Anthropic eyes $1.4 tril. IPO valuation in test of Wall Street's AI fervor

Anthropic, the AI lab renowned for its Claude chatbot, is on the verge of a monumental IPO that could grant it a valuation of up to $1.4 trillion. This valuation, slightly below investors' expectations, due to a perceived cooling of AI enthusiasm, will put Anthropic's fortunes to the test for Wall Street. The company plans to raise a staggering $64.4 billion through the IPO by selling 825 million shares at prices ranging from $70 to $78 each.

In addition to the IPO, Anthropic will also secure $26 billion through a private placement with prominent investors such as Alphabet's Google, Nvidia, and Advanced Micro Devices. The roadshow for this share sale is expected to set a benchmark for the sector.

If the IPO's price reaches the upper end of the range, Anthropic would be valued at approximately $1.4 trillion on a fully diluted basis, encompassing securities like stock options and restricted stock. On a non-diluted basis, excluding those securities, the company's market value would amount to around $1 trillion.

By aiming for a valuation roughly 20 percent lower than market expectations, Anthropic creates an opportunity for investors to bid up the IPO price.