Anthropic IPO could lead to 'large correction' in markets, Fed official says
Just as the proverbial ink was drying on Anthropic’s updated prospectus for the frontier lab’s expected $1.4 trillion IPO, a Federal Reserve official warned of a “large correction” in stock prices if AI returns fall short of expectations.
Key points
- It’ll still be one of the biggest listings of all time, pegged at $90.4 billion, but any wobbles around the IPO — set to price on Nov.
- Nowhere are expectations loftier than at Anthropic, the first frontier lab to go public.
- Its valuation has already come in below initial expectations.
Citing $800 billion in AI-related debt, plus off-balance-sheet liabilities and the circular financing powering the AI trade, Fed Governor Michelle Bowman said any “shock would likely slow the AI buildout” and “soften” the economy.
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