Anthropic sets $1.4 trillion IPO target; bankers eye $1.5 trillion

Anthropic's amended filing lands after weeks in which reports had put its potential valuation at roughly $2 trillion, so the $1.4 trillion figure represents a step down from those earlier expectations. The filing also details a separate private placement: Google, Nvidia, AMD, Broadcom, Micron, Microsoft and TSMC Partners have agreed to purchase a combined $26 billion of Anthropic's nonvoting Class N common stock immediately following the IPO, bringing the combined total to as much as $90.4 billion.

Dan Ives of Yorkville Ives & Co. framed the deal as a debate over "margin against growth," with the stock likely to trade on whether Anthropic's second-quarter operating profit or its third-quarter loss reflects its true run rate. He noted that the $1.4 trillion figure includes stock options and other equity awards, and that counting only shares outstanding, the top of the range values the company at about $1 trillion. Ives argued that pricing at roughly $1 trillion, with the option to move toward $1.2 trillion if the book allows, is the right move, adding that "a deal of this size gets one shot at its debut."