JG Nuke on Anthropic IPO and Market Capacity

by Freddenver: Anthropic

The market is expected to absorb multiple IPOs simultaneously, but the math gets shaky when you look at the numbers. JG Nuke states Anthropic will raise $100,000,000,000 via an IPO, which would dwarf the SpaceX IPO that was the largest in history at $85,000,000,000. That SpaceX deal was followed up immediately by $80,000,000,000 in bonds two days after its IPO, setting a precedent for massive capital extraction. The problem is the market is supposed to absorb this IPO by the time when everybody else is issuing it, yet equity sales require buyers from somewhere. Everybody is selling equity into the market and buyers gotta come from somewhere; the money has to come from somewhere. So far they've been able to find the buyers for this stuff, but that's not reasonable to assume that would continue forever. If they can't find the buyers for the stuff then they don't have the capital to burn. Open AI and Anthropic they are the two pillars of ontop of which everything else sits. Continuous capital raising by OpenAI and Anthropic is necessary for the broader ecosystem because offerings are getting bigger as time goes on. If OpenAI and Anthropic cannot raise capital, the industry could collapse and all comes tumbling down.