Anthropic bankers prepare to increase IPO valuation to $1.5tn or more

Anthropic, the five-year-old AI company, plans to go public on November 18, 2023, with a share price range of $70 to $78, translating to a valuation between $1.26 trillion and $1.41 trillion. This is significantly lower than the $2 trillion projection analysts had anticipated, preventing Anthropic from claiming the title of the largest IPO of all time currently held by SpaceX.

Market experts, however, believe Anthropic's conservative pricing is a smart strategy, allowing the company to manage expectations while maximizing potential upside if trading sees a significant boost. The company's compute-related spending amounts to nearly a trillion dollars, making it a critical area of risk. Anthropic raised an expected $94 billion in its IPO, vital for securing compute and maintaining its position in the AI race.

Despite slowing third-quarter revenue growth, Anthropic's IPO could generate positive press and investor enthusiasm, especially if the stock price rises after the public offering.