What’s Worth More Than Cash in San Francisco Real Estate? Anthropic Stock

Few things are more valuable in the Bay Area than real estate. In San Francisco, the median house price is now over $2 million. Last month, at least seven houses in the city sold for $1 million over the asking price, and buyers regularly offer to pay in cash or waive contingencies to stay competitive.

Yet there is one thing that remains even more valuable than a house, and possibly more valuable than money itself: stock in Anthropic or OpenAI. Last week, 160 Noe Street, an Edwardian home in San Francisco's desirable Duboce Triangle neighborhood, was listed for sale at $2.9 million—or the equivalent amount in Anthropic or OpenAI shares, as based on those companies' current valuations. Rachel Swann, the listing agent, says she was inspired to set these unusual terms after meeting several Anthropic employees at an open house for a different property.

"These people have a lot of paper wealth, but they don't always have the liquidity to do things they want," Swann says. Some of these employees were expecting to come into as much as $50 million from their Anthropic shares, and wondered if they could use that as leverage to buy a house, according to Swann. "This kept coming up over and over again." Swann's listing is unconventional, but not singular.

In April, an investment banker named Storm Duncan offered to exchange his Mill Valley home and an adjacent parcel of land for Anthropic shares. And in May, Vijay Chattha, who owns an agency that does PR for tech companies, 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 says.

"Why not combine the two? Chattha's house—a three bed, three bath with a pool and a bocce court in a part of Sonoma County that abuts some of the region's most famous wineries—also comes with coveted short-term rental status, allowing the owner to list it on platforms like Airbnb. Only a handful of properties in Healdsburg come with that status, and only about a dozen come up for sale in a given year.

Chattha is offering a $500,000 discount to Anthropic employees because he believes the value of Anthropic shares will grow faster than any other investment, and his vacation home in wine country is the best bargaining chip he has to try to access them. "If you look at Anthropic's growth last year, it's insane," he says, noting the $380 billion valuation the company claimed in February. "Now they're raising at $965 billion.

That's three X in like three months." He added that he was open to exchanging the house for shares in Anthropic, but not OpenAI, because he prefers using Anthropic's products. The real estate listings come at a time when investors are salivating at the record-high valuations of Anthropic and OpenAI, and even those considered wealthy by Bay Area standards are feeling FOMO about the affluence that could come from these companies' debuts on the stock market. (On Monday, Anthropic submitted paperwork for its initial public offering; OpenAI is also reportedly preparing to file in the coming months.) Despite the unprecedented valuations of these companies, many people believe their stock prices will only go up, and that anyone who gets a piece now could win the jackpot.