Anthropic IPO suddenly in doubt. Wall Street is freaking out over OpenAI now.

“I don’t know what anthropic does now because you’re going to the junk bond market that’s already strained.”

Writer of Where’s You Ed At and host of the Better Offline podcast Ed Zitron joins The Tech Report’s Isaac Pound to talk about Anthropic’s IPO as the story breaks that Blackstone does not expect the maker of Claude to reach investment grade debt.

OpenAI is growing faster than almost any technology company in history. It’s also burning through cash at an extraordinary rate.

In 2025, OpenAI generated more than $13 Billion in revenue, but its operating costs reached roughly $34 Billion. At the same time, it committed hundreds of billions more to chips, data centers, cloud infrastructure, and future computing capacity. So who ultimately pays for it?
The answer may go far beyond ChatGPT subscriptions. OpenAI’s expansion is increasingly tied to Nvidia, Microsoft, Oracle, power grids, private investors, and eventually public markets. That means the cost of the AI race can show up through higher electricity bills, retirement portfolios, corporate losses, and potentially government incentives.

OpenAI may still become one of the most valuable companies ever built, but if the economics don’t work, someone will be left holding the bill.

OpenAI reportedly cuts fundraising target from $30 billion to $20 billion
https://www.investors.com/news/technology/openai-cuts-funding-target-amid-meta-microsoft-offerings-anthropic-ipo/
OpenAI reportedly lowered its target valuation from $1.4 trillion to $1.25 trillion and secured only about $11 billion in commitments so far. That’s a serious change in the fundraising picture for a company racing to finance enormous computing commitments.

Anthropic files IPO paperwork, revealing an $80.7 billion first-half net loss
https://www.investing.com/news/stock-market-news/anthropic-opens-books-on-ais-explosive-growth-and-staggering-costs-4972801
Anthropic’s filing revealed $16.3 billion in first-half revenue but an $80.7 billion net loss. Much of that loss came from a non-operating accounting item tied to convertible bonds, so it should not be confused with an $80.7 billion cash operating loss. Still, the filing exposes the enormous financial risks investors must price into the IPO.