Jim Cramer warns of market liquidity risks from AI IPOs

Financial commentator Jim Cramer has issued a warning regarding the potential impact of upcoming artificial intelligence mega-IPOs on Wall Street. Following Anthropic’s filing of its Form S-1 for an initial public offering, Cramer suggested that massive interest in companies like Anthropic and OpenAI could drain significant liquidity from the broader stock market.

Cramer argues that investors may shift capital away from currently listed companies to participate in these high-profile AI listings, potentially causing a downturn for other stocks. He noted that Anthropic’s entry into public markets could begin as early as mid-November, while OpenAI’s listing is not expected before 2027.

Additionally, Cramer expressed caution regarding the recent rally in AI stocks, citing risks such as high debt levels among smaller infrastructure companies (neoclouds) like CoreWeave, Nebius, and Iren. He also highlighted concerns over the $63 billion financing deal involving Anthropic, Broadcom, and Blackstone, noting that Anthropic is borrowing heavily to purchase hardware rather than utilizing organic profits.