Anthropic investors weigh lower IPO valuation as growth slows and computing costs mount
publishers 28articles 31first reported 15 Oct, 03:48 UTCdeveloping since 15 Oct · 15 editions
Some current and prospective Anthropic investors are considering a valuation of about $1.5 trillion for the artificial intelligence company’s planned November initial public offering, down from roughly $2 trillion previously expected, Reuters reported, citing people familiar with discussions at an investor meeting in San Francisco.
Anthropic told prospective investors that third-quarter revenue rose 45% from the prior quarter to $16.8 billion and that it was profitable on an adjusted basis, according to Reuters. Investors were encouraged by the results but some were disappointed by the slower sequential growth after revenue more than doubled from the first quarter to $11.6 billion in the second.
A draft IPO prospectus reviewed by The Wall Street Journal showed that Anthropic recorded $16.3 billion in first-half revenue, up from $1.1 billion a year earlier, while posting a net loss of more than $80 billion. About $72 billion of that loss came from accounting charges tied to convertible notes and other financial instruments, the Journal reported. AI infrastructure spending nearly quadrupled to almost $9 billion.
The filing also indicated that Anthropic could spend up to $750 billion on computing capacity in coming years, including contracts still under negotiation. TechCrunch reported that the Claude developer is seeking additional capacity beyond Amazon Web Services, Google and Microsoft, including leased data centers and third-party operators.
The prospectus listed risks including potential liability from harmful AI behavior and reliance on a concentrated customer base. Anthropic did not respond to requests for comment cited by several outlets.
HOW THIS STORY WAS MADE
Written from 8 articles, 5 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 144 h after the record first saw the story; the editor revised it.
- Publishers
- 28
- Source articles
- 31
- Given to the writer
- 8, 5 with the article's own text
- Independent newsrooms
- 8
- This version written
- 144 h after the record first saw the story
- Second model (editor)
- revised
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and changed it before publication. Struck words were in the draft; underlined words are its corrections.
WHAT IT FLAGGED editor revise: Correct the projected computing expenditure from “more than” $750 billion to “up to” $750 billion. - "Anthropic could spend more than $750 billion on computing capacity in coming years": The source says Anthropic indicated it could spend up to $750 billion, not more than $750 billion.
THE DRAFT AND THE CHANGES
Anthropic investors weigh lower IPO valuation as growth slows and computing costs mount
Some current and prospective Anthropic investors are considering a valuation of about $1.5 trillion for the artificial intelligence company’s planned November initial public offering, down from roughly $2 trillion previously expected, Reuters reported, citing people familiar with discussions at an investor meeting in San Francisco.
Anthropic told prospective investors that third-quarter revenue rose 45% from the prior quarter to $16.8 billion and that it was profitable on an adjusted basis, according to Reuters. Investors were encouraged by the results but some were disappointed by the slower sequential growth after revenue more than doubled from the first quarter to $11.6 billion in the second.
A draft IPO prospectus reviewed by The Wall Street Journal showed that Anthropic recorded $16.3 billion in first-half revenue, up from $1.1 billion a year earlier, while posting a net loss of more than $80 billion. About $72 billion of that loss came from accounting charges tied to convertible notes and other financial instruments, the Journal reported. AI infrastructure spending nearly quadrupled to almost $9 billion.
The filing also indicated that Anthropic could spend moreup thanto $750 billion on computing capacity in coming years, including contracts still under negotiation. TechCrunch reported that the Claude developer is seeking additional capacity beyond Amazon Web Services, Google and Microsoft, including leased data centers and third-party operators.
The prospectus listed risks including potential liability from harmful AI behavior and reliance on a concentrated customer base. Anthropic did not respond to requests for comment cited by several outlets.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →