In a development that will do little to lift the spirits of Square Mile traders nursing their morning coffee, Anthropic, the artificial intelligence powerhouse with a valuation north of $15 billion, has confirmed plans to list in New York. The decision marks yet another victory for US capital markets and a stinging rebuke for London’s ambitions to become a global tech hub.
The move follows a familiar pattern: a high-growth British-born or UK-based technology firm opts for the deeper liquidity, higher valuations, and more favourable regulatory environment of Wall Street. Anthropic joins a growing list of UK tech unicorns that have chosen New York or even Amsterdam over London. For a government that has made much of its post-Brexit drive to attract technology listings, this is a cold dose of reality.
Why choose New York? The answer, as so often in finance, comes down to the numbers. The US markets offer a valuation premium that can be as high as 30% for tech firms compared to London. Then there is the investor base. The US has a more developed ecosystem of specialist technology funds, many of which view London as a secondary market. Regulatory costs are also lower in the US, despite the spectacle of SEC oversight. In London, the FCA’s gruelling regime has been blamed for deterring listings, particularly in the high-growth sectors that the UK desperately needs to attract.
Anthropic’s decision is particularly galling given the government’s recent efforts to reform listing rules. The Treasury has relaxed eligibility criteria, introduced dual-class share structures, and even considered watering down prospectus requirements. Yet the flow of companies to New York continues. The market is voting with its feet, and it is voting for dollars.
The implications for UK investors will be significant. Pension funds and retail investors alike will lose the opportunity to buy into one of the most exciting companies in the AI sector. Instead, they will have to access Anthropic through US-listed baskets or ETFs, incurring currency risk and additional fees. More broadly, the London Stock Exchange risks being relegated to a backwater for natural resources and financial services, unable to attract the growth stocks that drive modern economies.
The blame lies partly with the government, which has failed to address the root causes of London’s declining competitiveness. High stamp duty on share trading, a cumbersome regulatory framework, and a shortage of domestic tech investors are all contributing factors. But there is also a cultural issue: the City of London has long been suspicious of technology stories, preferring to stick with what it knows. While US investors are willing to bet big on potential, UK institutions have historically demanded proven earnings.
For Anthropic, the New York listing should unlock access to the capital it needs to continue its rapid growth. The company is at the forefront of AI safety research, competing with the likes of OpenAI and Google DeepMind. Its decision to list in the US sends a signal that American markets are the natural home for companies with global ambitions. London, for all its talk, is still playing catch-up.
Some will argue that the UK should not chase every tech unicorn: London has strengths in fintech, biotech, and cleantech. But the loss of a high-profile name like Anthropic will further damage the UK’s reputation as a destination for tech IPOs. The government must act decisively to restore confidence. Lowering transaction taxes, streamlining the listing process, and encouraging more institutional investment in technology are all necessary steps. Without them, the exodus will continue.
For now, the Square Mile can only watch as another success story slips through its fingers. The message to the UK is clear: if you want to attract the companies of tomorrow, you must be prepared to compete. And right now, that competition is not even close.
