Making Early Bets On New AI Companies

You might have heard of Anthropic, one of the big names in artificial intelligence, known for its AI chatbot Claude. While big tech giants like Google and Microsoft are already publicly traded, many leading AI innovators are still privately owned. This means average investors can't just buy shares in them on the stock market.

However, a company called Tradr ETFs has filed with US regulators to create new investment products. These are special funds, known as Exchange Traded Funds (ETFs), that would let people bet on how Anthropic's value changes. What makes these unique is they're 'leveraged', meaning they aim to magnify returns (or losses) by two times compared to the actual company's performance, and they're designed for daily trading. Some would bet the company's value goes up, others would bet it goes down.

This kind of investment is usually for very experienced traders, as leveraged funds are quite risky. They're designed to give amplified exposure to a company's stock, even before it makes its public debut. Think of it like trying to guess how a sports team will perform before the season even starts, but with real money and double the stakes.

For most everyday Aussies, especially those just starting to think about investing in AI, these types of funds are probably too complicated and risky. They're definitely not for beginners or those looking for a steady, long-term investment. They highlight the excitement and anticipation around AI companies, but also the sophisticated — and often volatile — ways some investors are trying to capitalise on this new technology.