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Anthropic Files To Go Public
Generate the bag // Illustration by Kate Walker
Top AI company Anthropic is going public at a potential $1.75 trillion valuation.
Why It Hits: Anthropic’s IPO makes it the first pure-AI startup to hit the public markets — a big moment for the nascent industry that’s already carrying the S&P 500 (and, by extension, the entire US economy). Yikes. With OpenAI prepping its own IPO and Meta announcing an equity offering to raise $95 billion for AI expenditures, the race is on to gobble up as much capital as possible before there’s literally no money left to fund the AI buildout.
Behind The Filing: Anthropic is currently the highest-valued private company in the world… and now wants to become one of the most valuable public companies later this year.
It’ll IPO on the Nasdaq under the ticker symbol ANT, with Goldman Sachs and Morgan Stanley leading the offering.
The company hasn’t disclosed how many shares it’ll make available, but it has set up a separate corporate entity called “Founder LLC,” giving its seven co-founders control of 50.1% of shareholder voting power.
Regardless, risk-happy investors will likely jump at the chance to invest — despite operating at an $80.7 billion net loss, revenue growth is up over 1,000% this year. The hope is that its massive investments in data centers and chips will pay off.
But be warned: the company said in its prospectus that it doesn’t expect future revenue growth to be quite so frothy. The past year was an outlier, and growth could be dampened by future regulation, a maturing market, or changes in user demand.
Closing Thoughts: Fascinatingly, Anthropic devoted 90 whole pages of its prospectus — about a third of the document — to the inherent risks of its technology. Every company includes risk factors when preparing for an IPO, but few cite challenges like systems that could “behave in unintended, misaligned, or autonomous ways” and pose “catastrophic or existential risks to humanity.”
So… invest accordingly!
Prediction: Who takes control of the House and Senate after the midterm elections could change the narrative around Anthropic’s IPO. That could set the stage for what kind of AI regulations hit the docket.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.