Exclusive | Wall Street urging Anthropic, OpenAI to do their IPOs this year 'before things get crazy' — here's why

Wall Street investors are telling Anthropic and OpenAI to hold their huge IPOs as soon as possible, On The Money has learned. An IPO is when a company sells shares to the public for the first time. Investors are worried about more than just an AI bubble, which could happen if AI companies become worth much more than they should be.

According to people familiar with the situation, big investors are becoming increasingly worried that left-wing Democrats could take control of Congress. They fear that Democratic Socialists in Congress could try to slow down major business deals. These lawmakers could also question technology company leaders about problems caused by AI, including people losing their jobs and fake videos or images known as deepfakes.

One important Wall Street lawyer who works on major business deals said this could lead to years of hearings, investigations, and constant problems. The lawyer said they are advising companies to hold their IPOs before the end of the year, before things become chaotic.

As we have previously reported, Anthropic is expected to release its official IPO paperwork, called an S-1, very soon. The company is preparing to go public before Thanksgiving.

Wall Street is even more worried about OpenAI. Last month, OpenAI CEO Sam Altman said the company was not planning to go public until next year. One reason he gave was concern about AI safety.

Now, powerful people on Wall Street say they will strongly advise OpenAI, the company behind ChatGPT, to hold its IPO before January 3. That is the day Democrats would officially take control of Congress if they win the November elections.

An OpenAI spokesperson said the company has repeatedly explained that it has not chosen a date for its IPO. The spokesperson said Altman made it clear last month that safety comes first and that OpenAI will not go public this year.

Representatives for Anthropic did not immediately comment.

Another major stock sale may also be coming. Meta, the parent company of Facebook, could sell a very large amount of additional stock to raise money for building more AI technology and facilities. On The Money first reported this possibility. The stock sale could happen in the next few months.

Of course, Anthropic might also become nervous and delay its IPO. Some investors are worried that AI company values have already reached their highest point. It is also possible that Republicans could get through next month's elections and keep control of both parts of Congress, the House and the Senate, even though President Trump is unpopular.

If Democrats win both the House and Senate, which polls suggest is quite possible, the government could face what is called legislative gridlock. This means lawmakers would have trouble agreeing on and passing new laws because Trump would still control the White House. Financial markets usually like this situation. The idea is that politicians would spend so much time arguing that they would be unable to make changes that could hurt businesses or investors.

At least, that is the usual idea. But the writer argues that this hopeful view might not be right for November's elections. Many Democrats who could enter Congress are not traditional politicians who try to find ways to make deals with the president's administration.

Instead, the writer describes them as being on the far left of politics. Some openly call themselves socialists and want to completely change the current political and economic system rather than work within it. They are promising to fight Trump's policies more strongly than any previous opposition in the country's history.

Attacks on Trump and his support for expanding AI could become a major issue. Even Republican candidates running for Congress in close elections have changed how they talk about AI. They are no longer simply repeating the Trump administration's message that AI should grow as quickly as possible, whatever the costs.

Many Republican candidates, like their Democratic opponents, are now asking companies to slow down the building of AI facilities and systems. They want companies planning large data centers to provide real benefits to nearby communities. They also want to prevent these centers from using enormous amounts of electricity and reducing local water supplies.

People on Wall Street are privately predicting that Democrats will win control of the House. They also believe Democrats have almost a 70% chance of winning the Senate. In Michigan, the Senate race is very close, with Democratic candidate Abdul El-Sayed holding a small advantage over Republican candidate Mike Rogers.

In Texas, Democrat James Talarico is slightly ahead in the Senate race. His Republican opponent, Ken Paxton, is struggling badly. However, Paxton could still win if he benefits from the popularity and support of Greg Abbott, who is running for another term as Texas governor.

Republicans could still win these races, but it will not be easy. That is why Wall Street is telling the biggest AI companies to act now.