Meanwhile, The Wall Street Journal reported that some investors are advising Anthropic to target a lower IPO valuation of $1.5 trillion to $1.6 trillion.
- Anthropic’s sales rose 47% sequentially in the third quarter, a steep drop from 144% growth in Q2 and 132% in Q1.
- The filing comes as tech stocks - particularly those that supply AI and data center infrastructure - have been depressed over the past month over AI spending fears.
- Anthropic plans to kick off its investor roadshow, according to reports.
Anthropic’s updated S-1 filing, released Monday, showed slowing sales growth, rising costs, and growing future spending commitments, raising concerns as broader AI spending risks weigh on tech stocks.
The filing came as a news report said some investors were advising the AI startup to target a lower valuation of $1.5 trillion to $1.6 trillion at its initial public offering, down from the $2 trillion valuation discussed earlier.
Anthropic’s Current Financial Position
Anthropic generated roughly $17 billion in revenue in the third quarter, the filing showed. While up about 1,127% the corresponding quarter last year, it slowed on a quarter over quarter basis. Sales rose 47% sequentially, a steep drop from 144% growth in Q2 and 132% in Q1.
The company expects to incur nearly half the $895.4 billion in spending commitments related to AI infrastructure buildouts before December 31, 2030, with about $69.8 billion due in the 12 months following September 30 this year.
The company reported a net loss of $23.29 billion during its third quarter. It reported an operating loss of $567 million loss compared to a $974 million operating profit in Q2.
In the updated S-1, Anthropic disclosed spending commitments totaling $895.4 billion, which stretch as far as 2045. That is above the $800 billion or so that analysts were able to gather from the initial draft prospectus, according to the Wall Street Journal.
The company is due to spend nearly half of that amount by December 2030, including about $69.8 billion in the 12 months following September 30 this year. Anthropic said it has $146.6 billion in cash on hand and other liquid assets.
Investors Push Lower IPO Valuation For Anthropic
In the past several days, institutional investors have told Anthropic and its advisers that the company’s IPO valuation should be around $1.5 trillion to $1.6 trillion, The Wall Street Journal reported on Monday, citing people familiar with the matter.
The investors cited a list of concerning factors including choppy markets, overexposure to AI bets, political backlash to data centers and uncertainty around how soon hyperscalers such as Amazon and Meta Platforms could show AI-related profits.
The development comes as tech stocks - particularly those of companies that supply AI and data center infrastructure - have been depressed over the past month or so. The rout intensified last week after Amazon, Intel and Alphabet reported disappointing results.
Anthropic IPO Watch
Amazon (AMZN), Alphabet (GOOGL), and Nvidia (NVDA) are major investors in Anthropic and stand to reap a windfall from its IPO.
Anthropic is planning to kick off the investor roadshow, according to reports. Anthropic's latest private market valuation was $1.41 trillion, according to Nasdaq Private Market. On Stocktwits, retail sentiment for the ticker was ‘bearish.’
A trader speculated that Anthropic could start trading on the exchanges as early as Nov. 12.
“The most recent financials in an effective S-1 filing cannot be more than 134 days old. The latest financials in Anthropic’s S-1 filed this morning are June 30. So, June 30 plus 134 days gets to November 11 for the latest possible effectiveness date of the S-1… If they don’t go effective and start trading by then, they’ll have to amend the S-1 to include Q3 financial statements and disclosures (highly unlikely IMO),” they said.
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