Morgan Stanley, Goldman Sachs Lobby Rating Agencies for OpenAI, Anthropic Post-IPO Investment-Grade Status
AM730 · 2 SOURCES1 day ago2 MIN
Summary
Investment banks Morgan Stanley and Goldman Sachs are lobbying credit rating agencies to grant OpenAI and Anthropic investment-grade ratings shortly after their respective IPOs, seeking to reduce borrowing costs for AI infrastructure development . Both companies remain unprofitable and lack stable free cash flow generation, making rating agencies cautious despite anticipated cash windfalls from listing . Anthropic is reportedly on track to file its IPO prospectus next week, with trading potentially commencing in late September or early October .
Key Points
- Morgan Stanley and Goldman Sachs have recently engaged with rating agencies on behalf of OpenAI and Anthropic
- The banks aim to enable the AI firms to access the $11.7 trillion corporate bond market post-IPO
- CreditSights tech sector head Jordan Chalfin said Anthropic raising ~$100 billion could help secure investment-grade status
- Anthropic may submit its IPO prospectus next week, with a roadshow starting end of September
- Anthropic's listing could occur in late September or early October, before the US midterm elections in November
Why It Matters
If successful, the investment-grade push could reshape how high-growth technology companies approach IPOs and debt markets, potentially setting new benchmarks for AI sector financing . Rating agencies face the delicate task of balancing innovative companies' growth potential against traditional financial stability metrics, a challenge that could influence future tech valuations .
If successful, the investment-grade push could reshape how high-growth technology companies approach IPOs and debt markets, potentially setting new benchmarks for AI sector financing . Rating agencies face the delicate task of balancing innovative companies' growth potential against traditional financial stability metrics, a challenge that could influence future tech valuations .