Anthropic targets up to $1.4 trillion valuation in major IPO next week

Anthropic, the company behind the Claude AI chatbot, is preparing for a significant initial public offering (IPO) next week, aiming for a valuation of up to $1.4 trillion, Al Jazeera reported.

The company intends to offer 825 million shares priced between $70 and $78, potentially raising as much as $64.4 billion, according to its filing with the United States Securities and Exchange Commission (SEC).

Anthropic has also secured $26 billion through a private placement supported by major tech firms including Google, Nvidia, Microsoft, and AMD, as noted by Al Jazeera.

The valuation target is lower than earlier estimates that suggested a $1.5 trillion to $2 trillion valuation, reflecting growing investor caution about AI companies' profitability and infrastructure costs, The Guardian reported.

Despite these concerns, Anthropic has experienced rapid growth, with revenues rising from $1.4 billion to $17 billion year-over-year in the third quarter, and the company expects to generate around $81 billion in annual revenue, according to Al Jazeera.

The IPO is being closely watched as a key indicator of investor confidence in the AI sector and the sustainability of its recent market gains.