Anthropic sets IPO price range at $70 to $78 per share

Anthropic has officially set its IPO price range at $70 to $78 per share, valuing the company at approximately $1.3 trillion. This represents a substantial decrease from previous reports that floated valuations between $2 trillion and $3 trillion, with some analysts noting a drop of nearly 40% from the highest estimates. The company plans to sell 825 million shares, raising approximately $65 billion in new capital, with total proceeds reaching $90 billion when including a $26 billion private placement from tech giants such as Google, Microsoft, and NVIDIA. This total raise would surpass SpaceX’s recent $86 billion offering, marking the largest on record. Pricing begins on November 18, with trading set to commence on November 19 on NASDAQ, where approximately 20% of shares are reserved for retail investors. The offering is reported to be six times oversubscribed, a figure exceeding the four-times oversubscription seen in SpaceX’s IPO. Financial performance supports the valuation, with Anthropic reporting nine-month revenue of $33 billion, up from $2.5 billion a year earlier, and a Q3 revenue of $17 billion that surpassed OpenAI’s $10 billion. Despite a nine-month net loss of $104 billion, largely driven by a $94 billion non-cash charge, the company is currently profitable with positive cash flow. Analysts view the lower valuation as a strategic decision to absorb available capital for AI, potentially limiting resources for competitors. Goldman Sachs, the lead underwriter, forecasts Anthropic revenue to exceed $600 billion by 2030, implying a compound annual growth rate of 65.5%.