Anthropic sets a $1.4 trillion IPO target, but bankers may already be aiming higher
Anthropic set a proposed IPO valuation of up to roughly $1.4 trillion, below earlier reported expectations, but strong investor demand may already be pushing it higher.
Key points
- Anthropic’s bankers are mulling whether to raise the AI lab’s IPO price, betting on bumper demand that could transform the fortunes of its founders and rivals alike.
- Dan Ives, partner and senior managing director at Yorkville Ives & Co., wrote in a Tuesday note that the deal sets up a debate over “margin against growth,” with the stock likely to trade on whether Anthropic’s second-quarter operating profit or its third-quarter loss reflects its true run rate.
- Separately, Google, Nvidia, AMD, Broadcom, Micron, Microsoft and TSMC Partners, an affiliate of Taiwan Semiconductor Manufacturing, have agreed to purchase a combined $26 billion of Anthropic’s nonvoting Class N common stock through a private placement immediately following the IPO, according to the filing.
The potential increase, reported by the Financial Times, would up the firm’s valuation to $1.5 trillion, with Anthropic aiming to use additional funds to pay for compute spending.
Now, Anthropic’s bankers are considering pricing shares above the filed range, which could lift the valuation to $1.5 trillion or more, the Financial Times reported.
Additional details
- The IPO would leave its seven founders each with $18 billion stakes, and also looks set to benefit Big Tech firms Alphabet and Amazon, both of which invested in Anthropic and could eventually hold 27% of the company, The Information noted.
- “Given the volatility and nervousness across the tech trade over the past week, we believe pricing at roughly $1 trillion, with the option to move toward $1.2 trillion if the book allows, is the right move,” Ives wrote.
- Rival frontier AI lab OpenAI, meanwhile, reportedly told investors its revenue grew around 50% quarter-on-quarter to $10 billion, but operating losses also increased.
- CFO Krishna Rao, who joined Anthropic in 2024, is not selling any shares in the IPO.
- Anthropic, which plans to list on the Nasdaq under the ticker symbol ANT, launched its roadshow on Tuesday, and the deal is expected to price on Nov.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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