Anthropic, the innovative force behind the Claude chatbot, recently announced that it has discreetly submitted paperwork for an initial public offering (IPO). This strategic move positions Anthropic ahead in the race against OpenAI, another major player in the artificial intelligence arena, which many speculate might reveal its own IPO aspirations later this year. Meanwhile, this announcement follows closely on the heels of SpaceX’s filing, which encompasses Elon Musk’s AI venture, xAI.
In a research note released on Monday, analysts from Wedbush Securities observed, “This development signals a potential rejuvenation of the IPO landscape, which has been largely inactive in recent years. With these three tech giants poised to enter the public domain soon, a competitive dash to the stock markets seems imminent in the coming months.”
The upcoming IPOs of these AI leaders will serve as a litmus test for investor enthusiasm within this rapidly expanding industry. Wall Street anticipates that advancements in artificial intelligence will enhance productivity, drive corporate earnings, and usher in transformative economic shifts across the U.S. Yet, the ability of these AI firms to meet such lofty expectations remains to be seen.
By opting for a confidential filing, Anthropic gains the advantage of receiving preliminary feedback from regulators before making a public submission to the U.S. Securities and Exchange Commission. The company elucidated in a statement, “This approach provides us the flexibility to proceed with going public once the SEC’s review is finalized. Market conditions and additional factors will play a crucial role in our decision regarding the timing of the proposed IPO.”
A confidential filing allows Anthropic to gather feedback from regulators before it submits a public filing with the U.S. Securities and Exchange Commission.
“This gives us the option to go public after the SEC completes its review,” the company said in a statement. “The proposed initial public offering will depend on market conditions and other factors.”
The company said it hasn’t decided on the number or price of shares to be offered.
AI showdown
While demand for AI products is growing rapidly, some investors question whether these companies’ massive investments in building data centers will translate into profits. Some experts are also questioning whether AI will turn out to be as transformative for businesses as supporters of the technology insist.
Last week, Anthropic announced that it raised $65 billion in a recent funding round, bringing its valuation to $965 billion. The San-Francisco-based company also said it’s now booking annualized revenue of $47 billion from selling its Claude subscriptions to businesses and individuals who use it to write code and perform work and personal tasks.
Dario Amodei, the company’s current CEO, formed Anthropic alongside several other ex-OpenAI employees in 2021.
He captured the nation’s attention a few months ago after refusing to allow the Defense Department to use Anthropic’s AI technology to power fully autonomous weapons and perform mass surveillance of Americans.
President Trump later ordered government agencies to stop working with the AI company, canceling more than $200 million in federal contracts. Defense Secretary Pete Hegseth also labeled Anthropic “a supply chain risk to national security.”
