Anthropic and OpenAI are pushing for an investment-grade rating that would facilitate cheaper financing following their IPOs. According to expansion.com, this strategy aims to improve their borrowing conditions and access to the corporate bond market.
The artificial intelligence labs Anthropic and OpenAI are working to obtain a credit rating of investment grade before their imminent IPOs. This would allow them to reduce borrowing costs and facilitate funding for their infrastructure projects, according to information from expansion.com.
Morgan Stanley and Goldman Sachs have been in talks with credit rating agencies to achieve this goal, which would help them access a corporate bond market valued at $11.7 trillion.
Analysts from the agencies have noted that bankers argue that the IPO could free up liquidity and improve the financial health of both companies, which are currently reporting losses. A credit analyst commented: "Wall Street is trying to minimise the impact of their debt by arguing that these two companies will soon have abundant liquidity."
Obtaining this rating from Fitch, Moody's, and S&P would be a significant advancement for Anthropic and OpenAI, as it would open the door to institutional investors who typically avoid higher-risk debt. This strategy follows Wall Street's trend of adapting practices to facilitate large IPOs, as SpaceX did in June, being the first tech company to receive an immediate investment-grade rating.
Discussions about the ratings are ongoing, and no public plans for their IPOs have yet been presented. Both companies have heavily relied on venture capital investors and are seeking to reduce their dependence on external financing.
It is expected that obtaining an investment-grade rating will provide them with access to better loan conditions, which is crucial given the increasing debt associated with their artificial intelligence projects. The market situation and the future profitability of both companies will be determining factors in the credit agencies' decision.
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