$1.404 trillion: Anthropic sets IPO price range at $70-$78 per share to reach implied valuation, TechCrunch

IPO terms and valuation

Anthropic’s updated filing sets the expected price at $70 to $78 per share for 825 million Class A shares. The offering is projected to bring in $57.75 billion to $64.35 billion.

At the highest price, Anthropic’s fully diluted valuation could be $1.404 trillion. That would exceed the $965 billion valuation from its May fundraise, but fall short of the $2 trillion it was reportedly seeking a couple of months ago.

Private sale and proceeds

Anthropic also plans to sell $26 billion of non-voting Class N stock privately at the IPO price. Buyers named in the filing are AMD, Broadcom, Google, Micron, Microsoft, Nvidia and TSMC; Google and Nvidia are each investing $10 billion.

Including the private sale, the company estimates net proceeds of $84.6 billion to $93.7 billion. Underwriters, including Goldman Sachs and Morgan Stanley, may buy up to 123.75 million additional shares from Anthropic at the IPO price.

Control, finances and competition

Anthropic’s founders hold a Class F share carrying 50.1% of voting power. The Long-Term Benefit Trust will elect a majority of the board, leaving Class A shareholders with limited influence.

The company reported third-quarter revenue of $17 billion and nine-month revenue of $33.2 billion, alongside a nine-month net loss of $104 billion. It also reported $900.9 billion in compute and infrastructure commitments and nearly $132 billion in cash and short-term investments.

Anthropic intends to begin trading on the Nasdaq around November 19 under the ticker ANT, according to CNBC reporting. Its rival OpenAI was reportedly valued at $1.25 trillion last week after raising $11 billion, nearly half the $20 billion it initially sought.