News & Updates
The latest news and updates from companies in the WLTH portfolio.
Why OpenAI Lowered Its Price Tag Weeks Before Anthropic Goes Public
Some investors would rather see Anthropic's IPO price before backing OpenAI. OpenAI has lowered the valuation target for its latest funding round to $1.25 trillion, the Financial Times reported. That sits below the $1.4 trillion price investors heard earlier this month. The new figure would still lift OpenAI almost 50% above its $852 billion valuation from March. Investors have until October 30 to commit. Why Did OpenAI's $1.4 Trillion Pitch Land With a Thud? Morgan Stanley and tech fund Dragoneer took the round to the bank's private wealth clients. They pitched a $1.4 trillion pre-money valuation, documents seen by the FT show. Several people close to the process said demand fell short of earlier OpenAI rounds. "There has been zero clamouring. All the prior times [OpenAI] have been on there's been a frenzy. This time is a bit of a thud," a person with knowledge of the deal said. Some of those people said investors also felt "indigestion" after backing earlier rounds. OpenAI raised $40 billion in March 2025 and a record $122 billion this March. Coatue and UAE funds are in talks to lead the new round, one person told the FT. CNBC, which reported the $1.25 trillion figure on Thursday, described it as pre-money. That puts the new target about $150 billion below the earlier pitch. Follow us on X to get the latest news as it happens Why Some Investors Are Waiting on Anthropic First Notably, other investors gave the FT a different reason for holding back. They would rather see how Anthropic prices its IPO, expected in mid-November, before committing to OpenAI. Anthropic's own price tag has already come down. Some investors discussed a valuation of $1.5 trillion for the listing, below the $2 trillion it once sought, after third-quarter growth slowed. On those reported figures, the gap between the 2 labs has widened to about $250 billion. Earlier this week, it stood near $100 billion. OpenAI wants the $30 billion as a "bridge" to its own listing, likely in the first half of 2027. CEO Sam Altman ruled out a 2026 IPO last month, citing safety. Why the Wider Stock Market Is Watching Both Labs The lower target comes as US tech stocks have sold off over worries about debt-funded AI spending. Chip stocks shed $2 trillion in 8 sessions this month. Jimmy Chang of the Rockefeller Global Family Office said uncertainty around both IPOs is weighing on US stocks. His office holds exposure to both labs. "The market needs to see a successful IPO. These companies need funding," Chang added. OpenAI may raise less than $30 billion, depending on investor interest. The October 30 deadline will show how much demand sits at $1.25 trillion before Anthropic sets a public price.
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Bank Earnings Hinge on Anthropic IPO as SpaceX Windfall Fades
Can the expected Anthropic IPO keep the deal machine running? Major US banks report third-quarter earnings this week after a SpaceX-fueled first half. Bloomberg Intelligence analyst Herman Chan says Anthropic's expected initial public offering (IPO) should help big banks in the fourth quarter. However, Chan says IPO delays and an AI-led rally leave markets more fragile than record index highs suggest. What Did SpaceX Do for Bank Revenue? Chan describes a strong first half and a murkier second in a Bloomberg interview. Goldman Sachs, JPMorgan, Citigroup and Wells Fargo are among the banks reporting. Morgan Stanley, a lead underwriter on the SpaceX listing, shows the scale. The bank reported $851 million in second-quarter equity underwriting revenue, up from $500 million a year earlier. That business earns fees for helping companies sell shares. Its wealth unit also gathered a record $148 billion in net new assets, meaning client money added. Chief Financial Officer Sharon Yeshaya said more than half came from IPO-related flows. Chan expects wealth management to stay a strong point as net new money keeps arriving. In contrast, investment banking and trading may prove choppier. Meanwhile, London Stock Exchange Group (LSEG) data shows global investment banking fees fell 19% from the second quarter. Fees remain up 12% for the first nine months of the year. Who Fills the Gap If Anthropic Slips? Chan expects Anthropic's listing in the fourth quarter to lift Goldman Sachs and Morgan Stanley. Bloomberg reported in June that both banks won lead roles, with JPMorgan also on board. However, the Nasdaq 100 fell more than 300 points last Thursday after a report of lower OpenAI revenue. The gap traces to how OpenAI and Anthropic count cloud-partner sales, the Financial Times reported. Banks also structure bonds and securitizations, packages of debt sold to investors, that fund data center buildouts, Chan says. Therefore, slower AI spending could cut that fee revenue. Chan links recent cooling in Goldman Sachs and Morgan Stanley shares to those questions. Credit quality remains pristine, so investors will listen for early signs of slippage. Morgan Stanley and Goldman Sachs lead the Anthropic offering, so one delay could dent fee income for both.
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3 Stocks Already Winning the OpenAI vs. Anthropic Race
Skeptics warn the AI building boom could overshoot before either lab lists. OpenAI and Anthropic reported more than $80 billion in combined losses last year. Meanwhile, three companies supplying power and cooling to their AI data centers are seeing a business boom. Unlike the AI giants, all three already trade on the New York Stock Exchange (NYSE). Three NYSE Stocks Are Getting Paid by the AI Boom GE Vernova (GEV) supplies the turbines and equipment that power AI data centers. Its data center orders exceeded $5 billion in the first half of 2026, more than double its entire 2025 total. Quanta Services (PWR) builds the power lines connecting those facilities to the grid. Its total backlog reached a record $53.4 billion, including work beyond AI. Vertiv (VRT) sells the systems that prevent servers from overheating. Its quarterly sales jumped 24%, prompting higher annual forecasts. Several Wall Street analysts argue that these suppliers benefit regardless of which AI developer wins more customers. But What Happens If the AI Bubble Bursts? OpenAI recorded a $38.5 billion loss in 2025. Anthropic reported nearly $42 billion in losses, though $34 billion came from a non-cash accounting charge. Anthropic has also committed $518 billion to future computing and infrastructure spending. Michael Burry, famous for predicting the 2008 financial crisis, wants the market to crash before the AI giants go public. "For the benefit of humanity, the markets should tank hard and prevent the OpenAI and Anthropic IPOs." Former BitMEX CEO Arthur Hayes shares those concerns. "There always is a crash, and there always is a bailout." Thursday offered a warning. OpenAI's annualized revenue is reportedly $20 billion below an earlier estimate, largely because of differences in counting cloud-partner sales. The Nasdaq 100 fell more than 300 points within half an hour amid wider market pressure. For GE Vernova, Quanta and Vertiv, the orders are real. The question is how long AI companies can afford to keep building at this pace.
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