Citi warns investors are getting picky about AI-linked IPOs as spending concerns mount

The AI IPO party is not over. But the bouncer is suddenly checking IDs. Aloke Gupte, Citi’s co-head of global equity capital markets, said on October 22, 2026 that investors are becoming more selective about initial public offerings tied to artificial intelligence. The reason is the growing bill for building out AI infrastructure, and the open question of who can keep paying it. Who is feeling the squeeze Gupte’s warning centers on companies that need to keep raising money to fund their expansion. In AI, that describes a lot of the field. The pressure is sharpest among so-called neocloud providers. These are companies built specifically to rent out AI and cloud computing capacity, rather than giant tech firms that run cloud businesses on the side. CoreWeave, one of the best-known names in the category, offers a live example. Its shares fell more than 3% on October 20, 2026, and reportedly lost nearly 25% over the week in mid-to-late October as borrowing costs spiked. The IPO calendar keeps slipping Multiple AI-linked offerings have been postponed recently because of market conditions. SoftBank-backed SB Energy has delayed its plans. Anthropic has also pushed back its listing and is...