Claude chatbot's parent company Anthropic is seeking a $1.4 trillion valuation in a blockbuster initial public offering (IPO) despite AI stocks taking a hit after the Democratic Party's sweeping victory in the U.S. The artificial intelligence giant plans to sell 825 million shares at between $70 and $78 each, according to a regulatory filing on Tuesday.
With the number of shares offered, the company could raise around $64.4 billion, with an additional $26 billion expected through a private placement involving technology giants including Google, Nvidia and Microsoft. The combined fundraising could reach $90.4 billion, making it one of the largest stock market fundraising events in history.
However, the valuation represents a sharp retreat from the $2 trillion figure discussed by investors in early October. The change comes after a turbulent week on Wall Street, where AI-related stocks suffered heavy losses amid concerns about tighter scrutiny of data centres following Democratic gains in Congress.
The Nasdaq 100 plunged 6.4% in a single session last Thursday, erasing approximately $2.3 trillion in market value. Investors are increasingly questioning whether the enormous sums being spent on AI infrastructure will generate sufficient returns.
Anthropic itself has nearly $900 billion in computing commitments involving major technology companies, highlighting the scale of its expansion plans. Founded in 2021 by former OpenAI researchers, the San Francisco-based company remains unprofitable despite rapidly growing revenue.
Its IPO, expected later this month, could become a major test of investor confidence in the AI industry. The company's shares are expected to trade on the Nasdaq under the ticker symbol ANT.