#AIInvestmentGrade

#AIInvestmentGrade AI's next big funding source may be the bond market 👀 OpenAI and Anthropic are reportedly pursuing investment-grade ratings, potentially opening access to cheaper, longer-term debt for massive compute and data center spending. What caught my attention is what this says about AI's evolution. The industry was funded by venture capital, then strategic partners. Now it wants bonds. AI isn't just becoming a technology sector. It's becoming a new credit market.

An investment-grade rating would change how AI expansion is financed, not prove that the economics work. OpenAI and Anthropic are seeking ratings that could open bond markets, though neither has issued debt yet. My read: broader funding options could ease reliance on equity, but borrowing would make the timing of cash flows more consequential for compute-heavy growth. #AIInvestmentGrade

🦔Wall Street's biggest banks are lobbying credit rating agencies to give OpenAI and Anthropic investment-grade ratings right after their IPOs. Neither company is profitable. Neither generates positive free cash flow. An investment-grade rating would let pension funds and insurers buy their debt and open access to the $11.7 trillion corporate bond market. One senior credit analyst told the FT "we still treat OpenAI and Anthropic as deep in speculative grade. They are in the red." Previous tech companies like Meta, Netflix, and Tesla waited a decade or more. My Take An investment-grade rating means pension funds and insurers can buy this debt. Meaning your retirement money and your insurance premiums flowing into two companies that have never turned a profit. The bankers' argument is that the IPO itself will fix the balance sheet, but credit is supposed to measure whether a company can pay its debts from operations, not whether it can sell enough stock to cover that gap. Everyone in this chain needs these ratings to go through. Nvidia has $105 billion in credit support for an OpenAI data center that terminates when OpenAI gets a "satisfactory credit rating." Oracle is one notch above junk after financing OpenAI's $300 billion data center buildout. Google and Broadcom extended tens of billions to back Anthropic's chip usage. If the rating agencies stamp two unprofitable companies as investment grade so that pension funds can hold the debt, I think we need to have a serious conversation about what those ratings mean anymore. We had that conversation in 2008 and apparently we already forgot about it. Hedgie🤗

[Pharaoh's Market Watch] OpenAI and Anthropic are already considering issuing bonds even before going public? Pharaoh directly says this is even more worth watching than the IPO itself — investment banks are fighting to secure an "investment-grade at birth" credit rating for them, aiming to directly enter the $11.7 trillion U.S. corporate bond market and reduce the financing costs of AI infrastructure. #CryptoTreasuryDivides #CLARITYActSept15 #ZECGoesInstitutional

Bankers for OpenAI and Anthropic — both of which are barreling towards IPOs — are reportedly pressing for the AI giants to quickly win investment-grade credit ratings.

Oracle’s stock gets a boost as the OpenAI ecosystem comes back into favor