Key Takeaways
- • Anthropic plans to sell 825 million shares priced between $70 and $78 each, targeting up to $64.4 billion in its IPO, with Nasdaq trading under the symbol "ANT" expected to begin November 19, according to Reuters.
- • At the top of the range, Anthropic would be valued at about $1.4 trillion on a fully diluted basis and about $1 trillion non-diluted, slightly below some investor expectations.
- • A separate $26 billion private placement with cornerstone investors including Alphabet's Google, Nvidia and Advanced Micro Devices, combined with other cornerstone commitments from Broadcom, Micron, Microsoft and TSMC, could bring total offering proceeds to as much as $90.4 billion.
- • Anthropic's run-rate revenue was roughly $81 billion as of October 31, up $10 billion from September 30, per the IPO filing, against nearly $900 billion in computing commitments.
- • The offering is a key test of investor appetite for AI valuations amid a recent tech selloff and concerns over spending returns, with Goldman Sachs and Morgan Stanley leading underwriting.
Summary
Anthropic, the creator of the Claude chatbot, is pressing ahead with an initial public offering that would value the company at up to $1.4 trillion on a fully diluted basis, according to Reuters. The valuation sits slightly short of some investors' expectations and is viewed as a key test of Wall Street's appetite for AI companies following a recent selloff in technology stocks. The company and some existing shareholders are aiming to raise up to $64.4 billion by selling 825 million shares priced between $70 and $78 each. Shares are expected to begin trading on the Nasdaq on November 19 under the symbol "ANT."
Anthropic also plans to raise $26 billion through a separate private placement with cornerstone investors, including Alphabet's Google, Nvidia and Advanced Micro Devices. Additional cornerstone investments from Broadcom, Micron Technology, Microsoft and TSMC bring the total potential raise to $90.4 billion. Certain Anthropic board members and related entities are set to buy up to $303 million of shares. The preliminary terms circulated to banks on Monday, which indicated a raise of as much as $69.3 billion, were retracted, and the updated prospectus filed with the SEC contained a lower price range and reduced proceeds target.
The IPO is the most closely watched of the year since SpaceX raised $75 billion at a valuation of nearly $1.75 trillion in June. Anthropic was last valued at $965 billion in a private funding round. According to the IPO filing, the company's run-rate revenue was roughly $81 billion as of October 31, up $10 billion from September 30. However, it has nearly $900 billion in computing commitments with partners including Amazon and Google, and some of that capacity relies on financing outside the company's control. The prospectus also outlined risks, including competitors developing models faster and advances outpacing safety measures.
Investors are weighing the offering against broader concerns about whether AI spending will generate sufficient returns amid elevated interest rates and mounting debt costs. The Nasdaq fell 1.2% in afternoon trading following worse-than-forecast inflation data, while Amazon, an Anthropic investor, rose 1%. Varun Datta, founder of Truth Ventures, said that "at this valuation, much of that success is already reflected in the price." Jeff Zell of IPO Boutique argued that pricing near 20% below market expectations lets investors bid up the deal rather than facing a take-it-or-leave-it offer as with SpaceX. Investors are also watching the deal for clues on rival OpenAI, which is seeking $30 billion in what is expected to be its final private round before a potential IPO next year. Anthropic was founded in 2021 and is led by CEO Dario Amodei, with Goldman Sachs and Morgan Stanley as lead underwriters.
Anthropic also plans to raise $26 billion through a separate private placement with cornerstone investors, including Alphabet's Google, Nvidia and Advanced Micro Devices. Additional cornerstone investments from Broadcom, Micron Technology, Microsoft and TSMC bring the total potential raise to $90.4 billion. Certain Anthropic board members and related entities are set to buy up to $303 million of shares. The preliminary terms circulated to banks on Monday, which indicated a raise of as much as $69.3 billion, were retracted, and the updated prospectus filed with the SEC contained a lower price range and reduced proceeds target.
The IPO is the most closely watched of the year since SpaceX raised $75 billion at a valuation of nearly $1.75 trillion in June. Anthropic was last valued at $965 billion in a private funding round. According to the IPO filing, the company's run-rate revenue was roughly $81 billion as of October 31, up $10 billion from September 30. However, it has nearly $900 billion in computing commitments with partners including Amazon and Google, and some of that capacity relies on financing outside the company's control. The prospectus also outlined risks, including competitors developing models faster and advances outpacing safety measures.
Investors are weighing the offering against broader concerns about whether AI spending will generate sufficient returns amid elevated interest rates and mounting debt costs. The Nasdaq fell 1.2% in afternoon trading following worse-than-forecast inflation data, while Amazon, an Anthropic investor, rose 1%. Varun Datta, founder of Truth Ventures, said that "at this valuation, much of that success is already reflected in the price." Jeff Zell of IPO Boutique argued that pricing near 20% below market expectations lets investors bid up the deal rather than facing a take-it-or-leave-it offer as with SpaceX. Investors are also watching the deal for clues on rival OpenAI, which is seeking $30 billion in what is expected to be its final private round before a potential IPO next year. Anthropic was founded in 2021 and is led by CEO Dario Amodei, with Goldman Sachs and Morgan Stanley as lead underwriters.
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