Anthropic's IPO prospectus details steep losses, existential risks

Anthropic, an AI lab, believes artificial intelligence will have a greater impact on the global economy than previous technological revolutions like industrialization, electricity and the internet, according to its IPO prospectus seen by Reuters. The company, which could be valued at over $2 trillion in its IPO, plans to allocate $518 billion towards cloud computing and infrastructure expenses in the future, as stated in the prospectus.

European tech shares experienced a 2.4% increase, while the U.S. chip index rose by 1.5%. Analysts have expressed their opinions on Anthropic's financial projections. Susannah Streeter, chief investment strategist at Wealth Club, believes the AI's potential to reshape economies has boosted demand for European tech stocks. Despite concerns about the enormous expenses, the market remains confident in AI-focused investments.

Michael Field, chief equity strategist at Morningstar, notes that Anthropic's 12-fold revenue growth in 2025 is remarkable. The $2 trillion valuation, when broken down as a multiple of sales, appears more reasonable than the recent SpaceX IPO. However, the company's losses remain a concern, particularly given its rapid growth rate and size compared to current revenues.

Dan Coatsworth, head of markets at AJ Bell, highlights that massive spending is typically a cause for concern among investors. However, Anthropic's impressive revenue growth, up 12-fold in 2025, has captured market attention. Kathleen Brooks, research director at XTB Platform, points out that the company's planning to spend heavily on capital expenditures indicates that the capex cycle is not over yet. This is beneficial for semiconductor and AI infrastructure companies.

Newton Jones, wealth manager at Zizmer-Jones Private Wealth Management Group, expresses skepticism about the valuations, mentioning the challenge of comprehending companies that lose billions, require substantial capital expenditure and have equity values exceeding $2 trillion. He believes that the optimism surrounding the potential for positive growth in the sector is driving these valuations.