Anthropic targets US$1 trillion IPO valuation in test of Wall Street’s AI fervor

San Francisco, California - Anthropic's much-anticipated initial public offering (IPO) is set to raise as much as US$64.4 billion, putting the company on a path towards a potential valuation of up to US$1.02 trillion. This landmark event is testing Wall Street's confidence in the AI boom against concerns over associated risks. The company is targeting an indicative price band of US$70 to US$78 per share for the sale.

Anthropic has also secured a separate private placement deal worth US$26 billion with notable investors such as Alphabet’s Google, Nvidia, Advanced Micro Devices, Broadcom, Micron Technology, Microsoft, and Taiwan Semiconductor Manufacturing Company (TSMC). This combined offering is expected to raise up to US$90.4 billion in total.

The tech-heavy Nasdaq experienced its steepest one-day decline in 19 months on November 5th, erasing trillions in market value amid heightened scrutiny over AI and potential regulatory hurdles. Despite these concerns, Anthropic's growth has been impressive, driven by the popularity of its Claude models. The company's third-quarter net loss narrowed as revenue surged 47% to US$16.96 billion, though growth slowed compared to the previous quarter.

In its IPO filing, Anthropic outlined significant risks, including the possibility of competitors developing AI models faster and the challenge of keeping up with safety and security measures. The prospectus also highlighted the company's substantial computing commitments, amounting to nearly US$900 billion, with key partners including Amazon and Alphabet’s Google.

Anthropic's IPO follows Elon Musk's SpaceX, which raised US$75 billion in the largest IPO in June, achieving a valuation of nearly US$1.75 trillion. Anthropic, founded in 2021 by researchers who departed from OpenAI due to disagreements over governance and AI safety, is currently led by CEO Dario Amodei. The company's shares will trade on the Nasdaq under the ticker "ANT" following the IPO, which is scheduled to conclude in the latter half of 2026. Goldman Sachs and Morgan Stanley are leading the investment bank syndicate for the offering.