- Ed Zitron questioned whether OpenAI and Anthropic are financially ready for public IPOs.
- OpenAI proposed donating up to a 5% equity stake to support a U.S. Public Wealth Fund.
- Anthropic skipped the government equity proposal and now holds a higher valuation than OpenAI.
OpenAI and Anthropic’s reported plans to pursue initial public offerings have drawn attention after technology critic Ed Zitron questioned whether either company should be allowed to go public. Zitron argued that the financial positions of both AI firms are too weak to support an IPO.
He compared their situation to WeWork, the former startup valued at $47 billion, whose highly anticipated public offering collapsed before the company later filed for bankruptcy. Zitron also claimed that OpenAI burned $20.9 billion in 2025, while expenses continued to increase alongside revenue.
Referring to the economics of generative AI, he said, “There’s not really a business there,” bringing renewed focus to the financial foundations of two of the world’s highest-valued AI companies.
OpenAI Advances Government Equity Proposal
While questions over financial sustainability continue, OpenAI is separately discussing a proposal that would give the U.S. government an equity stake in the company. According to reports, the company has proposed donating between 1% and 5% of its shares to the federal government rather than selling the stake for cash.
The discussions have involved President Donald Trump, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent. If the proposal moves forward, the donated shares would be used to establish a Public Wealth Fund, an idea outlined in OpenAI’s April 2026 policy paper, Industrial Policy for the Intelligence Age.
Under the proposal, the fund would invest in long-term AI-related assets and distribute future returns to American households. No final percentage has been agreed upon, and no formal agreement has been announced.
Proposal Differs From Intel Investment
The proposed arrangement differs from the federal government’s investment in Intel during 2025. In that transaction, the government converted $8.9 billion in previously committed but unpaid CHIPS Act grants into equity, placing taxpayer funds at financial risk.
OpenAI’s proposal instead involves donated equity. Existing shareholders would be diluted to create the government’s ownership position, while the government would not contribute capital. The proposal also specifies that the government would receive passive ownership without board seats, voting rights, or governance authority.
OpenAI has also suggested that other major U.S. AI companies, including Anthropic, Google, and Meta, could participate under a similar framework, although it remains unclear whether any of those companies intend to do so.
Anthropic Takes a Different Approach
Anthropic has not pursued a government equity arrangement and is currently valued at approximately $965 billion, exceeding OpenAI’s reported valuation of about $852 billion.
Both companies have confidentially filed for IPOs, positioning them among the largest prospective public listings in the technology sector. However, as discussions around ownership structures and financial performance continue, the companies are attracting attention not only for their AI technology but also for the economic models supporting their future growth.
Related: SpaceX, OpenAI, or Anthropic: Which IPO Could Be the Biggest Winner?
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
