The news broke at 7am London time: Anthropic, the artificial intelligence juggernaut backed by Google and Salesforce, has filed for a New York listing. The company, valued at over $30 billion in its last private round, is expected to float before the summer. For the City, this is a double-edged sword. On one hand, it signals a fresh wave of liquidity for a sector that has become synonymous with frothy valuations. On the other, it is a stark reminder that Britain’s tech ecosystem remains a feeder league for American markets.
Let us be clear. Anthropic’s decision to list in New York rather than London is not an anomaly. It is a pattern. The London Stock Exchange has become a graveyard for tech unicorns that promised to stay but found the water warmer across the pond. The reasons are well rehearsed: deeper pools of capital, more sophisticated institutional investors, and a regulatory environment that does not treat highgrowth companies as if they were utilities. The result is a talent exodus. Anthropic will open a new office in Palo Alto next month. Expect a flood of CVs from King’s Cross to Shoreditch.
The government’s response has been predictable. The Chancellor has mumbled something about a 'revised prospectus regime' and 'patient capital'. But patient capital does not pay for talent. Market efficiency does. And the market is telling us that London is a secondtier venue for ambitious tech firms. Look at the numbers: in 2024, only 12 tech IPOs raised more than $100 million in London. New York had 68. This gap is not closing. It is widening.
What does this mean for gilt yields? Precious little in the short term. But in the medium term, it undermines the UK’s tax base. If Anthropic’s listing creates a wave of millionaire engineers, those engineers will pay US capital gains tax, not UK income tax. The Treasury will lose revenue. The Office for Budget Responsibility will revise down its forecasts. And the Bank of England will be forced to choose between tightening to support the pound and loosening to support growth. That is not a choice you want to make with inflation still above target.
The broader implication is that the UK is losing its competitive edge in a sector that defines the next decade. The government talks of 'levelling up' but cannot level a playing field when it cannot even keep the players on the pitch. The British tech sector has produced worldclass research and talent. But we fail to capitalise on it. Anthropic’s cofounders are both British. They studied at Oxford and Cambridge. Now they will build their billiondollar empire in California. The tragedy is that this is routine.
There is a way to reverse this. Drastically cut capital gains tax for tech founders who list in London. Streamline the FCA listing rules. Create a sovereign wealth fund that backs homegrown AI companies. But that would require a government willing to pick winners and accept risk. Instead we get tinkering around the edges: a review of the listings regime here, a task force there. Meanwhile, the talent drains away.
The pound is down 0.3% against the dollar this morning. Not because of Anthropic, but because the market is pricing in a slow decline in the UK’s competitiveness. A decline that is no longer a threat. It is a reality.
So yes, celebrate Anthropic’s success if you must. It is a remarkable company. But do not mistake a US IPO for a British triumph. It is a tax on our complacency. And the interest is coming due.
