Anthropic has officially set the price range for its initial public offering, aiming to raise between $57.75 billion and $64.35 billion from the sale of 825 million Class A shares. The company priced the shares at $70 to $78 each, a move that values the artificial intelligence firm at approximately $1.404 trillion if it lists at the top of that range.
The pricing decision comes despite a broader pullback in AI investing and shakier market conditions. This valuation represents a significant increase from the $965 billion figure reached during a fundraise in May, though it remains below the $2 trillion target the company reportedly sought earlier this year.
Major Tech Investors and Financial Scale
In a separate transaction tied to the IPO, Anthropic agreed to privately sell $26 billion of non-voting Class N stock to a group of major technology firms. The buyers include AMD, Broadcom, Google, Micron, Microsoft, Nvidia, and TSMC. Google and Nvidia are each contributing $10 billion to this private placement.
When combined with the public offering, Anthropic estimates its net proceeds will reach between $84.6 billion and $93.7 billion. This higher figure assumes that underwriters, including Goldman Sachs and Morgan Stanley, exercise their option to purchase an additional 123.75 million shares at the IPO price.
The company reported strong financial growth in its updated filing. Run-rate revenue reached $81 billion by the end of October, an increase of roughly $10 billion from the end of September. For the third quarter, revenue came in at $17 billion, with nine-month revenue totaling $33.2 billion. The company holds nearly $132 billion in cash and short-term investments, though it reported a nine-month net loss of $104 billion due to massive compute and infrastructure commitments totaling $900.9 billion.
Founder Share Sales and Corporate Structure
The updated filing provides specific details on the shares being sold by Anthropic’s co-founders. CEO Dario Amodei, president and chairperson Daniela Amodei, chief compute officer Tom Brown, Anthropic Institute head Jack Clark, chief science officer Jared Kaplan, chief architect Sam McCandlish, and interpretability research lead Christopher Olah are all selling nearly 3.4 million shares each. At the midpoint of the IPO price range, each founder stands to receive approximately $250 million.
Despite the public listing, the founders retain significant control over the company. As a public benefit corporation, the founders hold a Class F share that grants them 50.1% of the voting power. Additionally, the Long-Term Benefit Trust will elect a majority of the board, meaning Class A shareholders will have limited influence on corporate governance.
Anthropic intends to begin trading on the Nasdaq around November 19 under the ticker symbol “ANT”. The company expects to allocate up to 20% of the offering to retail investors. The filing also notes a terminology shift, using “super intelligence” and “SI” interchangeably with “artificial intelligence” and “AI” to align with a September executive order from the Trump administration directing government agencies to adopt the new terminology.
Source: TechCrunch
