Anthropic’s blockbuster IPO just got harder after Jensen Huang’s dramatic exit as Nvidia CEO

Anthropic is preparing for one of the most anticipated IPOs in history, but its launch has been thrown into uncertainty following the unexpected resignation of Nvidia CEO and co-founder Jensen Huang on Thursday. Huang's departure, following reports of extramarital affairs, comes at a critical time for the AI lab as it is expected to list on Wednesday or Thursday next week, just days after Nvidia releases its quarterly earnings report—the company's first without Huang at the helm.

The timing of Huang's exit has put pressure on Anthropic's listing, which was already seen as a stress test for investors' appetite for AI. Anthropic is expected to list alongside Nvidia, with the chipmaker agreeing to purchase approximately $10 billion of shares in a $26 billion private placement alongside the IPO. The two companies share a close partnership, with Anthropic committing to tens of billions of dollars to secure access to Nvidia's most advanced chips.

While analysts believe that Huang's departure will not derail Anthropic's IPO, they do foresee potential challenges for the broader AI narrative once the company goes public. Jay Goldberg, an analyst at Seaport Research Partners, stated that he does not expect the IPO to be negatively affected by Huang's exit, but warned that the turmoil at Nvidia could create a headwind for Anthropic once it reports its first quarterly results.

Karl Alomar, a partner at venture firm M13, echoed these sentiments, stating that Anthropic's fundamentals remain strong and that the company is less dependent on Nvidia than some of its rivals. However, the recent troubles at Nvidia and questions surrounding Huang's judgment could lead to increased scrutiny of Anthropic's ties to the chipmaker and its customers associated with Nvidia.