Anthropic Is Reportedly Gearing Up for an IPO This Year That Could Be Bigger Than SpaceX. 3 Things Investors Should Know.
Anthropic, the parent company of the large language model (LLM) family known as Claude, is reportedly preparing for an initial public offering that could happen as soon as later this month or in October, according to various media outlets. The company confidentially filed for an IPO back in June.
It would mark the second monster artificial intelligence (AI)-related IPO since Space Exploration Technologies went public in June, raising nearly $86 billion at a $1.77 trillion valuation, in the largest IPO ever.
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Given the amount of interest and hype surrounding this company and this topic, Anthropic could surpass SpaceX in total funds raised and valuation. Here are three things investors should know.
- Anthropic may try to raise as much as $100 billion at a $2 trillion valuation
As if SpaceX didn't go big enough, Anthropic will reportedly attempt to top it by raising up to $100 billion at a valuation as high as $2 trillion.
This is, of course, no guarantee, as even SpaceX faced some pushback, despite its successful raise. SpaceX's stock has also been up and down since the IPO, as investors worry about the high valuation, the intense capital expenditures required by the business, and the future release of additional shares into the market. Whether Anthropic can reach a $2 trillion valuation will depend in part on the financials reported in its registration statement.
The company reportedly doubled revenue in the second quarter to $11.6 billion and reported positive adjusted operating income, though I'm sure investors will be curious to see the adjustments. The Financial Times also reported that investors in Anthropic believe that annualized revenue could reach $120 billion by the end of this year.
- Anthropic could be targeting a $30 trillion TAM
Perhaps one of the most surprising figures in SpaceX's registration statement was its $28.5 trillion total addressable market (TAM), essentially the opportunity at play for the company. The bigger the TAM, the bigger the revenue potential.
Citing anonymous sources, The Wall Street Journal recently reported that Anthropic is supposedly eying a $30 trillion TAM.
Investors should be skeptical of TAMs, but the sheer size of SpaceX's TAM seemed to excite the market, even if it rested on some pretty spectacular assumptions.