Anthropic (ANTH.PVT) is targeting a valuation of around $1.4 trillion in its highly anticipated IPO, paving the way for one of the biggest public market debuts during the AI boom.
The AI developer said in an updated filing Tuesday that it plans to sell 825 million shares at $70 to $78 each. At the high end of that range, the IPO would raise up to $64.35 billion in proceeds. On a fully diluted basis, which includes employee stock options and other securities, the cutting-edge AI lab could be valued at between about $1.3 trillion and $1.45 trillion.
That would be a substantial increase from the $965 billion valuation Anthropic announced in a May funding round, but would be well below Wall Street’s recent estimates of $2 trillion in early October.
Learn more: Everything you need to know ahead of Anthropic’s IPO
In addition to the public offering, Anthropic is raising an additional $26 billion from the biggest tech heavyweights, including Nvidia (NVDA), Microsoft (MSFT), Google (GOOGL), TSMC (TSM), Broadcom (AVGO), AMD (AMD) and Micron (MU). These companies buy non-voting Class N shares at the same price that public investors will pay. Since this is a private deal, these tech giants won’t face the standard six-month lock-up window that typically prevents insiders from selling right after their debut.
Anthropic plans to list on Nasdaq under the symbol “ANT.” The stock is expected to begin trading on Thursday, November 19 or Friday, November 20 next week, according to the Wall Street Journal.
The IPO comes as investors have become more cautious about the huge valuations attached to AI companies. Anthropic will also debut amid growing political resistance to building data centers and other infrastructure needed to support AI,
The company’s public debut would follow SpaceX’s (SPCX) record-breaking IPO earlier this year. SpaceX raised $85.7 billion in its offering and the company now has a market cap of $1.9 trillion.
Anthropic CEO Dario Amodei launched the company in 2021 alongside a group of former OpenAI researchers. The startup has since become a cutting-edge AI lab and a competitor to OpenAI.
Anthropic recently revealed that its revenue increased 1,206% to $33.2 billion in the first nine months of the year. The company also noted a staggering global spending of $895.4 billionwhich he says is primarily related to compute and infrastructure.
But the AI growth story was put to the test last week as investors weighed a Democratic victory in Congress against the impact of building out AI data centers. The market turmoil has prompted potential buyers to discuss a reduction in Anthropic’s valuation to a range between $1.2 trillion and $1.3 trillion, with some considering as low as $1.1 trillion, according to Bloomberg.
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