Anthropic’s IPO to raise up to $64.4 billion, taking total fundraising to $90.4 billion
The latest draft prospectus says Anthropic aims to raise up to $64.4 billion through its IPO. This is less than the earlier reported target of $69.3 billion. The company expects to sell shares for between $70 and $78 each. It also plans to raise another $26 billion through a separate private deal backed by Google, Nvidia, Microsoft and other major technology companies. Together, these deals could bring its total fundraising to as much as $90.4 billion.
Anthropic's huge initial public offering (IPO) is now expected to raise up to $64.4 billion, according to the latest draft prospectus seen by Reuters on Tuesday, November 10. The artificial intelligence company is preparing to begin its campaign to attract investors.
The new fundraising target is lower than the amount shown in an earlier draft. That version said the company behind Claude could raise up to $69.3 billion by selling shares to the public.
Under the latest prospectus, Anthropic and some of its current investors plan to sell shares at an expected price of $70 to $78 each. The company also plans to raise another $26 billion through a separate private deal involving some of the world's biggest technology companies.
Together, the public share sale and the private deal could bring Anthropic's total fundraising to as much as $90.4 billion. This would make it one of the biggest fundraising efforts in the history of the technology industry.
Google, Nvidia and Microsoft among major investors
According to the draft prospectus, the $26 billion private deal will include major investors such as Alphabet's Google, Nvidia, Advanced Micro Devices (AMD), Broadcom, Micron Technology, Microsoft and Taiwan Semiconductor Manufacturing Company (TSMC).
The involvement of these major technology companies shows how closely connected money and infrastructure have become in the global AI industry.
Several of these companies do more than invest in AI businesses. They also provide the chips, computing systems and cloud services needed to build and run newer AI models.
The deal details are expected to be announced soon. Anthropic and the major investors did not immediately respond to Reuters' requests for comment.
AI company values face closer attention
The planned IPO comes at a time when investors are paying closer attention to the huge amounts of money needed to support the growth of artificial intelligence.
Anthropic was founded in 2021 by former OpenAI executives Dario Amodei and Daniela Amodei. It has become a major competitor in generative AI with its family of Claude models.
The company has grown with help from investments and infrastructure deals with companies such as Google and Amazon. However, its large computing needs and the huge amounts the industry spends on infrastructure have raised questions about whether AI businesses can make enough money to support their costs over time.
The IPO will give investors a chance to examine Anthropic's plans for growth, its possible earnings and whether it can turn its fast-growing AI business into lasting profits.
With a possible fundraising total of $90.4 billion, Anthropic's IPO is also becoming an important test of how much money investors around the world are willing to put into artificial intelligence.