Anthropic files for IPO with valuation up to $1.3 trillion

Anthropic, the AI company behind the Claude chatbot, is set to list its shares on New York's Nasdaq stock exchange this month. The company will offer shares for between $70 and $78 each and will raise up to $64 billion when it floats.

The listing would value Anthropic at between $1.1 trillion and $1.3 trillion, according to the BBC. The company is loss-making. In its most recent results for the six months to the end of June, Anthropic's revenues jumped to $16.2 billion from $1.1 billion in the same period last year. However, its pre-tax loss jumped to $80.7 billion from $12.9 billion.

IPO details and market context

Anthropic will list under the symbol ANT on 19 November. It will be the first fully AI-focused company to go public, making it a test case for the future of the technology.

The huge valuation comes despite the company warning last month that AI could pose "catastrophic or existential risks to humanity". Anthropic has admitted that advanced AI systems "could, if not developed, deployed, and operated with appropriate safeguards, oversight, and security measures, pose catastrophic or existential risks to humanity, particularly if such systems were misused, replicated, weaponised, or allowed to operate with a high degree of autonomy".

The company is floating at a volatile time for big tech firms. After last week's US midterm elections, the Nasdaq fell sharply on concerns a Democrat-led Congress could slow development of AI and the buildout of data centres. There are also wider fears over the billions of dollars being spent on AI and whether it will pay off.

Company background

Anthropic is just five years old. It was co-founded in 2021 by brother and sister Dario and Daniela Amodei along with five others – all of whom worked at OpenAI, the rival AI giant behind ChatGPT.

It announced its intention to list on the stock market in June and OpenAI followed suit. That listing is now expected to occur early next year.

Why it matters

The IPO will test investor appetite for a loss-making AI company at a trillion-dollar valuation during a period of market volatility and debate over AI spending and risks.

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Sources

• bbc.com: Anthropic set for $1.3tn stock market debut despite 'catastrophic' AI warning
• ft.com: Subscribe to read

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.