Here's the cash windfall the Anthropic IPO may bring to banks like Goldman Sachs, JP Morgan and Morgan Stanley

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1. 1h ago

   Anthropic IPO Promises Major Fee Windfall for Wall Street Banks

   Wall Street financial institutions are positioned to collect substantial fee revenue from the upcoming public offering of artificial intelligence company Anthropic. According to Evercore ISI analyst Glenn Schorr, the public share offering could generate an equity capital markets fee pool of about $562 million for participating underwriters. This prospective financial windfall would match approximately 1% of the combined fourth-quarter earnings per share anticipated by analysts for the institutions tracked by the firm. Major Wall Street institutions including Goldman Sachs, JP Morgan, and Morgan Stanley stand to benefit from these transaction fees and share allocations as the offering moves forward.

   Why it matters

   The impending public listing highlights the deep financial ties developing between Silicon Valley technology enterprises and major Wall Street underwriters. Intense competition has already emerged among top financial institutions, with firms like Goldman Sachs and Morgan Stanley vying for primary underwriting positions on the deal. Meanwhile, the public filing has sparked intense scrutiny over corporate disclosures, revealing extensive risk disclosures and highlighting broader market questions regarding artificial intelligence funding models.

   What is confirmed

   • Anthropic filed its S-1 document for a public offering.
   • Goldman Sachs, JP Morgan, and Morgan Stanley are among the major banks positioned to capture cash windfalls from the IPO.
   • Evercore ISI analyst Glenn Schorr estimates the offering could generate an equity capital markets fee pool of about $562 million for selling banks.
   • The $562 million fee pool would equal about 1% of the combined fourth-quarter earnings per share expected by analysts for the banks followed by Schorr.
   • Goldman Sachs and Morgan Stanley are competing for the top bank position on the deal.

   Still unconfirmed

   • Jim Cramer stated that the Anthropic IPO filing makes Goldman Sachs a buy.

   What to watch next

   • Final underwriting assignments and bank syndicate selections for the IPO
   • Further market disclosures regarding the timing and pricing of the Anthropic share offering
   Sources used for this update (17)

   1. SEC.gov — Anthropic, PBC - S-1 (Q2)
   2. CNBC — From Wall Street to Silicon Valley, Anthropic IPO poised to have massive 'trickle-down effect'
   3. The Washington Post — The risk that AI wakes up and other warnings in Anthropic’s unusual IPO filing
   4. WSJ — Anthropic’s ‘Adjusted’ Profit Exposes Wall Street’s Earnings Game
   5. Yahoo Finance — Here's the cash windfall the Anthropic IPO may bring to banks like Goldman Sachs, JP Morgan and Morgan Stanley
   6. The Economist — Don’t expect supersize profits from Anthropic soon
   7. CNN — Anthropic’s nearly 100-page list of business risks includes everything from bioweapons to AI blackmail | CNN Business
   8. CNBC — Anthropic's IPO is risky business
   9. Reuters — Who controls powerful AI? Anthropic has a plan for long after its leaders depart
   10. The New York Times — In Anthropic I.P.O., Goldman and Morgan Stanley Slug It Out for Top Bank
   11. Axios — Anthropic renews a certain kind of AI investors' faith
   12. The New York Times — Who Stands to Gain From an Anthropic I.P.O.
   confidence 95%