Anthropic has set its target price (opens in new tab) range at $70 to $78, valuing the company at up to roughly $1.4 trillion. The valuation would make it one of the largest IPO valuations to date, though it falls short of the number some bankers have suggested.
A few months ago, investors projected (opens in new tab) the company could carry a $2 trillion valuation, which would be the largest ever for a company hitting the stock market, beating out SpaceX’s $1.77 trillion market capitalization at its June IPO. Investors began lowering their expectations to $1.5 trillion last month. By November, some were even calling (opens in new tab) that a stretch.
The change in expectations came after a volatile couple of months, with investors increasingly concerned about AI spending and data centers, a stock market drop after the midterm elections, and concerns about foreign espionage at the highest levels of tech — Nvidia’s stock dropped after its CEO revealed an affair with a woman suspected of spying for China.
While lower than some previous expectations, the valuation, which is determined by the company and underwriting banks, speaks to investors’ appetite for AI and could bolster Anthropic’s argument that its technology will transform every industry. When Anthropic, which is only five years old, last raised money in the private market in May, its valuation was $965 billion.
