Anthropic IPO could lead to 'large correction' in markets, Fed official says
Fed Governor Michelle Bowman said a failure to meet lofty expectations “would likely slow the AI buildout” and “soften” the economy.
Federal Reserve Governor Michelle Bowman warned of a "large correction" in stock prices if AI returns fall short of expectations following Anthropic's upcoming IPO. With $800 billion in AI-related debt and off-balance-sheet liabilities, any "shock" could slow the AI buildout and soften the economy. Anthropic, the first frontier lab to go public, has already had its valuation come in below initial expectations.
While the IPO is expected to be one of the biggest listings of all time at $90.4 billion, Tore Opsahl, head of quantitative solutions advisory group at Nomura, said that any wobbles around the IPO "might mean a selloff of the AI theme around the IPO."
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