Anthropic's IPO price range implies valuation that could reach $1.404 trillion

Anthropic is pressing ahead with its IPO even as AI-investment sentiment cools. The Claude maker said in an updated filing Tuesday that it will offer 825 million Class A shares at $70 to $78 each, a sale expected to raise $57.75 billion to $64.35 billion and value the company at up to $1.404 trillion on a fully diluted basis if shares price at the top of that range — up sharply from the $965 billion valuation it reached in a May fundraise, though well under the roughly $2 trillion figure Anthropic had reportedly been chasing just a couple of months earlier.

Anthropic also struck a separate deal to sell AMD, Broadcom, Google, Micron, Microsoft, Nvidia and TSMC a combined $26 billion of non-voting Class N shares at the IPO price, with Google and Nvidia each contributing $10 billion. Including that sale, Anthropic expects net proceeds of $84.6 billion to $93.7 billion. Goldman Sachs and Morgan Stanley, the underwriters, can purchase as many as 123.75 million additional shares at that same price if the offering is upsized. Trading is expected to begin on the Nasdaq under the ticker “ANT” close to November 19, according to CNBC, with up to 20% of the offering set aside for retail investors.

The updated filing also shows Anthropic’s run-rate revenue climbing to $81 billion as of the end of October — roughly $10 billion more than it reported for September. Anthropic posted $17 billion in third-quarter revenue and $33.2 billion across the first nine months of the year, against a nine-month net loss of $104 billion; compute and infrastructure commitments reached $900.9 billion, and the company reported close to $132 billion on hand in cash and short-term investments.

The IPO comes as Anthropic’s biggest rival, OpenAI, saw its own valuation reportedly hit $1.25 trillion last week on the back of an $11 billion raise — a sum that fell well short of the $20 billion OpenAI had initially sought, covering only about half of it.

Why it matters

A valuation that could reach up to $1.404 trillion, alongside a $104 billion nine-month net loss, shows how much investors are still willing to pay for Anthropic’s revenue growth. That figure, measured against OpenAI’s own reportedly $1.25 trillion valuation from last week, keeps the two labs locked in a direct contest for AI investors’ money.