San Francisco property listings pivot to Anthropic and OpenAI equity as payment
While the trend highlights the soaring valuations of Anthropic and OpenAI, legal experts warn of regulatory hurdles and escrow limitations that could render such transactions invalid.
In a market where the median house price in San Francisco exceeds $2 million and competitive buyers routinely waive contingencies or pay in cash, a new unconventional payment method has emerged: equity in artificial intelligence startups. Several real estate listings in the San Francisco Bay Area are now accepting shares in Anthropic or OpenAI as payment for property, reflecting a shift in how tech employees are attempting to capitalise on their "paper wealth."
The trend gained visibility last week when listing agent Rachel Swann offered 160 Noe Street, an Edwardian home in San Francisco’s Duboce Triangle, for $2.9 million or the equivalent value in Anthropic or OpenAI shares. Swann noted that the idea originated from conversations with Anthropic employees who possess significant equity but lack the liquidity to purchase high-value real estate. Some of these employees have expected payouts of up to $50 million from their holdings, prompting Swann to explore whether that equity could serve as leverage in a property transaction.
This is not an isolated incident. In April, investment banker Storm Duncan offered to exchange his Mill Valley home and adjacent land for Anthropic shares. More recently, Vijay Chattha listed his Healdsburg property for $2.5 million or $2 million in Anthropic stock. Chattha, who manages a public relations agency for tech firms, stated he believes Anthropic’s value will outpace other investments, citing the company’s reported valuation rise from $380 billion in February to $965 billion in subsequent fundraising. He offered a $500,000 discount to Anthropic employees to incentivise the exchange.
The listings coincide with heightened investor interest as Anthropic files paperwork for its initial public offering and OpenAI is reportedly preparing to do the same. A secondary market frenzy has developed for equity in these firms, driven by fears of missing out on potential wealth from their public debuts. However, the logistical and legal complexities of such deals remain significant. Helena Zaludova, a real estate agent representing luxury listings, described the offers as a "clever gimmick," noting that escrow companies generally cannot handle securities, particularly those that are not publicly traded.
Complicating matters further, Anthropic has updated its policy to invalidate any stock sales not approved by its board. A spokesperson for the company pointed to this policy when queried about the real estate exchanges, indicating that unauthorized transactions are not recognised. While some agents have heard of unconventional exchanges involving Bitcoin or property swaps, the lack of clear pathways for board approval and escrow processing suggests these listings may serve more as marketing tools than viable transaction models.
Despite the hurdles, the strategy has generated substantial media attention. Swann reported sustained interest from agents representing clients at Anthropic and OpenAI, with some inquiries focusing on buying stock rather than the property itself. Chattha admitted he was unsure how the transaction would work, having asked Claude, Anthropic’s AI agent, for guidance, but emphasised his desire to test the market and access equity in a company whose products he prefers.
