Anthropic Targets Record IPO Valuation Up to $1.5 Trillion

Anthropic is pursuing the largest initial public offering in history, with bankers considering raising the company's valuation to $1.5 trillion or more due to strong investor demand. The AI firm, creator of the Claude chatbot, initially filed for a valuation of $1.4 trillion with a goal to raise up to $90.4 billion through a public listing and a $26 billion private placement. Major technology firms, including Nvidia Corp., Microsoft Corp., Alphabet Inc.'s Google, and Broadcom Inc., have committed to the private placement.

The company plans to sell shares under the ticker ANT at a price range of $70 to $78, with trading expected to begin on November 19. As part of its global fundraising effort, Anthropic has also filed with Japan's Ministry of Finance to raise up to $3.5 billion from Japanese investors. Despite reporting third-quarter revenue between $7 billion and $17 billion, the company warned in its filing that advanced AI systems could pose "catastrophic or existential risks to society if not developed and deployed responsibly.

The listing faces headwinds, including political volatility in the United States and a designation by the Pentagon as a national security risk due to restrictions on military use of its technology. Investor Jack Selby has criticized the valuation as overly optimistic, suggesting that existing investors may be rushing to exit their positions. Selby warned that an underperforming IPO could trigger a broader market correction in an AI sector he believes is driven by excessive storytelling.