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Blackstone Group has told investors that Anthropic is more likely to receive a speculative-grade rating in the BB range after going public, rather than the investment-grade rating previously expected. According to a report by the Financial Times, this reversal emerged in Anthropic's $63 billion chip financing deal; a speculative-grade rating would restrict investment by institutions such as insurance companies and pension funds. The prospectus shows that Anthropic plans to invest more than $800 billion in computing infrastructure by 2045, and currently holds more than $112 billion in cash and cash equivalents. Other reports say that if it goes public smoothly next month, Anthropic is expected to set a record for the largest IPO in history, and may still need to rely on higher-rated suppliers such as Broadcom to support debt financing.
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Nov 1
Phoenix Technology
OpenAI's funding target shrinks from $30 billion; Anthropic reportedly unlikely to obtain investment-grade rating after IPO
According to The Wall Street Journal, in OpenAI's new funding round, which originally targeted $30 billion, investors were willing to provide only $11 billion, cutting the funding target by one-third; Sam Altman said he will continue reaching out to family offices and high-net-worth individuals in the coming weeks. Blackstone, a major investor in fellow AI company Anthropic, changed its tune and said that Anthropic will likely be unable to obtain an investment-grade rating after going public, which would affect its arrangements to borrow at low cost for its plan to build more than $800 billion in computing infrastructure by 2045. On the day the news emerged, the Nasdaq 100 index closed down 3.5%, bringing its cumulative decline for the entire month of October to about 5.3%.
Sina Tech
OpenAI's funding target shrinks, Anthropic reportedly faces rating setback, Nasdaq falls 3.46% in a single day
According to The Wall Street Journal, OpenAI's new funding round target has been lowered from $30 billion, with investors willing to provide only $11 billion, cutting the funding target by about one-third. Separately, according to the Financial Times, Anthropic's major investor Blackstone changed its tune, saying the company may not obtain an investment-grade rating after going public; on the day of the news, the Nasdaq 100 index closed down 3.5%, and the Nasdaq fell about 5.3% cumulatively over the entire month of October. The article also mentions that Amazon's trailing 12-month free cash flow was -$42.4 billion, and compares this round of adjustment to the internet bubble 26 years ago.
Phoenix Technology
Blackstone expects Anthropic to struggle to obtain an investment-grade rating after going public, potentially falling into the BB junk-grade category
Blackstone told investors that Anthropic may not immediately obtain an investment-grade rating after going public, and that major rating agencies are more likely to assign a high-end junk rating in the BB range. If the rating falls into junk territory, Anthropic's prospects for financing its more than $800 billion computing power plan will become more complicated, because funding pools such as insurance companies and pension funds will narrow significantly and interest rates will be higher. In the $63 billion financing codenamed "North Star," more than $42 billion of senior loans are guaranteed by Broadcom, while $18 billion of subordinated debt is backed by Anthropic's lease payments; KBRA assigned a BB+ rating and Morningstar DBRS assigned a BB rating.
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Blackstone Changes Its Tune, Says Anthropic May Struggle to Obtain an Investment-Grade Credit Rating After Going Public
According to a report by the UK's Financial Times, Blackstone Group told investors that Anthropic is more likely to receive a speculative-grade rating in the BB range after going public, rather than the investment-grade rating previously expected. If it goes public successfully next month, Anthropic is expected to set a record for the largest IPO in history, and its prospectus discloses that it plans to invest more than $800 billion in computing infrastructure by 2045. If the rating falls into speculative grade, it will restrict investment by institutions such as insurance companies and pension funds, and Anthropic may still need to rely on higher-rated suppliers such as Broadcom to support debt financing.
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Oct 31
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Phoenix Technology
Blackstone Reverses Stance, Says Anthropic May Struggle to Obtain Investment-Grade Credit Rating After IPO
According to a report by the UK's Financial Times, Blackstone Group has told investors that Anthropic is more likely to receive a speculative-grade rating in the BB range after its IPO, rather than the investment-grade rating previously expected. This reversal emerged in Anthropic's $63 billion chip financing deal; a speculative-grade rating would restrict investment by institutions such as insurance companies and pension funds. The prospectus shows that Anthropic plans to invest more than $800 billion in computing infrastructure by 2045, and currently holds more than $112 billion in cash and cash equivalents.
East Money
Blackstone Expects Anthropic Unlikely to Obtain Investment-Grade Rating After Listing
Blackstone Group has told investors participating in Anthropic's $63 billion chip financing deal that it expects Anthropic to receive a credit rating in the higher tiers of junk grade after its IPO, contrary to its earlier statement that it expected an investment-grade rating by the end of the year. Anthropic filed for listing on Monday and plans to go public next month; its prospectus proposes spending more than $800 billion on computing infrastructure by 2045. The company currently holds more than $112 billion in cash and cash equivalents, and investors expect the IPO could raise about another $100 billion.
Yicai
AI stocks sold off again: Intel plunges 28.59%, Nvidia falls 4.22%, Nasdaq drops 2.86%
On October 30, US AI concept stocks were sold off again, with the Nasdaq falling 2.86%, its worst single-day performance since June, and the Philadelphia Semiconductor Index dropping 7.20%. Intel plunged 28.59% on weak guidance, Nvidia fell 4.22%, AMD dropped 10.88%, and CoreWeave's bond yields climbed while its stock fell 37% cumulatively in October. Capital shifted toward defensive sectors such as consumer staples and healthcare, with Walmart rising 1.86%.
TechCrunch AI
Report: Anthropic Expected to Receive High-Yield Junk Credit Rating After IPO
According to a Financial Times report, Blackstone told investors participating in the $63 billion Anthropic chip financing deal that it expects Anthropic to receive a "high" junk credit rating after its IPO, specifically in the BB range. Blackstone had previously said Anthropic would obtain an investment-grade rating by 2027. Anthropic formally submitted its listing application this week; TechCrunch contacted Anthropic and Blackstone about this, and both declined to comment.
Sina Tech
Blackstone: Anthropic May Not Immediately Obtain an Investment-Grade Rating After Going Public
Blackstone Group told investors participating in Anthropic's latest chip financing deal that it expects Anthropic to receive a "higher" tier junk rating from major credit rating agencies after going public, with the rating more likely to fall at BB or above. Blackstone had previously expected Anthropic to obtain an investment-grade rating before the end of the year.
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