The private market frenzy around artificial intelligence is reaching new heights, with multiple AI companies targeting astronomical valuations and planning massive initial public offerings (IPOs) that could reshape global capital flows. Databricks is reportedly in talks to raise fresh funds at a valuation between $165 billion and $175 billion, just months after being valued at $134 billion. Meanwhile, OpenAI, Anthropic, and SpaceX are all eyeing IPOs with valuations ranging from hundreds of billions to a trillion dollars. While this represents a historic moment for the tech industry, the sheer scale of these offerings is prompting concerns that the flood of new equity could siphon liquidity away from other asset classes, including cryptocurrencies.
According to multiple reports, Goldman Sachs and Morgan Stanley are competing for the coveted "lead left" roles in the IPOs of OpenAI and Anthropic, the world's two largest AI companies. SpaceX, which already has Goldman as lead underwriter for its $75 billion stock issuance on June 12, could raise even more. Collectively, the three mega-IPOs are estimated to bring $150 billion to $195 billion in new equity to the market within a short timeframe, more than doubling global IPO proceeds so far in 2026. Jay Ritter, a finance professor at the University of Florida, noted that lead underwriters control stock allocations, which can generate lucrative "soft dollar" revenue streams for the banks involved. This concentration of capital raising could cause investors to reallocate funds, potentially diverting money from mid- and small-cap stocks—and even from alternative assets like bitcoin and other cryptocurrencies.
The potential crowding effect is a growing topic of discussion among market analysts. As noted by Gil Luria of D.A. Davidson, the timing of these IPOs means that OpenAI’s offering could drain the capital needed for later listings, creating a “crowding” problem. With global IPOs already at their fastest pace since 2021, the sudden appearance of multiple ultra-large deals could test the capacity of global markets to absorb such volume without disrupting liquidity in other arenas. For crypto traders, a period of intense IPO activity might translate into reduced speculative appetite and tighter liquidity conditions, especially if institutional investors rebalance their portfolios toward these high-profile tech listings.
Of course, the AI sector's rapid ascent is not without its own risks. Questions are mounting over whether some AI revenues are merely a “closed loop” of cloud credits, with tech giants like Microsoft and Amazon providing funding to startups that then use those funds to pay for cloud services from the same companies. Whether the AI boom is sustainable remains an open debate, but one thing is clear: the sheer magnitude of these IPOs will command global attention and could have far-reaching implications for portfolio managers and market liquidity—crypto included.
