Goldman Sachs and Morgan Stanley Compete for Lead Underwriter Roles in OpenAI and Anthropic IPOs
Goldman Sachs and Morgan Stanley are battling for the prestigious "lead left" underwriter position for upcoming IPOs of OpenAI and Anthropic, which could each be worth billions in fees and soft dollar commissions. The lead underwriter role is highly coveted because it grants the bank control over share allocation to institutional investors and the ability to capture multiples of the fees earned by other underwriters. Goldman has already secured the lead left position for SpaceX's June IPO, and the competition for the AI companies' offerings reflects the enormous financial stakes involved in mega-IPOs.
Goldman Sachs and Morgan Stanley, the dominant players in tech IPOs, are competing intensely for the lead underwriter position on the forthcoming IPOs of OpenAI and Anthropic. Both banks have been selected as top book runners for these deals, but neither has yet been designated as lead left—the position listed first on the prospectus cover page. According to Jay Ritter, a leading IPO expert at the University of Florida, the lead left role is extraordinarily valuable because it grants the underwriter control over share allocation to institutional investors. While all underwriters share in fees and provide analyst coverage, only the lead left bank determines how shares are distributed. Institutional investors compete for allocations by directing "soft dollars"—excess commissions on trades—to the lead underwriter, creating a secondary revenue stream that dwarfs the direct underwriting fees. In the SpaceX example, direct fees are expected to total roughly $600 million, but soft dollar flows could reach approximately $5 billion if the stock pops 20% on opening day, with the lead underwriter capturing the largest portion. The competition reflects the historic scale of these AI company IPOs, which are expected to generate even larger financial opportunities than SpaceX.
What's missing
The article does not specify whether OpenAI and Anthropic have publicly confirmed their selection of Goldman Sachs and Morgan Stanley as top book runners, nor does it provide details on the expected valuation or IPO timeline for either company beyond noting they are scheduled for 2026.
What different sources said
- FortuneCenter
A $7 billion horse race: Goldman Sachs and Morgan Stanley battle for ‘lead left’ position ahead of OpenAI and Anthropic IPOs
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