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Don't Fear Higher Rates: Play AI ETFs as IPO Race Heats Up
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Key Takeaways
Anthropic and OpenAI are racing toward public markets, while Perplexity targets a 2028 IPO.
SpaceX's successful IPO has boosted optimism for upcoming AI listings.
Strong AI growth and investor enthusiasm may help AI-focused ETFs weather rate-hike fears.
Mega IPOs are currently setting the tone of Wall Street. SpaceX (SPCX - Free Report) made a blockbuster debut last week, and the coming months are likely to witness a wave of high-profile artificial intelligence (AI) IPOs. SpaceX's landmark offering could serve as a key indicator of market appetite for large-scale AI and technology listings.
Agreed, rates are expected to remain higher for longer as hot inflation readings could fuel debate about the odds of an interest rate hike this year. And a high-rate environment is a negative for tech stocks.
But Anthropic, OpenAI and Perplexity represent three of the most valuable private AI companies in the world, each pursuing a different path to the public markets. Anthropic currently leads the IPO race, OpenAI is close behind and Perplexity remains focused on a 2028 debut.
If these listings are well received — the odds appear favorable — they may create solid opportunities for ETF investors seeking exposure to the sector. The IPO euphoria could even bypass the Fed rate hike fears and a likely tech slump. Let’s delve a little deeper.
Anthropic Eyes a Massive IPO
AI startup Anthropic, best known for its Claude chatbot and AI coding platform Claude Code, has recently confidentially submitted draft registration documents to the U.S. Securities and Exchange Commission (SEC) for a proposed IPO.
Anthropic's IPO filing follows a recent $65 billion funding round, which valued the company at $965 billion, surpassing OpenAI's $852 billion valuation recorded in March. The company is reportedly considering an offering that could raise more than $60 billion.
Anthropic’s Enterprise Demand Drives Growth
Anthropic derives roughly 80% of its revenues from enterprise customers. A major contributor to that growth has been Claude Code, the company's AI-powered coding assistant that automates portions of the software development process.
Annualized revenues from Claude Code have climbed to $2.5 billion, while business subscriptions have quadrupled since the beginning of the year. Anthropic's overall annualized revenue run rate surpassed $47 billion in early May, up sharply from $30 billion in April and approximately $9 billion a year earlier (read: ETFs in Focus as Anthropic Eyes a Blockbuster IPO).
OpenAI Joins the IPO Wave
Just a week after Anthropic's filing, OpenAI confidentially submitted its own IPO paperwork to regulators. The company has reportedly been preparing for a public debut as early as the fourth quarter of 2026, as quoted on CNBC.
OpenAI is also exploring a tender offer that would allow employees to sell shares at the company's latest valuation, helping provide liquidity ahead of a public listing.
OpenAI's Growth Story
Since launching ChatGPT in 2022, OpenAI has become one of the world's most valuable private companies. ChatGPT now serves more than 900 million weekly active users.
At the same time, OpenAI faces mounting competition from Anthropic, Google and Elon Musk's xAI, which was merged with SpaceX earlier this year.
OpenAI has raised more than $180 billion and continues to spend heavily on computing infrastructure and AI model development.
The company is also investing aggressively in enterprise software and its AI coding assistant Codex, which competes directly with Anthropic's Claude Code.
Perplexity Sticks to Its 2028 Plan
While Anthropic and OpenAI are accelerating toward public markets, AI search startup Perplexity is maintaining a longer-term approach.
CEO Aravind Srinivas said the company remains committed to pursuing an IPO in 2028 regardless of how Anthropic's and OpenAI's listings perform, per Reuters, as quoted on Yahoo Finance.
ETF Investors Should Pay Attention
The growing wave of AI-related IPOs could create opportunities for investors through thematic ETFs.
Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) and Roundhill Generative AI & Technology ETF (CHAT - Free Report) could eventually gain exposure to newly public AI leaders.
Meanwhile, REX Shares and Tuttle Capital Management have proposed a 2X leveraged ETF tied to Anthropic's future publicly traded stock. If approved, the fund would seek to deliver twice the daily performance of Anthropic shares after the company goes public.
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Don't Fear Higher Rates: Play AI ETFs as IPO Race Heats Up
Key Takeaways
Mega IPOs are currently setting the tone of Wall Street. SpaceX (SPCX - Free Report) made a blockbuster debut last week, and the coming months are likely to witness a wave of high-profile artificial intelligence (AI) IPOs. SpaceX's landmark offering could serve as a key indicator of market appetite for large-scale AI and technology listings.
To add to this, the United States announced late Sunday that a ceasefire deal with Iran has been reached, with President Trump calling the agreement "complete" in a post to Truth Social, as quoted on Yahoo Finance. The move is a great positive for the global markets.
Agreed, rates are expected to remain higher for longer as hot inflation readings could fuel debate about the odds of an interest rate hike this year. And a high-rate environment is a negative for tech stocks.
But Anthropic, OpenAI and Perplexity represent three of the most valuable private AI companies in the world, each pursuing a different path to the public markets. Anthropic currently leads the IPO race, OpenAI is close behind and Perplexity remains focused on a 2028 debut.
If these listings are well received — the odds appear favorable — they may create solid opportunities for ETF investors seeking exposure to the sector. The IPO euphoria could even bypass the Fed rate hike fears and a likely tech slump. Let’s delve a little deeper.
Anthropic Eyes a Massive IPO
AI startup Anthropic, best known for its Claude chatbot and AI coding platform Claude Code, has recently confidentially submitted draft registration documents to the U.S. Securities and Exchange Commission (SEC) for a proposed IPO.
Anthropic's IPO filing follows a recent $65 billion funding round, which valued the company at $965 billion, surpassing OpenAI's $852 billion valuation recorded in March. The company is reportedly considering an offering that could raise more than $60 billion.
Anthropic’s Enterprise Demand Drives Growth
Anthropic derives roughly 80% of its revenues from enterprise customers. A major contributor to that growth has been Claude Code, the company's AI-powered coding assistant that automates portions of the software development process.
Annualized revenues from Claude Code have climbed to $2.5 billion, while business subscriptions have quadrupled since the beginning of the year. Anthropic's overall annualized revenue run rate surpassed $47 billion in early May, up sharply from $30 billion in April and approximately $9 billion a year earlier (read: ETFs in Focus as Anthropic Eyes a Blockbuster IPO).
OpenAI Joins the IPO Wave
Just a week after Anthropic's filing, OpenAI confidentially submitted its own IPO paperwork to regulators. The company has reportedly been preparing for a public debut as early as the fourth quarter of 2026, as quoted on CNBC.
OpenAI is also exploring a tender offer that would allow employees to sell shares at the company's latest valuation, helping provide liquidity ahead of a public listing.
OpenAI's Growth Story
Since launching ChatGPT in 2022, OpenAI has become one of the world's most valuable private companies. ChatGPT now serves more than 900 million weekly active users.
At the same time, OpenAI faces mounting competition from Anthropic, Google and Elon Musk's xAI, which was merged with SpaceX earlier this year.
OpenAI has raised more than $180 billion and continues to spend heavily on computing infrastructure and AI model development.
The company is also investing aggressively in enterprise software and its AI coding assistant Codex, which competes directly with Anthropic's Claude Code.
Perplexity Sticks to Its 2028 Plan
While Anthropic and OpenAI are accelerating toward public markets, AI search startup Perplexity is maintaining a longer-term approach.
CEO Aravind Srinivas said the company remains committed to pursuing an IPO in 2028 regardless of how Anthropic's and OpenAI's listings perform, per Reuters, as quoted on Yahoo Finance.
ETF Investors Should Pay Attention
The growing wave of AI-related IPOs could create opportunities for investors through thematic ETFs.
Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) and Roundhill Generative AI & Technology ETF (CHAT - Free Report) could eventually gain exposure to newly public AI leaders.
Meanwhile, REX Shares and Tuttle Capital Management have proposed a 2X leveraged ETF tied to Anthropic's future publicly traded stock. If approved, the fund would seek to deliver twice the daily performance of Anthropic shares after the company goes public.