Anthropic IPO valuation expected to land between 1.5 and 2 trillion dollars

Anthropic is preparing for an initial public offering, with the Wall Street Journal reporting the company could raise between 70 and 100 billion dollars. The company currently holds 130 billion dollars in cash, a position described as the highest after Warren Buffett's holdings, while carrying 650 billion dollars in liabilities over the next ten years for data center construction. Its revenue run rate stands at 75 billion dollars, with 80% of that revenue derived from models released in the last six months. Approximately 47% to 48% of revenue flows through Google Cloud and AWS, which take a 17% cut. Anthropic has secured largely non-cancellable compute contracts, including 114 billion dollars with Google, 110 billion with Amazon, and 50 billion with Microsoft, alongside a 120 billion dollar contract with SpaceX that runs until 2029. The company's S1 filing notes that 5% to 6% of revenue was previously lost to Chinese model distillation, a vulnerability that has now been blocked. Daniel Kröger of DWS estimates the IPO valuation will land between 1.5 and 2 trillion dollars, down from earlier expectations of 2 trillion due to market skepticism. Kröger argues that the company's moat rests on its culture, noting that all seven founders remain, its multi-vendor GPU strategy involving Nvidia, AMD, and Google TPUs, and its use of AI to optimize operations, such as reducing data center cabling time from six months to two.