Anthropic eyes $1.4 trillion valuation in blockbuster IPO, targets up to $90.4 billion in fundraising

Anthropic is targeting a fully diluted valuation of up to $1.4 trillion in its proposed initial public offering (IPO), setting the stage for one of the largest stock market listings as the artificial intelligence company prepares to tap public investors. The Claude maker has launched its IPO roadshow, offering 825 million shares in a price band of $70-78 apiece. The company is seeking to raise up to $64.35 billion through the public offering, according to its regulatory filing with the US Securities and Exchange Commission (SEC).

The proposed issue comprises 801.35 million shares being issued by Anthropic and another 23.65 million shares offered by existing shareholders. At the upper end of the price band, the company could generate gross proceeds of approximately $62.51 billion from its primary share sale, before expenses, according to reports.

Anthropic is also looking to raise an additional $26 billion through a separate private placement involving cornerstone investors, including Alphabet’s Google, Nvidia and Advanced Micro Devices (AMD). Combined, the IPO and private placement could take the total fundraising to as much as $90.4 billion.

The targeted $1.4 trillion valuation is calculated on a fully diluted basis, factoring in securities such as stock options and restricted shares. At the top end of the IPO price range, Anthropic’s market capitalisation would be approximately $1 trillion on a non-diluted basis, Reuters reported.

The valuation target, however, is lower than the $2 trillion figure that some investors had previously discussed. Expectations have moderated amid the company’s sizeable infrastructure commitments and volatility in AI-related stocks.

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AI ambitions meet mounting infrastructure costsAnthropic’s proposed listing comes at a time when investors are increasingly scrutinising the economics of artificial intelligence, particularly the enormous computing investments required to develop, train and operate advanced AI models.

The company has nearly $900 billion in computing commitments with infrastructure partners, including Amazon and Alphabet’s Google. These commitments highlight the scale of resources required to sustain its expansion and the importance of securing future computing capacity.

Despite the substantial infrastructure requirements, Anthropic has reported rapid revenue growth, supported by increasing demand for its Claude family of AI models.

According to its IPO filing, the company’s run-rate revenue stood at approximately $81 billion as of October 31, up from the previous month. Revenue increased 47% sequentially to $16.96 billion in the third quarter, although the pace of growth moderated from the 144% increase recorded in the preceding quarter.

Anthropic attributed the expansion to growing adoption of Claude, including specialised products designed for industries such as healthcare, financial services and legal services.

However, the company remains loss-making, reflecting the significant expenditure involved in developing and scaling artificial intelligence systems.

IPO document highlights competition, AI safety risks

Anthropic’s regulatory filing has also laid out several risks that could affect its business, ranging from intensifying competition to the challenges of ensuring the safe deployment of increasingly capable AI systems.

The company warned that competitors could gain an advantage by developing AI models at a faster pace. It also flagged the risk that advances in artificial intelligence could outstrip its ability to implement adequate safety and security measures.

Regulatory hurdles and increased government oversight could pose further challenges, particularly as Anthropic expands the infrastructure required to support its operations.

The disclosures come amid growing concerns about AI agents operating beyond their intended environments and the potential misuse of increasingly sophisticated AI tools to breach protected networks.

IPO could set new fundraising benchmark

Anthropic’s proposed offering could rank among the largest IPOs in market history, following SpaceX’s $75 billion stock market debut in June at a valuation of nearly $1.75 trillion. The figure excludes additional shares purchased by underwriters through the greenshoe option.

The proposed listing has attracted interest from several major technology companies and investors. Apart from Google, Nvidia and AMD, broader investment commitments include companies such as Broadcom, Micron Technology, Microsoft and Taiwan Semiconductor Manufacturing Company (TSMC).

Certain members of Anthropic’s board and entities affiliated with them have also expressed interest in purchasing up to $303 million worth of shares in the offering.

Anthropic has applied to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol ANT.

The offering will be made through a prospectus, with preliminary copies available through Goldman Sachs and Morgan Stanley, among the underwriters managing the transaction.

The registration statement covering the securities has been filed with the SEC but has not yet become effective.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here