Anthropic's IPO filing: What retail investors should weigh

Anthropic filed an S-1 prospectus with the SEC on Monday, signaling a near-term IPO that could be one of the largest in history, potentially exceeding SpaceX's $75 billion debut. The AI company behind Claude is targeting a valuation between $1.5 trillion and over $2 trillion. The filing outlines significant risks, including regulatory shifts, AI's existential threats, and massive power needs for computing. Historical data shows large companies with strong sales often match market returns post-IPO, but immediate price pops may not benefit retail investors, as most offering shares go to institutions. Anthropic is considering offering 15% to 20% of shares to retail investors via JPMorgan. Experts warn that at such a high valuation, upside is limited, and recommend investors use only disposable "play money" for individual stocks, favoring low-cost index funds for broad exposure.