Fed's Bowman warns of 'large correction' as Anthropic IPO nears

Bowman's warning arrives at a delicate moment for the AI trade. She pointed to $800 billion in AI-related debt, off-balance-sheet liabilities, and circular financing as sources of risk, and said a shock would likely slow the AI buildout and soften the economy. Her comments came just as Anthropic's updated prospectus was filed for an IPO expected to be one of the largest listings of all time, even though its valuation has already come in below initial expectations. Tore Opsahl of Nomura noted that any wobbles around the IPO might mean a selloff of the AI theme around the listing, suggesting the first frontier lab to go public will be watched as a gauge of investor appetite for the sector.