Anthropic targets record $90 billion IPO valuation

A record-breaking debut

Anthropic, the developer of the Claude AI model, is preparing for an initial public offering that could become the largest stock market debut on record. The company is targeting a total of about $90 billion, which would surpass the record set by SpaceX in June. Trading for the new shares is expected to begin next Thursday.

The demand for the offering is already high, with the deal reportedly oversubscribed several times. This interest is being driven by anchor-sized indications of interest, meaning individual investors are signaling orders large enough to underpin the entire book. This suggests a strong appetite for direct exposure to AI companies.

To reach the $90 billion goal, the company is pricing its shares between $70 and $78. This price range implies a valuation of roughly $1.4 trillion. While this figure is a significant jump from its previous private valuation, it reflects the intense competition and growth in the frontier AI space.

The mechanics of the deal

The listing structure involves a mix of new share offerings and private placements. Anthropic is offering around 801 million Class A shares, while existing investors plan to sell roughly 24 million more. It is important to note that money from the sales by existing holders goes to them rather than to the company itself.

A major component of the $90 billion target is a $26 billion private placement of Class N common stock. This placement involves seven of the most prominent names in the tech industry, including Nvidia, Microsoft, Google, and TSMC. These companies are essentially tying their fortunes more closely to Anthropic's success as shareholders.

The final price will be a critical test of what the public market is willing to pay for a frontier AI developer. Until now, most public investment in AI has been concentrated in the chipmakers and cloud providers that supply the infrastructure. Anthropic's debut will show if investors are ready to value the software and models themselves at a premium.

Market ripple effects

The sheer size of this capital raise could have immediate effects on the broader stock market. Because raising close to $90 billion requires a massive amount of cash, some fund managers might trim their existing holdings in large-cap tech companies to make room. This movement of capital could weigh on the Nasdaq as the final pricing approaches.

The outcome of this IPO is also expected to influence the broader AI investment pipeline. A successful first day for Anthropic would likely support the sentiment for other upcoming debuts, such as OpenAI, which is reportedly aiming for a 2027 listing. Conversely, a weak opening could dampen enthusiasm across all AI-linked equities.

For the seven companies involved in the private placement, the oversubscription is a positive signal. It confirms that public appetite for direct AI exposure remains strong. These companies are positioning themselves as core pillars of the AI economy by securing a stake in one of the industry's leading labs.

Path to the public market

Anthropic is moving quickly to maintain momentum leading up to its debut. To generate interest, CEO Dario Amodei will hold a live-streamed event with JPMorgan Chase CEO Jamie Dimon this Friday. This high-profile appearance is designed to keep the spotlight on the company as it prepares for its transition from a private entity to a public one.

The company's valuation has seen a sharp step up in a short period. In June, Anthropic raised $65 billion at a $965 billion valuation in a round that was described as heavily oversubscribed. The current $1.4 trillion target represents a roughly 45% increase over that previous private market level.

Investors will be watching closely to see if the final price hits the top of the $70 to $78 range. If the company manages to price at the top, it will validate the extreme optimism surrounding frontier AI. The debut will serve as a primary indicator of whether the private-market hype can be sustained by public market participants.