Anthropic targets valuation of up to $1.4tn in stock market flotation

Anthropic, the developer of the Claude chatbot, is targeting a valuation of up to $1.4tn in its upcoming stock market flotation, according to a US regulatory filing. This is lower than the initially anticipated $2tn IPO value, which had cooled amid investor concerns over the longevity of the AI boom. The California-based company plans to raise up to $64.4bn by selling 825m shares at a price of up to $78 per share, giving it a valuation of up to $1.4tn.

Additionally, Anthropic will raise a further $26bn through a private placement deal with prominent investors such as Alphabet, the Google parent, and Nvidia. Trading in Anthropic shares may commence as soon as next week.

The midterm elections in the US, which saw victories for datacenter opponents, have contributed to investor jitters and skepticism about the financial sustainability of AI spending. Analyst Brian Hopkins from Forrester Research stated that the elections provided investors with an opportunity to correct valuations that were beginning to raise concerns due to worries about the economic viability of AI infrastructure development.

The election results added fuel to these concerns, leading to a lower valuation for Anthropic from the initially projected $2tn.

Elon Musk's SpaceX holds the record for the largest ever stock market listing, with a valuation of $1.78tn, which is now just under $2tn. Nvidia, a key player in the AI industry, is also under investigation in China, but this has not yet impacted its share prices. As of 31 October, Anthropic's annual revenue stood at $81bn, a significant increase from the previous month's figure.