On Monday, Anthropic announced its plans to go public by filing for an initial public offering (IPO), marking a surprising twist in the competition with OpenAI to establish itself as the next AI startup valued at $1 trillion in the public market.
The IPO filing is currently confidential as it awaits review by the Securities and Exchange Commission (SEC), a move that comes sooner than anticipated. Anthropic is eager to secure fresh funding ahead of OpenAI. Both firms were initially expected to launch their public offerings in the fall.
In a statement, Anthropic indicated, “This provides us the option to go public once the SEC concludes its assessment.” The specific details regarding the number of shares and their pricing are yet to be determined.
Recently, Anthropic revealed that its valuation has soared to $965 billion following a substantial $65 billion funding round aimed at meeting the growing demand for its AI innovations.
If Anthropic's market debut achieves a valuation of $1 trillion, it would position the company among the highest-valued global firms and potentially make its IPO one of the largest in history, following SpaceX and Saudi Aramco.
An earlier market entry compared to OpenAI could be critical for Anthropic, especially as this launch is expected to coincide closely with SpaceX's anticipated billion-dollar IPO. Analysts suggest that the company that reaches the public market first may gain an edge in an ongoing quest for significant capital, with both Anthropic and OpenAI poised to pursue tens of billions in new funds soon after.
The two companies, alongside their partners and clients, are looking at raising trillions through the bond markets to expand the data centers essential for fueling the AI revolution.
Dan Ives, managing director at Wedbush, commented, “This indicates the potential for a significant resurgence in the IPO market, which has remained relatively quiet for several years." A similar situation unfolded in 2019 when the ride-sharing companies Uber and Lyft went public, with Lyft’s shares performing notably better in the wake of its IPO.
For Anthropic’s founders, many of whom hail from OpenAI, successfully launching their IPO ahead of their former employer would represent a significant personal victory. Dario Amodei, the company’s CEO, is already valued at $7 billion, according to Forbes.
Founded just five years ago, Anthropic operates as a “public benefit corporation,” committed to the “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
While investors have already infused hundreds of billions into Anthropic, OpenAI, SpaceX, and other sizable private startups in recent times, the public market offers a more comprehensive avenue for these companies to access a broader spectrum of investors and funding sources.
Going public also provides an avenue for shareholders—including employees and existing investors—to monetize their shares more easily, paving the way for long-desired returns.
