Anthropic is considering an IPO, According to the Financial TimesIt comes after a series of warnings from senior central bankers and others about an artificial intelligence bubble and excess liquidity in a range of asset markets.
Meanwhile, NEC director Kevin Hassett emerged as President Donald Trump’s favorite to succeed Federal Reserve Chairman Jerome Powell next year, signaling further interest rate cuts in 2026 and a new wave of cheaper money entering the market.
and big short Investor Michael Burry reiterated his warning that the stock market is in a bubble on author Michael Lewis’s podcast.
The British “Financial Times” said that Anthropic is negotiating for a new round of venture capital, which will value the artificial intelligence company at US$300 billion. The company has hired California law firm Wilson Sonsini to advise on its IPO and is eyeing a 2026 listing. The company denies having any such plans in place.
Going public would give the company a massive new cash pile to compete with Sam Altman’s OpenAI. According to publicly available research, OpenAI’s business has some weaknesses Deutsche Bank Analysts Adrian Cox and Stefan Abrudan. OpenAI ChatGPT’s consumer subscription growth is slowing, according to transaction data from dbDataInsights.
“OpenAI subscription values in key European markets fell slightly in June and have been little changed since…Unlike the past two years, growth has not accelerated following the annual summer slowdown, suggesting the subscription model may have become saturated,” they said.
Meanwhile, Anthropic and Perplexity have seen significant growth in subscription value, despite both large language models having smaller customer numbers, Deutsche Bank data shows.
“New data also shows that OpenAI’s subscription value has grown 18% this year, compared with nearly 7x growth for Anthropic’s Claude and much smaller growth for Perplexity, up 46%,” the pair wrote.
Deutsche Bank said Anthropic has an easier path to profitability than OpenAI:
If Anthropic goes public, it will be in an environment fraught with concerns about bubble-type activity. bank of england Tuesday warning “Valuations in many risk assets remain severely tight, particularly for technology companies focused on artificial intelligence (AI). Equity valuations in the US are near their highest levels since the dot-com bubble and in the UK near their highest levels since the global financial crisis (GFC). This increases the risk of a sharp correction.”
For this reason, UK pension funds have been quietly shifting their investments away from US tech stocks, British “Financial Times” report.
Earlier, former Reserve Bank of India Governor Raghuram Rajan spoke at the Clifford Capital Investor Day in Singapore. “We are in a period of abundant credit and the Fed is cutting credit,” Bloomberg quoted him as saying. “That’s when the risk increases. So now is the time to be more careful.” Rajan is now a finance professor at the University of Chicago.
Pablo Hernández de Cos, General Manager of the Bank for International Settlements warning in speech Providing excessive liquidity to non-bank financial institutions for leveraged trading of government debt. While he didn’t tie it to the stock market, it dovetails with the theme of asset markets being flooded with too much cheap cash.
“In recent years, hedge funds have been able to borrow amounts equal to or above the market value of the collateral provided, that is, without any haircuts or haircuts, thereby protecting cash lenders from market risk,” he said. “About 70% of hedge funds’ dollar bilateral repos (short-term borrowing instruments based on repurchase agreements) and 50% of their euro bilateral repos are at zero discount, meaning creditors do not impose any restrictions on the use of leverage with government bonds.”
Investor Burry who correctly predicted the 2008 financial crisis emerges On Michael Lewis’ Podcast,author big shortdescribing his reasons for closing his investment fund. He believed technology stocks were in a bubble and wanted to short the market, but his clients wanted to go long stocks. “I think we’re in a bad situation with the stock market. I think the stock market could go on for many years. And I think it could be a longer bear market more similar to 2000,” Burry said. “This bubble looks a lot like the dot-com bubble.”
Trump said in Washington that he had chosen a successor to Fed Chairman Jerome Powell. The market is interpreting this as the Federal Reserve may continue to cut interest rates, thereby adding more liquidity to a market that is already close to historical highs. The CME FedWatch tool, which shows bets on federal funds futures, shows a 90% chance of a 0.25% rate cut in December and a 40% chance of a March 2026 rate cut.
Here’s a snapshot of the market ahead of the opening bell in New York this morning:
- S&P 500 Index Futures It was up 0.12% this morning. It closed up 0.25% on the previous trading day.
- Stoxx Europe 600 Index It rose 0.14% in early trading.
- British FTSE 100 It fell 0.19% in early trading.
- Japanese Nikkei 225 Index up 1.14%.
- Chinese CSI 300 down 0.51%.
- South Korea Korea Composite Index up 1.04%.
- Indian nifty 50 down 0.18%.
- Bitcoin rose to $92,800.