Anthropic Targets $64.4 Billion in Record Share Sale

Anthropic PBC is drawing massive demand for its upcoming initial public offering, with orders reaching about six times the shares on offer. The AI model firm and its co-founders aim to raise up to $64.4 billion from the IPO, along with $26 billion in a private placement. Shares are priced between $70 and $78 each, and trading on the Nasdaq under the symbol 'ANT' begins on November 19.

Allocation and Partners

Bankers have informed prospective buyers that existing backers will get priority for share allocations, meaning some new investors will receive smaller portions than they expect. Chipmaker Nvidia has agreed to buy about $10 billion worth of shares as part of the concurrent private placement, as the two firms maintain a strategic partnership. Goldman Sachs Group Inc. and Morgan Stanley are leading the share sale.

Valuation and Revenue

The company is targeting a fully diluted valuation of roughly $1.4 trillion. Anthropic reported a revenue run rate of $81 billion as of October 31, up from $65 billion at the end of July.

Context

Large technology firms often launch massive initial public offerings to fund massive infrastructure costs and fuel continued research in artificial intelligence. A high level of early demand allows companies to set initial share prices conservatively before public trading begins on major exchanges.