antropic CNBC’s Jim Cramer said Monday that upcoming initial public offerings could be an important test of investor confidence in the artificial intelligence industry.
“Without that, I don’t see how AI stocks can make a real recovery,” the “Mad Money” host said just two weeks after Claude Developer filed S-1 IPO documents. Despite the recent decline in AI stocks, Anthropic is reportedly moving forward with its IPO plans. The Wall Street Journal reported, citing people familiar with the matter, that the company plans to meet with key investors this week and aims to make its trading debut as early as next Thursday or Friday. “I think it’s safe to say this has the potential to be one of the most important IPOs in history.”
Cramer explained that the billions of dollars spent on AI chips and data centers ultimately depend on a small number of AI developers, including Anthropic, generating enough revenue to justify those investments.
“Anthropic is important because it is one of the few companies that is at the end of the food chain for all the AI data center investments that we’ve seen, and one of the few that ultimately needs to profit from all this investment spending,” Kramer said. “If you can’t do that, or if you can’t convince enough investors to do so, it’s hard to justify all the AI investments that are being made right now.”
Kramer pointed out that space x This is an example of how interconnected AI trade is. Much of Elon Musk’s rocket and AI company’s recent revenue growth has come from renting computing power to customers, including: of the alphabet Google and anthropology. According to its IPO prospectus, Google is paying about $900 million per month for its capacity, while Anthropic’s commitment has increased from an initial $1.25 billion per month to more than $3 billion.
These agreements allow SpaceX to Nvidia Chips. “But what if the deal with humanity fails?” Kramer said. “Anthropic would then have no funds to fulfill the contract and would have to withdraw quotes from both SpaceX and Nvidia, as well as numerous other computing providers and their suppliers to Anthropic,” not to mention Alphabet. AmazonNvidia have both invested in Anthropic, and their returns are sensitive to changes in the AI developer’s valuation.
The problem here is that investor appetite for Anthropic’s IPO appears to be waning. Anthropic’s potential valuation has reportedly fallen to as much as $1 trillion from as much as $2 trillion earlier this fall, following a sell-off in technology stocks last week on concerns that a Democratic wave in the midterm elections would mean delays in new data center construction.
On Friday, at the CNBC Investment Club’s annual meeting, Kramer also emphasized the importance of Anthropic’s offerings to the AI industry and the club’s portfolio names Alphabet, Amazon, and Nvidia.
