Anthropic high junk investment rating expected as Alphabet sheds $500 billion in value. Is there a soft landing for AI?

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Summary

This opinion piece examines recent AI-related market losses, including Alphabet's $500 billion drop and concerns about Anthropic's expected 'high junk' BB credit rating post-IPO, questioning whether these signal a broader AI downturn or soft landing.

This week made me take a new look at AI. China shed the first half trillion in AI related business value last week. This week Alphabet shaved another, or their own half trillion in market value. There are only a handful of companies on the planet who could shrug off a loss that size and go about as if it didn't happen. Many believe it is an AI related loss. It is not as damaging as the metaverse decision was to Facebook. But is it the proper AI wake up call which has been expected as of late? The most recent news may start the market reset AI has so far managed to avoid. Blackstone may be concerned that the Anthropic ipo could be complicated by an expected "high junk" or BB investment rating after their IPO. The cloud rental fees Alphabet and to a lesser degree Amazon make, and are expected to make going forward, could sputter. Anthropic could be handicapped trying to build out its own compute with the BB rating making borrowing more difficult. Are these the symptoms of the AI downturn harbinger? It is hard to imagine Anthropic as a company that generates many billions in revenue derailed by lending shortage. The same, to a different unique degree goes for OpenAI. XAI has already insulated itself, for now at least, but there is no denying one fact. The AI space, and it's forever expansion has hit more than a speed bump. In 2027 there may be a smaller handful of invincible AI companies. We may have been distracted by wondering if AI would exterminate humanity. I think instead we are about to see if AI can demonstrate its own survival. Or at least engeneer the survival of some of its particular parent companies.
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