Investor Seth Klarman Warns of AI Bubble as Baupost Rejects OpenAI, Anthropic

Seth Klarman co-founded Baupost Group in 1982 and has long centered his investment strategy on a margin of safety. The firm managed about $27.4 billion as of March 2023. As generative AI funding rapidly concentrates among a handful of major model developers, Klarman has warned that technology valuations are showing bubble-like characteristics. With the eventual winners difficult to identify, chasing rising valuations could magnify capital losses.

A June 16, 2026, report said Baupost Group had declined opportunities to invest in OpenAI and Anthropic, without disclosing when the approaches occurred or the amounts involved. The firm is instead seeking mispriced “AI losers” and “AI agnostics” whose prospects do not depend on any single model prevailing. It also views credit assets as a more attractive allocation.