Anthropic reportedly preparing for one of the largest IPOs ever in race with OpenAI: FT

Anthropic, the innovative AI startup renowned for its Claude chatbot, is reportedly in preliminary discussions to initiate one of the largest initial public offerings (IPOs) in history, potentially as soon as next year, according to a report from the Financial Times. To facilitate this significant move, the company has enlisted the services of the law firm Wilson Sonsini Goodrich & Rosati, known for its involvement in major tech IPOs, including those of Google, LinkedIn, and Lyft. Led by CEO Dario Amodei, Anthropic is also in pursuit of a private funding round that could elevate its valuation beyond $300 billion, bolstered by a $15 billion combined investment from industry giants Microsoft and Nvidia. Although discussions regarding the IPO have taken place with several top investment banks, sources indicate that these conversations are still in the early and informal stages. Should these plans materialize, Anthropic could find itself in direct competition with OpenAI, the creator of ChatGPT, which is also reportedly making preparations for a public offering. The prospect of these IPOs arrives at a time of heightened scrutiny regarding investor interest in AI startups, particularly those that have yet to achieve profitability, amid concerns about a potential AI bubble. An Anthropic representative noted that it is standard practice for companies of their size to operate similarly to publicly traded entities, but emphasized that no final decisions have been made regarding the IPO timeline or the move to go public. While CNBC reached out for comments, Anthropic and Wilson Sonsini were unavailable. Yet, sources from the Financial Times noted that Anthropic has been diligently preparing for a potential listing, although specific details remain undisclosed. This news follows a series of strategic changes within the company, including the recruitment of former Airbnb executive Krishna Rao, who played a pivotal role in their IPO process back in 2020. Recent valuations place Anthropic in the range of $350 billion, following significant investments totaling up to $5 billion from Microsoft and $10 billion from Nvidia. In its quest to surpass OpenAI in the AI domain, Anthropic is also aggressively expanding its operations, recently unveiling a $50 billion initiative for AI infrastructure that includes new data centers in Texas and New York, as well as tripling its international workforce. Investors appear optimistic about the potential IPO, which could allow Anthropic to take the lead over OpenAI. While OpenAI has been rumored to be exploring an IPO, its CFO recently clarified that there are no immediate plans for a public listing, despite finalizing a $6.6 billion share sale at a $500 billion valuation last October.