Anthropic IPO values Claude developer at $1.4 trillion — will it be a test on Wall Street?
Kyiv • UNN
Anthropic plans to raise up to $64.4 billion through an IPO, valuing the company at $1.4 trillion. Trading on Nasdaq is expected on November 19.
The highly anticipated initial public offering (IPO) of Anthropic — the developer of the Claude chatbot — values the company at up to $1.4 trillion. This figure is somewhat lower than some investors had expected and will be an important test of Wall Street’s faith in the artificial intelligence (AI) boom — a phenomenon to which Wall Street itself contributed, UNN reports, citing Reuters.
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The company is beginning a series of meetings with investors (a roadshow) as part of a share sale that is expected to set a benchmark for the entire sector. This comes after years of excitement that triggered a massive influx of capital into AI companies and pushed the U.S. stock market to record highs.
Anthropic’s owners are continuing to move forward despite the recent sell-off in technology stocks. Investors are increasingly questioning whether profits from the AI boom can justify the enormous spending and rising debt-servicing costs amid high interest rates.
The AI developer and some of its current shareholders plan to raise up to $64.4 billion through the IPO by selling 825 million shares at a price of $70 to $78 each. Trading in the shares on the Nasdaq exchange is expected to begin on November 19 under the ticker "ANT."
In addition, Anthropic will raise $26 billion through a separate private placement deal with key investors. They include Google (Alphabet’s company), Nvidia (whose CEO is currently the subject of an investigation over an affair with an alleged Chinese spy), and Advanced Micro Devices (AMD).
This IPO has become the most anticipated event of the year — after the listing of Elon Musk’s SpaceX, which raised $75 billion in June at a valuation of nearly $1.75 trillion.
The Nasdaq index, which includes many technology companies, fell 1.2% during the day’s trading amid worse-than-expected inflation data. Meanwhile, shares of Amazon — one of Anthropic’s investors — rose 1%, outperforming other technology giants.
Investors are voicing concerns about the sustainability of the investment cycle, particularly how quickly companies will be able to turn their investments into actual revenue. At the upper end of the price range, Anthropic is valued at approximately $1.4 trillion (on a fully diluted basis — that is, including securities such as stock options and restricted shares). Excluding dilution — that is, excluding these securities — Anthropic’s market value would be about $1 trillion.
"Anthropic could become an extraordinarily successful company, but at this valuation, a significant portion of that success is already priced in," said Varun Datta, a venture investor and founder of Truth Ventures.
On Tuesday, Anthropic filed an updated prospectus. According to emails reviewed by Reuters, details of the initial public offering (IPO) were briefly sent to investment banks late Monday evening before being withdrawn.
Under the preliminary terms, Anthropic could have raised up to $69.3 billion in the IPO. However, the terms in the updated prospectus filed with the U.S. Securities and Exchange Commission (SEC) were different: the price range was lowered, and the target amount to be raised was reduced.
"Aiming for a valuation nearly 20% below ‘market expectations’ gives investors an opportunity to raise the price during the offering. This is better than a situation in which a firm offers a firm ‘take-it-or-leave-it’ option — the approach SpaceX used at one point," explained Jeff Zell, a senior analyst at IPO Boutique.