Anthropic’s bankers are mulling whether to raise the AI lab’s IPO price, betting on bumper demand that could transform the fortunes of its founders and rivals alike. The potential increase, reported by the Financial Times, would up the firm’s valuation to $1.5 trillion, with Anthropic aiming to use additional funds to pay for compute spending.
The IPO would leave its seven founders each with $18 billion stakes, and also looks set to benefit Big Tech firms Alphabet and Amazon, both of which invested in Anthropic and could eventually hold 27% of the company, The Information noted. Rival frontier AI lab OpenAI, meanwhile, reportedly told investors its revenue grew around 50% quarter-on-quarter to $10 billion, but operating losses also increased.
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US President Donald Trump threatened to double tariffs on Mexico if it doesn’t stop a migrant caravan heading for the border, ratcheting up tensions with the US’ biggest trading partner.
Illegal crossings of the US-Mexico border have plummeted during Trump’s second term partly because Mexico, which sends the vast majority of its exports to its northern neighbor, has deployed troops to stem the flow and win over the White House.
The Democratic Party’s recent electoral victories have lifted hopes of a warmer US welcome among would-be migrants. However, Trump’s elevation of Stephen Miller — the architect of Washington’s draconian approach to immigration, including divisive raids — to become the president’s chief of staff has dashed hopes of a friendlier policy any time soon.
Anthropic’s IPO is reportedly six times oversubscribed, reflecting bullishness on the AI trade despite recent headwinds. Fears of overspending and soaring debt piles have led investors to pull out from tech stocks in recent weeks, with the Nasdaq index registering its biggest monthly loss in over a year in October.
The resignation of the CEO of Nvidia, a firm that has underpinned much of the global AI buildout, has amplified concerns. However, some investors appear undaunted, likely owing to upbeat predictions for future growth: Goldman Sachs, one of the banks leading Anthropic’s IPO, said it expected the firm’s revenue to exceed $600 billion by 2030, more than 130 times its sales last year.
