CONNECT WITH US
Tech

Tech

Anthropic’s IPO is selling investors a story. The numbers tell another one

Fast Company logo

Published on

Add as a preferred source on Google
Anthropic’s IPO is selling investors a story. The numbers tell another one

Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI. I’m Mark Sullivan, a senior writer at Fast Company, covering emerging tech, AI, and tech policy.

Anthropic officially filed its IPO papers earlier this week, hoping to raise up to $100 billion, and as much as 20% of the shares may be reserved for retail investors (aka regular folks). On Tuesday, Meta said it would sell equity shares on the public market to raise $95 billion to finance its AI infrastructure build-out. Retail investors have long been exposed to the AI business through shares in tech behemoths like Google and Microsoft, but they’re now getting the chance to place bets on pure-play AI labs like Anthropic and OpenAI.

Do they know what they’re getting into? I have my doubts. Does anyone really know what we’re getting into? Retail investors make investing decisions differently from institutional investors (such as pension funds or hedge funds). While institutional investors dig into the financials of prospective investments, retail investors often base their decisions on the narrative a company lays out as it goes public.

“Retail investors buy the story, not the model,” PitchBook senior late-stage research analyst Harrison Rolfes tells Fast Company .



Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.