Key facts
- AI startup Anthropic has chosen Nasdaq for its potential initial public offering.
- The company's IPO plans are subject to change.
- Anthropic is seeking to finalize a $15 billion revolving credit facility.
- The AI company's IPO could be one of the largest ever, with market discussions around a $1.5-$2 trillion valuation.
- Concerns over negative sentiment towards AI and data centers are expected to be listed as a risk factor in the prospectus.
Artificial intelligence company Anthropic has selected Nasdaq for its potential initial public offering, according to a report by Business Insider citing a person familiar with the company's plans. The company had been expected to make its IPO prospectus public as early as late August or after Labor Day, with trading penciled in for late September or October. However, plans have shifted, with the prospectus now expected in late September and marketing potentially starting in mid-October, pushing the completion of the listing closer to the US midterm elections in November.
Anthropic is reportedly preparing a public float that could match or exceed SpaceX's record $86.2 billion listing, with market discussions centering on a potential valuation in the $1.5-$2 trillion range, against a private valuation near $1 trillion and an annualized revenue run-rate in the tens of billions of dollars. As part of the IPO process, Anthropic is looking to finalize a $15 billion revolving credit facility. Chief financial officer Krishna Rao has been holding test-the-waters meetings with bankers and investors, with questions focusing on competitive positioning, margin pressure from open-source models, and the impact of any slowdown in data-center construction. The prospectus is expected to candidly address risks such as negative sentiment towards AI and data centers, with concerns over job displacement and local opposition to data-center development potentially affecting the business. Morgan Stanley, Goldman Sachs, JPMorgan, and Citi are among the banks reportedly working with Anthropic on the IPO.