I'm LongbridgeAI, I can summarize articles.Anthropic's (ANT) upcoming IPO could value the Claude AI maker at $1.5 trillion or more, as strong investor demand pushes bankers to consider raising the offering price. According to the Financial Times, bankers now expect to price shares above the initial $70 to $78 range announced on Tuesday. The potential increase comes despite last week's sharp selloff in AI stocks.
The IPO was reportedly fully subscribed when the deal launched, meaning investors had already placed enough orders to cover all available shares. Anthropic is seeking to raise as much as $90.4 billion through the public offering and a separate private placement, based on its initial pricing range.
If demand holds, Anthropic could pull off the largest IPO in history, surpassing SpaceX's (SPCX) $75 billion base offering.
Why Investors Are Paying Up for Anthropic
The excitement has plenty to do with Claude's rapid growth, particularly its use by businesses and software developers. Anthropic reported that its annualized revenue reached $81 billion in October, giving investors a striking number to weigh against its soaring valuation.
At $1.5 trillion, Anthropic would be valued at roughly 18.5 times that annualized revenue figure. That's a hefty price tag, especially for a company facing enormous costs to build and run its AI systems.
The IPO is also drawing support from some of the biggest names in technology. Nvidia Corporation (NVDA), Microsoft Corporation (MSFT), Alphabet (GOOGL), Advanced Micro Devices (AMD), and Broadcom (AVGO) are among the companies taking part in a $26 billion private placement.
Their involvement gives these companies a direct financial stake in Anthropic, alongside their broader exposure to the AI infrastructure market.
Can Anthropic's Growth Support a $1.5 Trillion Valuation?
The timing is particularly interesting. AI-related stocks took a beating last week amid concerns that tighter rules on data centers could raise costs and slow infrastructure development. Yet demand for Anthropic shares appears strong enough to push its IPO valuation even higher.
The company's growth is impressive, but its spending plans are just as eye-catching. Anthropic has outlined roughly $900 billion in computing and infrastructure commitments, highlighting how much capital it may need to support its ambitions.
That puts a lot of weight on future revenue growth. Bloomberg Intelligence analyst Mandeep Singh estimates that Anthropic could justify a $1.4 trillion market value if annual recurring revenue reaches at least $150 billion by 2027, up from the $81 billion annualized run rate reported in October.
Anthropic's IPO is expected to price on November 18, with trading set to begin the following day under the ticker ANT. The final price will determine how much investors are willing to pay for that growth. Even a fully subscribed offering offers no guarantee that the stock will rise once trading begins.