Investors press Anthropic to seek $1.5 trillion IPO valuation

Some institutional investors have urged Anthropic to price its planned initial public offering at a valuation of $1.5 trillion to $1.6 trillion, below the $2 trillion level discussed in prior months, The Wall Street Journal reported on November 2, citing people familiar with the matter.

The investors pointed to unsettled markets, heavy exposure to artificial intelligence bets, local opposition to data centers and questions over when large cloud operators such as Amazon and Meta Platforms will show profits tied to AI, according to the Journal.

Anthropic filed an updated S-1 the same day. Quarterly sales climbed 47% from the prior quarter, down from 144% in the second quarter and 132% in the first, CNBC reported. Third-quarter revenue was about $17 billion, roughly 1,127% higher than a year earlier.

The filing listed future spending obligations of $895.4 billion extending to 2045, with close to half due by December 2030 and about $69.8 billion owed in the year after September 30. The company said it held $146.6 billion in cash and other liquid assets, and recorded a net loss of $23.29 billion and an operating loss of $567 million for the quarter, against an operating profit of $974 million in the second quarter.

Amazon, Alphabet and Nvidia are among its backers. Its most recent private valuation was $1.41 trillion, per Nasdaq Private Market.

This story was first reported by TradingView.