The short-term risks are real. Former Defense Secretary Donald Rumsfeld used to talk about the known knowns, the known unknowns and the unknown unknowns. The first category is what we know to be true: from America’s aging workforce and rising debt to the transformative potential of AI. The last includes those black-swan events that come out of left field and test a company’s resilience, from war to pandemics. But the middle category is where investors play the odds when it comes to risks. They know that the AI boom is being financed on borrowed money, with circular financing deals that only add to the fog. They know the buildout is expensive and could take decades to pay off; that wild swings in revenue estimates and reports of rogue AI are red flags. And companies like CoreWeave can’t rack up $52 billion in liabilities without a clear path to pay it back. A good long-term bet can be derailed by the reality of right now. As one fund manager put it: “The costs of AI will come down and adoption will go up. We just don’t know when.”

Public and private markets are different. Private investors can sometimes trade their shares, but the market is less liquid, with the payoff coming when a company is sold, taken public, or raises a new round of funding. The wait times for those exits are getting longer, from the 33,575 unsold PE-backed firms that PitchBook reported as of June 30—more than double a decade earlier—to VC funding rounds that now stretch to Series G. (Bring on H, I and J!) The best deals go to a few firms, with others given a sliver at frothy valuations or locked out until an IPO. And investor panic plays out differently. As Forge Global CEO Kelly Rodrigues recently told me, the falling prices and other fears that spur public-market trading tend to slow activity in his secondary marketplace as “sellers don’t want to mark down assets and buyers wait for discounts.”

Consumer sentiment matters. The American consumer, who accounts for about 70% of GDP, continues to buy stuff, but many are stressed by energy prices, wage stagnation, rising interest rates, and an affordability crisis in everything from health care to housing. Most Americans don’t want more data centers and think AI is developing too fast. They’re worried about their jobs, don’t trust AI leaders, and think the playing field is unfair. And they’re about to vote in the midterms.

Anthropic is the test. The Anthropic IPO could be a barometer for sentiment across public and private markets. Anthropic has set up a public benefit fund for 5% of the shares and just hired a Harvard astrophysicist to the trust that controls its board. CEO Dario Amodei has to convince the public that his company is a good buy and he’s a good guy. A tepid debut wouldn’t just hurt Anthropic and its backers, it could set back other AI companies hoping to raise capital.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

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The markets

S&P 500 futures are down 1.10% this morning. The last session closed up 0.58%. The STOXX Europe 600 was down 1.09% in early trading. The U.K.’s FTSE 100 was down 0.60% in early trading. Japan’s Nikkei 225 was down 2.65%. South Korea’s KOSPI was down 3.52%. China’s CSI 300 was down 1.84%. Hong Kong’s Hang Seng was down 3.03%. India’s NIFTY 50 was down 0.68%. Bitcoin is down at $82k.

Around the watercooler

Zuckerberg told Meta directors he might leave California, where he could lose billions to a wealth tax. Meta answered with a new class of stock by Amanda Gerut

Amazon abandons $427 million GW campus data center plan and pledges land donations worth $65 million instead by Joshua Hong

GM simulated 300,000 EV battery designs—using 34,000 years of computer time—before building a single cell. Now comes the physical part by Nick Lichtenberg

‘You’re no longer an influencer … you’re a cofounder’: MrBeast’s business resembles a Fortune 500 holding company, investor Steven Bartlett says by Sasha Rogelberg

America’s national debt plan is ‘clearly not in order,’ says Ken Griffin. He believes part of the problem is Europeans who ‘don’t want to go to work’ by Eleanor Pringle

CEO Daily is curated and edited by Joseph Abrams, Jason Ma, Claire Zillman, and Lee Clifford.