What Holds Greater Value Than Cash in San Francisco Real Estate? Anthropic Shares

Few things are more sought after in the Bay Area than real estate. In San Francisco, the median house price has surpassed $2 million. Last month, at least seven properties in the city were sold for $1 million above the asking price, with buyers frequently opting to pay in cash or waive contingencies to remain competitive. However, there is one asset that could be even more precious than a house, and perhaps more valuable than money itself: stock in Anthropic or OpenAI.

Recently, 160 Noe Street, an Edwardian residence in San Francisco’s thriving Duboce Triangle neighborhood, was put on the market for $2.9 million—or its equivalent in Anthropic or OpenAI shares, based on their current valuations. Rachel Swann, the listing agent, was inspired to establish these unconventional terms after encountering several Anthropic employees at an open house for another property. “These individuals have significant paper wealth, but often lack the liquidity to pursue their desires,” Swann remarks. Some of these employees anticipated receiving as much as $50 million from their Anthropic shares and inquired about using that as leverage for purchasing a home, according to Swann. “This theme emerged repeatedly.”

Swann’s listing stands out but is not unique. In April, an investment banker named Storm Duncan proposed to trade his Mill Valley home and an adjoining lot for Anthropic shares. In May, Vijay Chattha, who runs a PR agency for tech firms, listed his Healdsburg home for $2.5 million, or $2 million in Anthropic stock. “I want to sell my house, and I want to invest in Anthropic,” Chattha states. “Why not merge the two?”

Chattha’s property—a three-bedroom, three-bath residence complete with a pool and bocce court located near some of Sonoma County’s renowned wineries—also boasts coveted short-term rental status, enabling the owner to list it on platforms such as Airbnb. Only a select few properties in Healdsburg have this designation, and only about a dozen are available each year.

Chattha is providing a $500,000 discount to Anthropic employees, believing that the value of Anthropic shares will outpace any other investment. His vacation home in the wine region is the strongest bargaining chip he has to access them. “Considering Anthropic’s growth last year, it’s remarkable,” he notes, highlighting the $380 billion valuation the firm reached in February. “Now they’re valued at $965 billion. That’s a threefold increase in just three months.” He also mentioned he would consider exchanging the house for shares in Anthropic, but not OpenAI, as he prefers using Anthropic’s products.

These real estate listings appear at a time when investors are eager due to the soaring valuations of Anthropic and OpenAI, and even those deemed wealthy by Bay Area standards are experiencing FOMO regarding the fortunes that could arise from these companies entering the stock market. (On Monday, Anthropic filed for its initial public offering; OpenAI is reportedly preparing to do the same in the coming months.) Despite these companies’ unprecedented valuations, many believe their stock prices will continue to rise, creating a perception that anyone investing now could hit the jackpot.

There is substantial interest in purchasing equity in OpenAI and Anthropic on the secondary market, resulting in a whirlwind of transactions that may or may not be legitimate. Consequently, Anthropic revised its policy regarding “unauthorized Anthropic stock sales” this spring, stating that “if someone attempts to sell Anthropic shares without sufficient board approval, that transaction is invalid.” A spokesperson for Anthropic referenced this policy when asked about the potential for exchanging company shares for real estate.