WSJ: Large investors want Anthropic IPO priced at $1.5 trillion to $1.6 trillion
WSJ reports that large investors want Anthropic's IPO priced at $1.5 trillion to $1.6 trillion, below the nearly $2 trillion discussed in previous months. The revised prospectus shows that Anthropic's third-quarter revenue rose from $1.16 billion to $1.7 billion, but spending grew faster, with an operating profit of $974 million turning into an operating loss, mainly due to higher costs for $5 billion in compute purchased under short-term terms. Its total long-term commitments amount to about $895.4 billion, almost all for compute and infrastructure, of which $447.5 billion is expected to be spent before 2031.
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The original article disclosed Anthropic's IPO pricing range along with revenue, loss, and compute commitment figures from its revised prospectus, which can be used to observe its listing valuation and cost structure.
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WSJ: Big investors want Anthropic’s IPO priced at $1.5T to $1.6T, below the nearly $2T discussed for months.
Some floated $1.5T after its October investor day, and last week’s double-digit falls in Alphabet and Intel hardened that view.
specially after Anthropic's amended prospectus that shows Q3 revenue of $17B, up from $11.6B, but expenses rose faster, turning a $974M operating profit into an operating loss.
That loss stems mainly from $5B of compute bought on short-term terms, which costs significantly more than multiyear contracts.
The longer-term bill is far larger: commitments total about $895.4B, almost all for compute and infrastructure, with $447.5B expected before 2031.
Some investors trust finance chief Krishna Rao to price low enough for a first-day jump that could lift a $1.5T debut to $2T.