OpenAI IPO Rumors Raise Concerns Among Executives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy MSFT?
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.IPO RUMORS:Some OpenAI executives were surprised by a Wall Street Journal report that said OpenAI was aiming to IPO in December, The New York Times' Cade Metz and Mike Isaac, with two people familiar with the company's internal discussions saying that their main reason for concern was their belief that the company "wasn't ready." OpenAI is hoping to triple its revenue this year from the roughly $13B in 2025 revenue, the report notes.NEW FUNDING:Anthropicit raised $30B in Series G funding led by GIC and Coatue, valuing Anthropic at $380B post-money. The round was co-led by D. E. Shaw Ventures, Dragoneer, Founders Fund, ICONIQ, and MGX. The investment will fuel the frontier research, product development, and infrastructure expansions that have made Anthropic the market leader in enterprise AI and coding. Significant investors in this round include Accel, Addition, Alpha Wave Global, Altimeter, AMP PBC, Appaloosa LP, Baillie Gifford, Bessemer Venture Partners, affiliated funds of BlackRock, Blackstone, D1 Capital Partners, Fidelity Management & Research Company, General Catalyst, Greenoaks, Growth Equity at Goldman Sachs Alternatives, Insight Partners, Jane Street, JPMorganChase through its Security and Resiliency Initiative and Growth Equity Partners, Lightspeed Venture Partners, Menlo Ventures, Morgan Stanley Investment Management, NX1 Capital, Qatar Investment Authority, Sands Capital, Sequoia Capital, Temasek, TowerBrook, TPG, Whale Rock Capital, and XN. This round also includes a portion of the previously announced investments from Microsoftand Nvidia.CLASSIFIED NETWORKS:The Pentagon is urging leading AI companies, including Google, xAI, OpenAI and Anthropic, to deploy their models on classified military networks with fewer standard user restrictions, Reuters' David Jeans and Deepa Seetharaman. The goal, according to officials, is to make advanced AI tools accessible across both unclassified and classified domains to support defense applications, according to the report.AI SELF-SUFFICIENCY:Microsoftis planning to pursue "true self-sufficiency" in the AI space by building its own models and reducing reliance on OpenAI, Melissa Heikkila of The Financial Times, citing comments made by AI chief Mustafa Suleyman. According to Suleyman, this strategic shift following a restructuring of the company's relationship with OpenAI in October, prompting Microsoft to advance its AI technology independently.IN-HOUSE AI CODING ASSISTANT:Amazonis directing internal teams to use its in-house AI coding assistant, Kiro, for production work, a move that has drawn criticism from roughly 1,500 employees advocating for the use of Anthropic's Claude Code instead, Business Insider's Eugene Kim. The situation highlights growing internal debate over tooling preferences and broader competition among enterprise AI coding platforms, Kim writes.BETS ON AI:As the housing market stalls, Zillow'sCEO Jeremy Wacksman sees AI as "an ingredient rather than a threat" that can both help the company protect its turf and reinvent how people search for homes, Wired's Steven Levy. Zillow is integrating AI into every aspect of its business, from the way it showcases houses to having agents automate its workflow. Meanwhile, working with a real-estate analytics company called HouseCanary, Googlehas been experimenting in several cities with putting home listings alongside Google real estate agent ads in search. If the test works out, it's easy to imagine that Google one day might bring the same data to AI products like Gemini, Wired says. Predictably, the Google experiment led to yet another dip in Zillow's stock price. It also generated speculation that Google might buy Zillow, the publication adds.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic Secures $30B Funding Round, Valuation Reaches $380B
- Funding Exceeds Expectations: Anthropic successfully raised $30 billion in its latest Series G funding round, achieving a valuation of $380 billion, which underscores the strong market demand for its AI products and solidifies its leadership position in enterprise AI.
- Significant Revenue Growth: The company's revenue run rate has reached $14 billion, growing more than tenfold over the past three years, indicating a substantial increase in market acceptance and usage of its products, particularly among enterprise clients.
- Surge in Claude Code Demand: Claude Code's revenue run rate now exceeds $2.5 billion, having doubled since the start of the year, with business subscriptions quadrupling since early 2026, reflecting deepening reliance on the tool by enterprises.
- Potential IPO Plans: Anthropic is reportedly working with advisors in preparation for a potential initial public offering later this year, signaling the company's confidence in future growth and its intention to leverage capital markets for further business expansion.
See More
AI Investment Opportunities Continue to Heat Up
- Strong Market Demand: Despite concerns over spending on hyperscale data centers, the demand in the AI sector remains robust, driving significant growth for companies like Nvidia and Broadcom, which are expected to benefit from this trend in the coming years.
- Significant Technological Edge: Nvidia's graphics processing units (GPUs) are the industry standard for AI computing, while Broadcom collaborates with AI hyperscalers to design custom chips, ensuring their competitiveness in the AI hardware market.
- Key Semiconductor Supply Chain: Taiwan Semiconductor Manufacturing Company (TSMC) fabricates logic chips for Nvidia and Broadcom, and its new 2-nanometer chip technology promises reduced power consumption, further solidifying its critical role in the AI technology supply chain.
- Surging Cloud Computing Demand: Following their latest earnings reports, Alphabet and Microsoft saw stock price declines; however, their strong demand and revenue growth in cloud computing (39% and 48% respectively) indicate that AI investments are justified and will continue to drive their business growth.
See More
Surging AI Hardware Demand Benefits Nvidia and Broadcom
- Surging AI Hardware Demand: Nvidia and Broadcom are poised for strong growth due to massive spending in AI data centers, with Nvidia's GPUs being the industry standard for AI computing and Broadcom collaborating with AI hyperscalers to design custom chips, solidifying their market positions.
- Taiwan Semiconductor's Key Role: As the primary chip supplier for Nvidia and Broadcom, Taiwan Semiconductor plays an essential role in AI hardware components, and its new 2-nanometer chip technology promises reduced power consumption, supporting sustainable AI data center development and positioning it to benefit from rising AI spending.
- Cloud Giants' Performance: Alphabet and Microsoft reported robust cloud computing growth in their latest earnings, achieving revenue increases of 39% and 48% respectively; despite stock pullbacks, their investments in AI and strong market demand indicate significant future growth potential.
- Emerging Investment Opportunities: With ongoing AI investment trends, several stocks are emerging as potential buys, and analysts suggest that investors should consider increasing their positions during price pullbacks, particularly in companies like Nvidia and Broadcom, which are expected to shine in the coming years.
See More
Nvidia Shares Surge 1180% Amid Strong AI Spending Forecasts
- Stock Performance: Nvidia's shares have surged 1180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as the median target price of $250 implies a 33% upside.
- Market Share: Nvidia holds over 80% market share in AI accelerators, and its full-stack strategy allows it to capture 30% of total AI data center capital expenditures as profit, showcasing its formidable competitive position in AI infrastructure.
- Capex Forecast: AI hyperscaler capital expenditures are projected to reach $650 billion in 2026, significantly up from initial estimates of a 19% increase, now revised to 70%, which is positive news for Nvidia as it stands to gain a larger market share.
- Industry Trends: Companies like Alphabet, Amazon, Meta, and Microsoft have all indicated substantial increases in capital expenditures, forecasting $180 billion, $200 billion, $125 billion, and $140 billion respectively for 2026, highlighting that AI investments are driving growth across the industry.
See More
Anthropic Launches Claude Cowork AI Agent to Transform Mundane Tasks
- AI Tool Launch: Anthropic has introduced the Claude Cowork AI agent designed to simplify mundane tasks such as searching and organizing files, which has raised concerns among investors about the potential disruption to traditional software and digital automation providers.
- Market Reaction: The S&P North American Technology Software Index has plunged over 30% into bear market territory, reflecting investor fears that AI technologies could replace traditional software, although many experts disagree with this outlook.
- Expert Opinions: Nvidia CEO Jensen Huang and Wedbush analyst Dan Ives argue that the software industry is not in decline and that enterprises are unlikely to abandon decades of investment in software and infrastructure, creating buying opportunities for certain tech stocks.
- Stock Analysis: Companies like Microsoft, CrowdStrike, Snowflake, Salesforce, and Palantir are viewed as having strong growth potential in the AI sector, despite their stock prices having fallen from peaks, with analysts remaining optimistic about their future performance.
See More
Amazon's Stock Underperforms but Long-Term Prospects Remain Positive
- Sales and Profit Growth: Amazon's sales reached $716.9 billion in 2025, with North America and international segments accounting for 82%, and while operating income was $34.7 billion, representing only 43% of total income, it still indicates stable growth potential.
- Cloud Computing Advantage: Amazon Web Services (AWS) achieved a 14.5% increase in operating income to $45.6 billion in 2025, leading the market with a 30% share, showcasing strong competitive advantages and future growth potential.
- Capital Expenditure Plans: Despite plans to increase capital expenditures to $200 billion in 2025, significantly higher than $131.8 billion, management believes this will yield substantial returns for shareholders, although it may impact cash flow in the short term.
- Increased Valuation Attractiveness: Amazon's price-to-earnings ratio has dropped from 40 to 28, and while still above the S&P 500's 30, the current valuation is more attractive compared to its 10-year average of 82, suggesting potential for higher returns for long-term investors.
See More
Anthropic Secures $30B Funding Round, Valuation Reaches $380B
- Funding Exceeds Expectations: Anthropic successfully raised $30 billion in its latest Series G funding round, achieving a valuation of $380 billion, which underscores the strong market demand for its AI products and solidifies its leadership position in enterprise AI.
- Significant Revenue Growth: The company's revenue run rate has reached $14 billion, growing more than tenfold over the past three years, indicating a substantial increase in market acceptance and usage of its products, particularly among enterprise clients.
- Surge in Claude Code Demand: Claude Code's revenue run rate now exceeds $2.5 billion, having doubled since the start of the year, with business subscriptions quadrupling since early 2026, reflecting deepening reliance on the tool by enterprises.
- Potential IPO Plans: Anthropic is reportedly working with advisors in preparation for a potential initial public offering later this year, signaling the company's confidence in future growth and its intention to leverage capital markets for further business expansion.
See More
AI Investment Opportunities Continue to Heat Up
- Strong Market Demand: Despite concerns over spending on hyperscale data centers, the demand in the AI sector remains robust, driving significant growth for companies like Nvidia and Broadcom, which are expected to benefit from this trend in the coming years.
- Significant Technological Edge: Nvidia's graphics processing units (GPUs) are the industry standard for AI computing, while Broadcom collaborates with AI hyperscalers to design custom chips, ensuring their competitiveness in the AI hardware market.
- Key Semiconductor Supply Chain: Taiwan Semiconductor Manufacturing Company (TSMC) fabricates logic chips for Nvidia and Broadcom, and its new 2-nanometer chip technology promises reduced power consumption, further solidifying its critical role in the AI technology supply chain.
- Surging Cloud Computing Demand: Following their latest earnings reports, Alphabet and Microsoft saw stock price declines; however, their strong demand and revenue growth in cloud computing (39% and 48% respectively) indicate that AI investments are justified and will continue to drive their business growth.
See More
Surging AI Hardware Demand Benefits Nvidia and Broadcom
- Surging AI Hardware Demand: Nvidia and Broadcom are poised for strong growth due to massive spending in AI data centers, with Nvidia's GPUs being the industry standard for AI computing and Broadcom collaborating with AI hyperscalers to design custom chips, solidifying their market positions.
- Taiwan Semiconductor's Key Role: As the primary chip supplier for Nvidia and Broadcom, Taiwan Semiconductor plays an essential role in AI hardware components, and its new 2-nanometer chip technology promises reduced power consumption, supporting sustainable AI data center development and positioning it to benefit from rising AI spending.
- Cloud Giants' Performance: Alphabet and Microsoft reported robust cloud computing growth in their latest earnings, achieving revenue increases of 39% and 48% respectively; despite stock pullbacks, their investments in AI and strong market demand indicate significant future growth potential.
- Emerging Investment Opportunities: With ongoing AI investment trends, several stocks are emerging as potential buys, and analysts suggest that investors should consider increasing their positions during price pullbacks, particularly in companies like Nvidia and Broadcom, which are expected to shine in the coming years.
See More
Nvidia Shares Surge 1180% Amid Strong AI Spending Forecasts
- Stock Performance: Nvidia's shares have surged 1180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as the median target price of $250 implies a 33% upside.
- Market Share: Nvidia holds over 80% market share in AI accelerators, and its full-stack strategy allows it to capture 30% of total AI data center capital expenditures as profit, showcasing its formidable competitive position in AI infrastructure.
- Capex Forecast: AI hyperscaler capital expenditures are projected to reach $650 billion in 2026, significantly up from initial estimates of a 19% increase, now revised to 70%, which is positive news for Nvidia as it stands to gain a larger market share.
- Industry Trends: Companies like Alphabet, Amazon, Meta, and Microsoft have all indicated substantial increases in capital expenditures, forecasting $180 billion, $200 billion, $125 billion, and $140 billion respectively for 2026, highlighting that AI investments are driving growth across the industry.
See More
Anthropic Launches Claude Cowork AI Agent to Transform Mundane Tasks
- AI Tool Launch: Anthropic has introduced the Claude Cowork AI agent designed to simplify mundane tasks such as searching and organizing files, which has raised concerns among investors about the potential disruption to traditional software and digital automation providers.
- Market Reaction: The S&P North American Technology Software Index has plunged over 30% into bear market territory, reflecting investor fears that AI technologies could replace traditional software, although many experts disagree with this outlook.
- Expert Opinions: Nvidia CEO Jensen Huang and Wedbush analyst Dan Ives argue that the software industry is not in decline and that enterprises are unlikely to abandon decades of investment in software and infrastructure, creating buying opportunities for certain tech stocks.
- Stock Analysis: Companies like Microsoft, CrowdStrike, Snowflake, Salesforce, and Palantir are viewed as having strong growth potential in the AI sector, despite their stock prices having fallen from peaks, with analysts remaining optimistic about their future performance.
See More
Amazon's Stock Underperforms but Long-Term Prospects Remain Positive
- Sales and Profit Growth: Amazon's sales reached $716.9 billion in 2025, with North America and international segments accounting for 82%, and while operating income was $34.7 billion, representing only 43% of total income, it still indicates stable growth potential.
- Cloud Computing Advantage: Amazon Web Services (AWS) achieved a 14.5% increase in operating income to $45.6 billion in 2025, leading the market with a 30% share, showcasing strong competitive advantages and future growth potential.
- Capital Expenditure Plans: Despite plans to increase capital expenditures to $200 billion in 2025, significantly higher than $131.8 billion, management believes this will yield substantial returns for shareholders, although it may impact cash flow in the short term.
- Increased Valuation Attractiveness: Amazon's price-to-earnings ratio has dropped from 40 to 28, and while still above the S&P 500's 30, the current valuation is more attractive compared to its 10-year average of 82, suggesting potential for higher returns for long-term investors.
See More
