders do not need to monitor daily trading or evaluate individual company indices — by holding index funds in retirement accounts long-term, they may obtain a portion of industry growth returns.
SpaceX Discloses $13 Billion Cumulative Losses Since Early 2023
Analysts suggest that leading AI companies are racing to go public primarily because developing advanced AI requires massive capital investment. SpaceX disclosed that it has accumulated losses of $13 billion since early 2023, with the primary source of losses being its AI business SpaceXAI.
Analysts Warn of Market Risks from Large-Scale AI IPOs
According to The Economist, the chief strategist at Interactive Brokers, one of the world's largest online trading platforms and brokerages, warned that these AI company listings pose "existential risk." A concerning issue is that stock index compilers may grant rapid inclusion into benchmark indices for the trio of technology giants. This would prompt funds tracking indices and managing trillions of dollars in assets to begin purchasing these stocks within days of the new share issuance. Although IPOs of this scale are unprecedented, the exceptionally large U.S. stock market will absorb them. In the coming years, some "indigestion" is expected to occur.
A larger concern is that these massive IPOs may signal more capital raising, including from newly listed companies and existing peers. U.S. investment firm Elm Wealth stated that capital has been abundant for years while stock supply has decreased. Technology giants generate large amounts of cash and therefore continuously buy back shares, while white-collar workers invest retirement savings into the stock market, thereby driving up stock prices.
FAQ
What did Anthropic announce on local time June 1?
Anthropic announced on local time June 1 that it has filed a confidential initial public offering (IPO) application with the U.S. Securities and Exchange Commission (SEC), planning to pursue a public listing.
How could AI company IPOs affect U.S. retirement accounts?
According to The Washington Post, S&P Dow Jones Indices stated in May that it is considering accelerating the inclusion of AI companies in indices such as the S&P 500, which are tracked by U.S. 401(k) retirement account funds. This means ordinary investors may hold stakes in these AI companies through their retirement accounts even without actively purchasing shares.
What financial losses did SpaceX disclose?
SpaceX disclosed that it has accumulated losses of $13 billion since early 2023, with the primary source of losses being its AI business SpaceXAI.
