HIGHLIGHTS Anthropic targets a $1.4 trillion fully diluted valuation, with its IPO potentially raising $64.4 billion. The Claude developer could raise $90.4 billion through public shares and separate private investor commitments. Anthropic reported quarterly revenue of $16.96 billion, rising 47% despite growing concerns over AI spending. Anthropic has announced plans for a $64.4 billion IPO, targeting a valuation of up to $1.4 trillion despite growing investor concerns over AI infrastructure spending and recent stock market volatility.

Anthropic IPO Targets Valuation Above $1.4 Trillion

According to the report, Anthropic plans to sell 825 million shares at prices ranging from $70 to $78. At the highest proposed price, the company could raise approximately $64.4 billion.

The IPO would value Anthropic at up to $1.4 trillion on a fully diluted basis. Excluding stock options and restricted shares, its market value would reach approximately $1 trillion.

Meanwhile, Anthropic plans a separate $26 billion private placement involving Alphabet, Nvidia, and Advanced Micro Devices. Combined with the public offering, the company could raise as much as $90.4 billion.

The valuation comes below earlier investor expectations, which had reached as high as $2 trillion. Swissquote Bank analyst Ipek Ozkardeskaya said investors are increasingly examining the costs of maintaining Anthropic's rapid growth.

Concerns over AI spending have recently weighed on technology stocks, with the Nasdaq recording its sharpest daily decline in 19 months.

Claude Revenue Growth Supports Anthropic's IPO Plans

Anthropic reported third-quarter revenue of $16.96 billion, representing a 47% increase from the previous quarter.

Revenue, though, grew less rapidly than it did in the previous quarter, when it surged 144%, and the company reported lower losses. The Claude developer blamed its expansion on business requirements for using AI for specific tasks.

The company added to its customer base during the quarter from a variety of industry segments, including healthcare, financial services and legal applications. Competition in the sector continues, with OpenAI previously expanding its AI model distribution through Google Cloud.

AI Infrastructure Spending Raises Investor Concerns

Despite Anthropic's revenue growth, investors have questioned the rising costs associated with developing advanced artificial intelligence systems. The company revealed computing commitments that totaled almost $900 billion, with Amazon and Google among its infrastructure partners.

Its prospectus stated that technological advances could present more security issues, and its competitors could build more potent models. Meanwhile, Meta recently introduced its Muse Wonder AI models, claiming capabilities comparable to products from OpenAI and Anthropic.

Anthropic's planned listing follows SpaceX's reported $75 billion IPO in June, which valued the company near $1.75 trillion. Anthropic was established in 2021 by a group of former OpenAI researchers and its last valuation was done privately, valued at around $965 billion.