The prospect of blockbuster stock market listings by AI leaders OpenAI and Anthropic has generated enormous excitement on Wall Street. Yet despite their soaring private valuations, both companies could face a difficult reception from public market investors.

While private investors have been willing to assign valuations approaching $1 trillion to the two AI developers, public shareholders are expected to demand clearer evidence that these businesses can eventually generate sustainable profits.

One of the biggest concerns is the enormous cost of developing frontier AI models. Training and operating advanced artificial intelligence systems requires billions of dollars in spending on chips, data centers, cloud infrastructure and electricity. As competition intensifies, both companies are expected to continue investing heavily simply to maintain their technological lead.

At the same time, the AI market is becoming increasingly competitive. Technology giants such as Microsoft, Google and Meta are developing their own AI models while also competing for enterprise customers. Lower-cost AI models from Chinese developers are adding further pressure, raising questions about whether premium pricing for frontier models can be sustained.

Another challenge is profitability. Although demand for generative AI continues to grow rapidly, much of the industry’s revenue is still concentrated in cloud infrastructure and AI hosting services rather than foundation models themselves. Investors may therefore question whether OpenAI and Anthropic can generate returns that justify their extraordinary valuations.

Market conditions could also complicate any public offering. Recent volatility in technology stocks and concerns about elevated valuations have made investors more selective about high-growth companies. Analysts warn that public markets often apply stricter financial discipline than private investors, particularly for businesses that continue to burn significant amounts of cash.

Anthropic may face additional scrutiny due to regulatory and legal challenges surrounding advanced AI systems, while OpenAI must convince investors that its rapid revenue growth can eventually translate into consistent profitability. Both companies are also navigating increasing government oversight as policymakers examine the risks associated with powerful AI technologies.

Despite these hurdles, investor interest in artificial intelligence remains exceptionally strong. Successful IPOs by either company would provide fresh capital for continued expansion and establish new benchmarks for valuing AI businesses in public markets.

Ultimately, the success of any listing will depend less on the excitement surrounding artificial intelligence and more on whether OpenAI and Anthropic can demonstrate that they possess durable business models capable of delivering long-term returns alongside technological leadership.

Reference: Financial Times, “Why OpenAI and Anthropic may struggle to float” (2026). Financial Times article