AI firm Anthropic reportedly eyes record-breaking IPO, potentially exceeding SpaceX

Anthropic, the artificial intelligence company behind the AI chatbot 'Claude,' is reportedly preparing for a colossal Initial Public Offering (IPO), potentially aiming to surpass the record set by SpaceX. The five-year-old AI firm, which reported substantial net losses nearing $42 billion last year, is seeking to raise over $100 trillion Korean won (approximately $75 billion USD) from the stock market.

This move signals a potential continuation of the intense AI investment fervor into global stock markets. According to Bloomberg, citing multiple sources, Anthropic is preparing to file IPO documents as early as the end of this month. While specific valuation figures were not disclosed in recent investor presentations by CFO Krishna Rao, discussions are ongoing, and the IPO size and timeline could still change. Anthropic has not yet responded to requests for comment.

Should Anthropic achieve its fundraising goal of around $75 billion, it would eclipse SpaceX's record IPO. SpaceX initially raised $75 billion, with the final amount reaching $86.2 billion after accounting for overallotment options. Anthropic's valuation has seen rapid growth, reaching $965 billion after a $65 billion investment in May, surpassing OpenAI's valuation of $85.2 billion at the time of its $12.2 billion funding round in March.

The company's rapid ascent is attributed to swift revenue growth. In the second quarter of this year, Anthropic's provisional revenue exceeded $11.5 billion, a more than 14-fold increase from $787 million in the same period last year. By the end of July, its annualized revenue had reached $65 billion. However, this growth has been accompanied by escalating costs. Last year, Anthropic incurred a net loss of approximately $42 billion, a five-fold increase from the previous year's $8.3 billion. Despite this, the company reportedly achieved adjusted operating profit in the second quarter of this year.

A significant cost factor is the immense computing power required for training its advanced AI models, known as 'frontier models.' Anthropic has a computing resource agreement with SpaceX, which could amount to tens of billions of dollars over the next three years. Ahead of its IPO, Anthropic is also seeking additional funding through a revolving credit facility, aiming for $10 billion, which is expected to exceed its target. Morgan Stanley, Goldman Sachs, and JP Morgan Chase are reportedly leading the IPO, with other investment banks potentially joining. The company is also considering implementing a dual-class share structure to protect founders' control, granting them more voting rights than ordinary shares.