Anthropic is seeking a valuation of about $1.4 trillion as it prepares to go public. The company behind Claude hopes to raise up to $64.4 billion, according to a filing with the U.S. SEC. The listing will give public investors their first chance to see how much a major AI company is worth.
The numbers behind the offering
Anthropic and some of its existing investors are selling shares for $70 to $78 each, according to the SEC filing. The company is offering 801.4 million shares, while its investors are selling another 23.6 million. This brings the total number of shares on offer to 825 million.
Anthropic is also raising $26 billion from private investors. This could take its total fundraising to $90.4 billion, according to Reuters. The deal would rank among the biggest fundraising efforts in the tech industry.
Anthropic has changed its fundraising target several times. An earlier draft showed that the company planned to raise up to $69.3 billion from the public sale. The company, however, later lowered the target to $64.4 billion. The Globe and Mail added that the company shared the deal terms with investment banks before withdrawing them late on November 9.
Companies involved in Anthropic’s IPO
Major tech companies are backing Anthropic’s private share sale. Google’s parent Alphabet, Nvidia and Advanced Micro Devices (AMD) are a part of the AI giant’s financial backers. These also include Broadcom, Micron Technology, Microsoft and Taiwan Semiconductor Manufacturing Company (TSMC).
Goldman Sachs and Morgan Stanley will be leading the banks in charge of the offering. Once the IPO is complete, Anthropic’s shares will trade on the Nasdaq under the ticker “ANT.”
Growth outruns doubts
Anthropic’s revenue grew 47% to $16.96 billion in the third quarter. This was slower than the 144% growth recorded in the previous quarter. The company’s net loss also saw a drop.
The Financial Times reported that Anthropic’s annual revenue rate reached $81 billion in October, up $10 billion from September. The company said more people are using Claude, including its tools for health care, finance and legal services.
Anthropic is also facing huge costs. The company has about $900 billion in computing deals with Amazon, Google and other partners. Some of this spending is dependent on external funding.
In its prospectus, Anthropic said it hopes to “bring forth an age of miracles” but also warned that AI could pose serious risks to humanity.
Investors more cautious about AI
The timing may also work against Anthropic. The Nasdaq recorded its biggest one-day fall in 19 months on November 5. The decline followed growing concerns that Democrats’ gains in the US midterm elections could lead to tighter rules for the construction of data centers. The Financial Times noted that Democrats have pledged to slow data center expansion.
Anthropic’s target value is still below SpaceX’s. Elon Musk’s company went public in June with a $1.78 trillion valuation while raising $86 billion. Anthropic’s $1.4 trillion target is also lower than earlier estimates of nearly $2 trillion. The company was last valued at $965 billion in a private funding round in May.
Anthropic’s backers are hoping more investors will buy its shares, the Financial Times reported. These include index funds and large investment firms that do not yet own the stock but may have to buy it once Anthropic joins major market indexes.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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