Michael Burry warns OpenAI and Anthropic IPOs could wipe trillions
Michael Burry, the investor known for calling the 2008 crash, is sounding the alarm on the upcoming IPOs of AI giants OpenAI and Anthropic.
He recently posted that these public offerings could wipe out trillions in investment, and says a major market correction might be needed to keep things in check.
Burry warns these IPOs could destroy trillions of dollars of capital.
Anthropic $518B commitments $2T valuation
Both companies are planning massive fundraising: Anthropic's confidential filings show $518 billion in commitments and a goal of topping $2 trillion in valuation, while OpenAI is aiming for its own big debut by 2027.
Burry questions if this level of spending makes sense when future profits are so uncertain, especially since even Anthropic admits its tech comes with serious risks.