Appetite for OpenAI, Anthropic IPOs will be strong despite some negative headlines: Ives

Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT) are barreling toward their respective initial public offerings. But recent headlines, ranging from AI safety to revised revenue estimates, could raise concerns about AI startups' projected monster valuations.

Anthropic, according to Reuters, which got an early look at the company's S-1 investor prospectus, is targeting a $2 trillion valuation, while OpenAI, Bloomberg reports, is angling for a new funding round valuing it at $1.4 trillion.

Despite such sky-high numbers and controversies surrounding the AI labs, Yorkville Ives partner and senior managing director Dan Ives told Yahoo Finance that there are plenty of investors looking to get their hands on stock of the companies.

"I think appetite is going to be strong," Ives said, adding that Anthropic and OpenAI are at the epicenter of the AI revolution.

And while "any breadcrumb that can be viewed negatively … is going to make investors nervous," he said, the overall atmosphere creates buying opportunities, and it's "not the time to be skittish."

Ives also notes that the AI market is more than just the two big AI labs, including firms like Palantir (PLTR), Snowflake (SNOW), and others.

Questions about Anthropic's and OpenAI's revenue continue to swirl ahead of their IPOs. On Thursday, the Financial Times reported that prior annualized revenue approximations by investors overestimated OpenAI's revenue by $20 billion.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

Read the latest financial and business news from Yahoo Finance