The planned initial public offering of Anthropic could value the artificial intelligence company at close to $2 trillion as its revenue growth accelerates, according to press reports. As of Sept. 19, however, Anthropic had not publicly filed an S-1 registration statement — the disclosure document a US company must file with the Securities and Exchange Commission before its shares can be offered to public investors. When that filing arrives, it would be the first official source for the offering's final terms and timing.

The company's annualized revenue run rate reached about $65 billion by July. Anthropic has also told investors it expects to post positive adjusted operating income for a second consecutive quarter, a measure that excludes stock-based compensation, an expense that standard accounting rules count against earnings.

A Record-Setting Market Debut

According to reports, the offering would mark a historic milestone for three reasons. First, it would make Anthropic the eighth-biggest company in the world, behind Nvidia, Apple, Google, Microsoft, Amazon, TSMC, and SpaceX. Second, it would be the fastest company to attain a $2 trillion valuation, having been founded only a few years ago, while each of the other companies in that group needed decades to cross even the $1 trillion mark. Third, it would be the biggest IPO of all time, surpassing SpaceX, which debuted at a $1.8 trillion valuation after raising $85 billion in funds.

Revenue Growth and Early Profitability

The reported valuation reflects Anthropic's competitive standing. The company has overtaken OpenAI thanks to more advanced models — the Artificial Analysis model leaderboard shows Claude as the most advanced model — and it has launched platforms capable of disrupting leading industries such as finance and wealth management.

Revenue growth is accelerating. Reporting by the Financial Times showed revenue surged 14-fold from a year earlier to $11.5 billion. Annualized revenue hit $65 billion in the second quarter, up from $9 billion a year earlier — a more-than-sevenfold increase — according to the Financial Times.

That growth has coincided with profitability. While Anthropic did not disclose profit figures, the company said the expected result would mark its second consecutive quarter of adjusted profit.

Key Concerns Ahead of the Listing

Despite the growth, several concerns hang over the business as it prepares to go public.

The first is Anthropic's expanding investment commitments. The company recently reached a $45 billion deal with Nscale, a firm backed by Nvidia, and a $35 billion deal with Lambda, another Nvidia-backed company. Most recently, it struck a $9.1 billion deal with Riot Platforms — meaning these three named deals alone total $89.1 billion in commitments. It has also reached agreements with companies such as CoreWeave, Fluidstack, and SpaceX. These deals could weigh on its cash flow in the future.

Second, competition in the AI industry is intensifying, with much of the pressure coming from well-funded companies undercutting Anthropic's models on price. Claude Fable 5.1 charges $7.63 per task, while GPT-6 Astra charges $3.26, Meta Platforms' Muse Spark charges $1.6, and Moonshot's Kimi K3 Max charges $2 — putting Anthropic's offering at more than double the rate of GPT-6 Astra and nearly five times that of Muse Spark, the cheapest in this comparison.

Third, OpenAI is staging a comeback after a substantial slowdown. Its recent models have moved closer to par with Claude and other AI companies, which is one reason it is considering a $1.2 trillion IPO of its own. A study by OpenRouter showed OpenAI overtook Anthropic in weekly spend for the first time in two years.

Ongoing AI safety issues present a further risk that could accelerate a slowdown at Anthropic. The company's CEO has already called for the industry to slow down to address these concerns.

Room for Growth

On the positive side, Anthropic has room to expand, including through cheaper pricing and advertising options. The company has also gained significant market share among corporate clients, who are willing to pay more. Many American companies are likely to continue using its models given the potential risks associated with Chinese alternatives.

This article is for informational purposes only and does not constitute financial or investment advice. Stock investments involve risk, and past performance does not guarantee future results. Readers should conduct their own research before making investment decisions.

Source: The Market Periodical