Exclusive-Investors flock to Anthropic IPO but question durability of AI lead

Institutional investors are flocking to Anthropic's IPO, surpassing the enthusiasm seen during SpaceX's roadshow, according to two sources familiar with the companies' offerings. The Anthropic IPO roadshow is set to continue until next Wednesday, with the AI firm expected to determine the pricing for a $64 billion deal. Throughout the roadshow, which began on Tuesday, demand for the shares far exceeded supply, being two times oversubscribed by the end of the first day and six times oversubscribed by the end of Thursday.

In comparison, SpaceX's IPO was only two times oversubscribed by the end of its second day of roadshow.

As the roadshow progresses, investors are grappling with two fundamental questions: whether Anthropic can maintain its lead in the rapidly advancing AI industry and whether its Claude chatbot can sustain its edge beyond coding in the broader market for knowledge workers. These questions highlight the challenge of valuing a company with rapidly growing revenue but an uncertain long-term competitive position.

Investors are also unsure if the AI sector will ultimately be dominated by one or two players or allow several leading companies to thrive. Furthermore, investors are cautious about the limited information Anthropic is providing during its IPO roadshow, as some investors noted that the company had not provided detailed answers to certain questions raised.