Anthropic sets IPO price range of $70 to $78 per share to reach an implied valuation of $1.404 trillion

Summary

• Anthropic plans to proceed with its IPO despite challenging market conditions and a broader pullback in AI investing.
• The company filed an updated prospectus to offer 825 million Class A shares at an estimated price range of $70 to $78 per share.
• The public offering is expected to raise between $57.75 billion & $64.35 billion.
• A fully diluted valuation of $1.404 trillion is possible if shares list at the top of the price range, which is higher than the $965 billion valuation from a May fundraise but lower than the previously targeted $2 trillion.
• Anthropic struck a deal to privately sell $26 billion of non-voting Class N stock to AMD, Broadcom, Google, Micron, Microsoft, Nvidia, & TSMC.
• Google & Nvidia are each investing $10 billion in the private Class N stock sale.
• Total estimated net proceeds from the public offering & private sales range from $84.6 billion to $93.7 billion.
• Underwriters including Goldman Sachs & Morgan Stanley have an option to purchase up to 123.75 million additional shares at the IPO price.
• Founders retain Class F shares holding 50.1% of voting power, while the Long-Term Benefit Trust will elect a board majority, limiting Class A buyer influence.
• Trading on the Nasdaq is expected to begin around November 19 under the ticker symbol "ANT".
• Third-quarter revenue was $17 billion, nine-month revenue was $33.2 billion, & nine-month net loss was $104 billion.
• Compute & infrastructure commitments totaled $900.9 billion, while the company holds nearly $132 billion in cash & short-term investments.
• Rival OpenAI was reportedly valued at $1.25 trillion after raising $11 billion.