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Anthropic's IPO valuation under scrutiny as investors weigh $1.5 trillion

Anthropic, maker of the Claude chatbot, shared third-quarter results with prospective investors, reporting $16.8 billion in revenue and 45% growth, a slowdown from earlier. Some investors want a valuation near $1.5 trillion rather than the $2 trillion target.

By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .

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What happened

Anthropic, the AI developer behind the Claude assistant, told prospective investors in San Francisco that its third-quarter revenue reached $16.8 billion, a 45 percent increase on the previous three months, and that it posted an adjusted profit. Growth has slowed sharply from the prior quarter's surge, and some investors are reportedly pushing for a $1.5 trillion valuation instead of the $2 trillion target. Brad Gerstner of the hedge fund Altimeter has predicted the offering will come in weeks rather than months, citing more than $500 billion in investor demand.

Why it matters

Cooling growth and a tougher market are reportedly lowering expectations for the valuation of the planned offering.

Timeline

  1. Oct 14, 9:44 PM ET: Reports said Anthropic's revenue had surged to nearly $17 billion and that the company turned a profit in the last quarter.
  2. Oct 15, 7:23 AM ET: Anthropic told investors it was generating positive free cash flow and could start marketing its IPO as early as the week of Nov. 9.
  3. Oct 15, 5:05 PM ET: Some investors pushed Anthropic to cut its IPO valuation target to $1.5 trillion.
  4. Oct 16, 4:26 AM ET: Brad Gerstner of Altimeter predicted an Anthropic IPO in weeks, not months, projecting over $500 billion in investor demand.

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