Anthropic, the developer of the AI assistant Claude, has made a public filing for an initial public offering that markets expect could raise as much as $100 billion at a valuation of around $2 trillion, making it one of the biggest stock market debuts in history. The listing is expected to take place after the US midterm elections. Stock market analysts say the debut could be a major test of investor appetite for artificial intelligence, though some concern is growing about the vast sums being borrowed to fund AI infrastructure.
The company revealed losses of more than $80.7 billion in the first half of the year and generated $16.3 billion in revenues, with 23 per cent coming from just two unnamed customers. US bank Morgan Stanley expects AI-linked companies will borrow around £373 billion this year to invest in data centres and other global projects. Facebook owner Meta today announced plans for a record-breaking £71 billion fundraising drive to fund its AI expansion. This has fuelled concerns among investors that AI spending is circular, with suppliers and chipmakers investing money in AI developers, who then use the cash to buy products and services from those same companies.
Susannah Streeter, chief investment strategist at investment platform Wealth Club, said the IPO was shaping up to be a major test of investor appetite for AI at a turbulent time for markets. She noted that the gloss was beginning to come off some of the AI investment boom, as investors examined whether sums being poured into the technology would generate the returns needed to justify valuations. Michael Field, chief European equity strategist at Morningstar, said Anthropic's governance structure appeared designed to limit shareholder influence, which could prove problematic for some investors.
Nearly a quarter of Anthropic's 400-page IPO prospectus was dedicated to risk factors. The company warned that advanced AI systems could pose catastrophic or existential risks to humanity if not developed, deployed and operated with appropriate safeguards, especially if misused, replicated, weaponised or allowed to operate with high autonomy. However, Anthropic also said AI was one of the most consequential technologies in human history, with potential to improve human life by accelerating scientific innovation and potentially curing diseases such as cancer, Alzheimer's disease, heart disease, rare genetic diseases and major infectious diseases.
Anthropic's seven co-founders, Dario Amodei, Daniela Amodei, Tom Brown, Jack Clark, Jared Kaplan, Sam McCandlish and Christopher Olah, will retain majority voting control over the company after the IPO, though the company will sell some shares to the public. The company said its founders are distinctly equipped to be stewards of its mission. For UK investors, the listing signals continued opportunities to gain exposure to major artificial intelligence companies through the public markets, though at valuations that already reflect significant expectations of future success.
Wealth Club's Streeter noted that a huge pool of private capital had allowed AI businesses to scale up and command extraordinary valuations long before reaching the stock market, meaning public market investors would be buying in at prices with a hefty dose of future success already factored in. Despite concerns about valuations, fear of missing out is likely to drive significant interest from investors keen to gain exposure to one of the biggest names in the AI industry.