Artificial intelligence company Anthropic is moving toward going public on Wall Street, the latest chapter in its meteoric rise from a little-known research laboratory to one of the leading AI companies valued at $965 billion.
Anthropic said Monday it has submitted a confidential filing with the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock.
“This gives us the option to go public after the SEC completes its review,” Anthropic said in a brief statement. “The proposed initial public offering will depend on market conditions and other factors.”
The company said it hasn’t decided on the number or price of shares to be offered.
Anthropic said last week it had raised $65 billion in private funding that will push its valuation to $965 billion, a whopping number that makes the five-year-old maker of the Claude chatbot one of the world’s most valuable startups.
Anthropic now has vaulted ahead of its chief rival, ChatGPT maker OpenAI, not only in market value and reported revenue but also on the path to becoming a publicly traded company.
“I think we were all expecting OpenAI to go first, so it was a little bit surprising,” said Patrick Corrigan, a law professor at Notre Dame University who studies IPOs. “Public investors are going to be comparing them roughly around the same time, and so there seems to be a bit of a first movers’ advantage here.”
Anthropic said it’s now making annualized revenue of $47 billion from selling its technology to people and organizations using Claude to write code and do other work and personal tasks on their behalf.
Anthropic was formed in 2021 by ex-OpenAI leaders and now both AI firms, along with Elon Musk’s rocket and AI company SpaceX, are all expected to become publicly traded. All three have been losing more money than they make, fueling concerns of an AI bubble.
Wedbush Securities analyst Dan Ives said Anthropic’s move marks a major step for the company to get ahead of OpenAI and “an opening of the floodgates for the IPO market, which has been relatively dormant for a few years, with these three major conglomerates set to go public later this year.”
Corrigan said the race between Anthropic, OpenAI and SpaceX resembles in some ways the rush by startups to go public in the early internet era. Some of those companies — like Amazon — did well, and others infamously failed during the dot-com crash but still left new technology that changed society and work life.
“Whenever there is speculation, there’s also usually substance and fundamentals,” Corrigan said. “The question here is whether the price investors are going to end up paying is going to match up to the substance and fundamentals of what AI is really going to do in the real economy and as a business.”
Claude’s growing popularity has left OpenAI playing catch-up despite its early lead in making ChatGPT a household name that sparked a commercial AI boom. Anthropic also last week launched its newest AI model, called Claude Opus 4.8, boasting that it is even better at coding and other professional work than previous models.
OpenAI last reported in March it was heading toward a $852 billion valuation after a $122 billion fundraising round. It has not yet reported filing initial IPO paperwork with the SEC.
SpaceX was valued at $800 billion last year, but its value grew to $1.25 trillion after the space exploration company merged with Musk’s xAI in February. Musk recently announced plans for one of the biggest stock sales ever and will be able to pitch the offering to investors as soon as this week.
IDC analyst Tim Law said it will be a “healthy thing” for the AI industry when these companies are required to provide quarterly earnings reports and disclose some of their technology investments.
“We think of these as very mature organizations, but they’ve had to mature in a very short period,” he said.
As for bubble concerns, Law, who rode the dot-com IPO wave while working for internet company VerticalNet in the early part of the century, said there’s evidence from these AI startups’ existing products to show they are on a path not just to profitability but to artificial general intelligence, technology that does work as well as or better than humans.
“There are some skeptics around demand. I thoroughly believe the demand is there and will grow,” Law said. “I think this funding round may be the thing that enables us to complete the final sprint toward AGI.”
Artificial intelligence company Anthropic is taking significant steps towards going public, marking a notable transition from a relatively obscure research lab to one of the leading AI firms, currently valued at $965 billion. This rapid ascent is underscored by its recent confidential filing with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of its common stock, which allows the company the option to go public once the SEC completes its review. Anthropic also stated that the finalization of its IPO will be contingent on market conditions and other considerations, with no specific details on the number or price of shares yet disclosed.
In a remarkable financial achievement, Anthropic recently reported raising $65 billion in private funding, elevating its valuation to $965 billion and positioning it as one of the most valuable startups globally. This valuation surpasses that of its primary competitor, OpenAI, the creator of ChatGPT, placing Anthropic in a favorable position not only in terms of market value and revenue but also in its trajectory toward becoming a publicly traded entity.
Patrick Corrigan, a law professor at Notre Dame University specializing in IPOs, remarked on the surprising nature of Anthropic’s IPO plans, given that many anticipated OpenAI would be the first to make this move. The timing of both companies going public will lead to a direct comparison from public investors, potentially granting Anthropic a first-mover advantage in the IPO market. Currently, Anthropic is generating annualized revenue of approximately $47 billion from its technology, which is being utilized by individuals and organizations for tasks such as coding and other professional activities.
Founded in 2021 by former leaders from OpenAI, Anthropic joins a competitive landscape that includes other prominent tech companies, such as SpaceX, all of which are expected to pursue public offerings. There are growing concerns regarding an AI bubble, particularly as these firms continue to operate at a loss, raising questions about their long-term sustainability and profitability.
Dan Ives, an analyst at Wedbush Securities, indicated that Anthropic’s IPO move is a significant step forward in its competition with OpenAI and could signal the beginning of increased activity in the IPO market, which has been relatively stagnant for several years. The anticipated public listings of these tech giants could invigorate the market, reminiscent of the dot-com era when numerous startups rushed to go public, with mixed outcomes.
Corrigan compared the current race among Anthropic, OpenAI, and SpaceX to the early days of the internet, where some companies thrived, while others faced dramatic failures during the dot-com crash. He noted that while speculation often accompanies such market movements, the real challenge lies in whether the prices investors are willing to pay will align with the actual value and potential of AI technologies in the economy.
Despite its initial advantages, OpenAI is now facing challenges as Claude, Anthropic’s AI model, gains popularity and market traction. Anthropic recently launched Claude Opus 4.8, an upgraded version of its AI model that claims to outperform previous iterations in coding and other professional tasks. OpenAI’s last reported valuation was $852 billion following a $122 billion fundraising round, but it has not yet filed for an IPO.
SpaceX, after a previous valuation of $800 billion, saw its value increase to $1.25 trillion following its merger with Musk’s xAI venture. Musk has also announced plans for a major stock sale, set to pitch this offering to investors soon.
IDC analyst Tim Law expressed optimism about the upcoming IPOs, suggesting that the requirement for these companies to provide quarterly earnings reports and disclose technology investments will ultimately benefit the AI sector. He acknowledged that while these organizations appear mature, they have had to evolve rapidly to keep pace with the fast-changing tech landscape.
Regarding concerns about an AI bubble, Law, who experienced the dot-com boom firsthand, believes that the existing products from these AI startups indicate a strong path toward profitability and potentially artificial general intelligence (AGI)—technology capable of performing tasks as well or better than humans. He remains confident in the demand for AI solutions, asserting that the recent funding rounds could propel these companies toward achieving AGI.
In summary, Anthropic’s move towards an IPO reflects its extraordinary growth and positions it as a formidable player in the evolving AI landscape. With significant funding and a competitive edge over its rivals, the company’s future remains promising, albeit with inherent risks and challenges as it navigates the public market. The anticipated public offerings of Anthropic, OpenAI, and SpaceX signal a pivotal moment for the tech industry, reminiscent of past technology booms, raising questions about the sustainability and real-world impact of their innovations.
