Google, Nvidia, AMD And Others To Invest $26B In Anthropic Alongside IPO

• The tech companies are among seven cornerstone investors in a private placement for Anthropic.
• The filing did not say how much each company will buy.
• Together, the IPO and private placement could raise about $90.4 billion.

Alphabet’s (GOOGL) Google, Nvidia (NVDA) and Advanced Micro Devices (AMD) are among a group of technology companies that have agreed to buy $26 billion of Anthropic (ANT) shares through a private placement alongside the AI company’s planned initial public offering (IPO).

According to the latest prospectus filed with the Securities and Exchange Commission (SEC) on Tuesday, other investors in the private placement include Broadcom (AVGO), Micron Technology (MU), Microsoft (MSFT) and TSMC Partners. The filing did not say how much each company will buy.

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On Stocktwits, retail sentiment around Anthropic’s planned ANT ticker remained in ‘bearish’ territory over the past day. 

Anthropic IPO Could Raise More Than $90B

A private placement lets a company sell shares directly to a select group of investors, separate from its public offering. 

For the IPO, Anthropic plans to offer 825 million shares at $70 to $78 apiece, which means Anthropic could raise as much as $64.4 billion.  Together, the IPO and private placement could raise about $90.4 billion.

According to a report by The Wall Street Journal, Anthropic plans to move forward with its IPO offering later this month despite recent market volatility tied to artificial-intelligence investments. Sources said the company plans to start trading Thursday or Friday next week.

Anthropic’s Investors Include Its Chip Suppliers, Cloud Providers

Cornerstone investors commit to buying shares in advance. That helps a company show demand before it sells to the wider market.

However, when it comes to Anthropic, there is an overlap between its investors, suppliers and customers, which has drawn attention to the potential for circular financing.

The concerns come against the backdrop of Anthropic’s substantial infrastructure commitments. The company disclosed about $895 billion in purchase and lease obligations, largely tied to computing capacity and data centers, in its amended filing.

Anthropic IPO Price Range Implies Valuation Of Up To $1.3 Trillion

The prospectus does not state a valuation for Anthropic. Based on the roughly 16.9 billion fully diluted shares implied by the company’s October filing, the proposed price range of $70 to $78 would value Anthropic at approximately $1.2 trillion to $1.3 trillion.

That would be below the $1.5 trillion to $2 trillion valuation range that bankers and investors had discussed in recent weeks. The firm also reportedly retracted its draft prospectus, which put the proposed price range between $70 and $80 per share.

Anthropic reported third-quarter revenue of about $17 billion and an operating loss of $567 million. 

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