Anthropic prices its IPO at up to a $1.4 trillion valuation

Anthropic sets an IPO range of $70 to $78 a share, targeting up to a $1.4T valuation.

According to an updated filing reported by CNBC and The New York Times, Anthropic will offer 825 million shares. At the high end it would net up to $64.35 billion in proceeds and be worth up to $1.405 trillion on a fully diluted basis, up from $965 billion in a May funding round. It has filed to list on the Nasdaq under the ticker ANT.

Expectations have shifted. Anthropic had been looking toward $2 trillion until recently, and shareholders told CNBC even $1.5 trillion is now in doubt. The WSJ, via TechCrunch, reports some institutional investors are pushing for a valuation below the $1.5 trillion discussed as recently as last week.

The timing matters. If the offering happens in mid-November as expected, it would come roughly five months after SpaceX's record $85.7 billion IPO. CNBC says public markets have grown skeptical of the AI trade over interest rates and debt for infrastructure, and the NYT describes a volatile moment amid fears the AI boom may not be sustainable.

The facts we checked

According to CNBC and The New York Times, citing Anthropic's amended IPO filing; earlier valuation expectations per CNBC and the Wall Street Journal (via TechCrunch)

1. Anthropic said it will offer 825 million shares at a price range of $70 to $78 per share, according to an updated filing on Tuesday.Fact · CNBC
2. At the high end of the range, Anthropic would net up to $64.35 billion in proceeds.Figure · CNBC
3. At the high end, Anthropic could be worth up to $1.405 trillion on a fully diluted basis, up from the $965 billion valuation announced in a May funding round.Figure · CNBC
4. The NYT headline says Anthropic targets a valuation of up to $1.4 trillion, and that the pricing would make it one of the biggest public listings ever.Reported · The New York Times
5. Anthropic has filed to list on the Nasdaq under the ticker "ANT."Fact · CNBC
6. Anthropic had been looking toward a $2 trillion valuation until recently; shareholders told CNBC that even $1.5 trillion is now in doubt.Reported · CNBC
7. One investor called the $1.5 trillion figure a "stretch."Quote · CNBC
8. The WSJ reported that some institutional investors are pushing for a valuation below the $1.5 trillion target discussed as recently as last week, which was itself well below the $2 trillion floated a few months ago.Reported · TechCrunch (citing The Wall Street Journal)
9. If the offering happens in mid-November as expected, it would come roughly five months after SpaceX's record IPO, which raised $85.7 billion.Reported · CNBC
10. CNBC says the public market has grown increasingly skeptical of the AI trade, on concern that rising interest rates will make debt unaffordable for companies that need it for costly infrastructure purchases.Reported · CNBC
11. The NYT describes the IPO as coming at a volatile moment amid fears that the AI boom may not be sustainable.Reported · The New York Times
12. Anthropic agreed with AMD, Broadcom, Google, Micron, Microsoft, Nvidia and TSMC to sell them $26 billion of Class N common stock in a private placement at the IPO price.Reported · CNBC
13. For the nine months ended Sept. 30, Anthropic reported $33.24 billion in revenue and a $104 billion net loss, most of it from changes in the fair value of convertible notes and derivative liabilities.Figure · CNBC

Sources

• CNBCAnthropic sets price range of $70 to $78 in upcoming IPO as AI lab marches toward Nasdaq
• The New York TimesAnthropic Targets Valuation of Up to $1.4 Trillion for Blockbuster I.P.O.
• TechCrunchAnthropic reportedly plans to move forward with IPO plans
• CNBCJim Cramer says Anthropic's IPO could make or break the AI trade. Here's why