Jeff Park Warns Anthropic Could Spiral If IPO Fails to Lift Value

ParaFi Capital partner Jeff Park warned Anthropic could enter a death spiral if an initial public offering fails to produce a significant rise in value, arguing the company relies on equity support to sustain credit for large computing obligations.

Anthropic’s filing on Monday, Nov. 2, listed $895.4 billion in aggregate committed spend under purchase commitments and lease agreements. Substantially all of the amount relates to compute and infrastructure. Of that amount, $213.8 billion is subject to termination rights or conditions before commencement.

The filing lists $16.956 billion in third-quarter revenue. Anthropic’s operating results shifted from $974 million in operating income in the second quarter to a $567 million operating loss in the third.

Park described a severe mismatch between the company’s financing and its obligations. He said an IPO without a significant rise in value could lead to a death spiral. Park previously discussed Anthropic’s IPO and investor demand for liquidity in an earlier conversation.

Park called company failure followed by an acquisition the best outcome. He also said the U.S. government and sovereign funds, including those of the United Arab Emirates and Saudi Arabia, could arrange an international rescue to restore confidence.