Anthropic, OpenAI File for IPO as Former White House Economists Warn AI Bubble Still Inflating

According to former White House economists Jared Bernstein and Ryan Cummings, Anthropic and OpenAI filed for initial public offerings with the Securities and Exchange Commission last month, though pricing and share details remain undisclosed. The economists warned in a Substack post on Wednesday that the AI bubble is "alive and well," noting that AI-related stocks have gained approximately 25% since their prior warning last year, compared to 10% for the broader market.

The economists highlighted that hyperscalers are projected to invest over $750 billion in AI infrastructure this year and nearly $1 trillion next year, with technology investment now representing almost 5% of U.S. GDP—exceeding dot-com bubble levels. They warned that if AI investments fail to generate strong returns within five to seven years, it could trigger investor fatigue and lower valuations, potentially deflating the current AI bubble.