Anthropic, the AI startup known for its Claude language model, is anticipated to receive a high “junk” credit rating from rating agencies after its imminent initial public offering, according to a Financial Times report. This projection stems from comments by Blackstone, the major investor behind a recent $63 billion financing deal to support the company’s chip development. Earlier this year, Blackstone had predicted an investment-grade rating for Anthropic by 2027, but recent updates suggest a downgrade to a double-B classification, the highest level of speculative or “junk” status.

The shift in Blackstone’s outlook signals mounting concerns about Anthropic’s financial health given its aggressive spending patterns. The AI lab has been rapidly expanding its computing power contracts over the past year, raising alarms among investors about the sustainability of its capital burn. Such a high junk rating would increase the cost and difficulty of raising funds for continued operations, potentially restricting the company’s ability to fuel its growth strategy at the current pace.

Anthropic officially submitted its IPO filing earlier this week, starting a wave of speculation about the implications of one of the AI industry’s largest public debuts to date. While the company has secured vast investments to back its ambitions, the credit outlook points to challenges ahead in balancing the need for substantial capital with investor caution. Both Anthropic and Blackstone declined to comment on the rating forecast when approached by TechCrunch.

The anticipated junk rating and associated financial hurdles arrive as Anthropic positions itself to compete with major players in the AI sector. The company’s trajectory will be closely watched given its high-profile financing and the broader momentum around artificial intelligence technologies. The outcome of the IPO and subsequent credit evaluations will play a critical role in shaping Anthropic’s ability to maintain its rapid innovation and market presence.