Anthropic IPO targets $64.4 billion, with total fundraising potentially reaching $90.4 billion

Anthropic, an AI company, is preparing to go public with an initial public offering (IPO) that could raise up to $64.4 billion, according to a regulatory filing. The company plans to offer shares in a price band of $70 to $78 per share, marking a historic share sale expected to set a benchmark for the sector. Anthropic will also raise an additional $26 billion through a private placement deal with notable investors such as Alphabet’s Google, Nvidia, Advanced Micro Devices, Broadcom, Micron Technology, Microsoft, and TSMC, bringing the total potential fundraising to $90.4 billion.

This IPO comes amid a reckoning for the AI boom, as investors question whether the substantial spending and mounting debt costs will justify returns in an environment of elevated interest rates. Despite these concerns, Anthropic's growth has defied expectations, driven by heightened demand for its products, particularly its popular Claude models.

The company's third-quarter financials showed a narrowing net loss and a 47% revenue increase to $16.96 billion, though growth has slowed. Anthropic's ambitions include ambitious infrastructure costs, with nearly $900 billion in computing commitments from partners like Amazon and Alphabet’s Google. The company's IPO, led by underwriters Goldman Sachs and Morgan Stanley, is set to trade on the Nasdaq under the ticker "ANT."