Wealth managers are slashing fees and expanding teams in Silicon Valley to court employees at Open AI and Anthropic ahead of their anticipated IPOs. Morgan Stanley's wealth management division took in more than $74bn in net new assets last quarter, largely driven by SpaceX's recent listing. As these AI giants prepare to go public within the next 12 months, they're expected to create a new wave of affluent clients. Open AI distributed nearly $11bn in equity compensation in 2024 and 2025, ranking it among the top U.S. companies for employee equity pay. Traditional wealth management approaches are being rethought; clients now prefer tailored strategies over standard sales processes. Firms like Choreo have agreed to management fees below 0.5% for collective groups of SpaceX employees, compared to the typical 1% charged by many advisors. Mariner Wealth Advisors and Citi are also adapting, offering separate pricing for pre-IPO tax planning and partnering directly with employers. Advisers are waiving account minimums and focusing on long-term value rather than immediate assets. The competition has intensified hiring in the Bay Area, with Mercer Advisors expanding rapidly. These tech workers seek family-office-style services such as philanthropy advice and venture funding support, though they show less interest in luxury lifestyle perks.

Wealth managers are adapting their fee structures and service models to attract employees at Open AI and Anthropic before their expected IPOs create a new class of paper millionaires. Traditional 1% management fees are being reduced, with some firms charging less than 0.5% for collective client groups. Morgan Stanley capitalized on SpaceX's recent IPO, taking in $74bn in net new assets. Open AI alone distributed nearly $11bn in equity pay in 2024 and 2025, positioning it as a major player in employee compensation.

Firms like Choreo, Mariner Wealth Advisors, and Citi are restructuring their offerings to meet the unique needs of AI-driven wealth. They're providing pre-IPO tax planning, waiving account minimums, and offering family-office-style services. The focus is shifting from luxury lifestyle management to strategic financial planning, reflecting the values of this tech-savvy generation.

The race for these emerging clients has triggered aggressive hiring in San Francisco, where Bay Area expansion outpaces other regions. Wealth managers are tailoring their approaches to win over employees who prioritize long-term financial strategy over traditional concierge services.