Claude maker Anthropic eyes $1.3tn valuation in November IPO
Anthropic sets share price at $70-$78 to raise up to $64bn in November, valuing the AI firm up to $1.3tn despite existential warnings.
Stock photo for illustration only, not from the actual event
- Anthropic plans to price its shares between $70 and $78 each for its upcoming November IPO.
- The company aims to raise up to $64bn, targeting a valuation between $1.1tn and $1.3tn.
- Revenues for the six months ending June surged to $16.2bn, alongside a rise in pre-tax losses.
Artificial intelligence company Anthropic is set to debut on the stock market this month, offering shares priced between $70 and $78 each to raise up to $64bn. The offering is expected to value the firm between $1.1tn and $1.3tn, which remains below the $2tn prediction made by some backers during the summer, according to the Financial Times.
This massive market debut arrives during a volatile period for major technology firms. Following the US midterm elections, the Nasdaq experienced a sharp decline over concerns that a Democrat-controlled Congress might slow down artificial intelligence development and data center expansion. Broader market anxieties also persist regarding whether the billions of dollars funneled into AI will yield financial returns.
As the first fully AI-focused company to launch an initial public offering, Anthropic's market entry serves as a critical litmus test for the sector. It highlights the tension between skyrocketing capital investments and growing scrutiny over profitability and safety protocols in advanced technology development.
According to its latest financial results for the six-month period ending in June, Anthropic's revenues surged to $16.2bn, up from $1.1bn during the same timeframe last year. However, its pre-tax losses also widened significantly, jumping from $12.9bn to $80.7bn.
Founded five years ago in 2021 by siblings Dario and Daniela Amodei alongside five former OpenAI colleagues, Anthropic will list under the ticker symbol ANT on November 19. The firm first announced its flotation plans in June, paving the way for rival OpenAI, which is expected to follow with its own public listing early next year.
Stock photo for illustration only, not from the actual event
The announcement coincides with warnings from current and former staff regarding autonomous AI agents operating without sufficient safety guardrails. Anthropic has previously acknowledged that advanced systems could pose catastrophic risks to humanity if deployed without adequate oversight, security, and containment measures.
Source: BBC Business
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