Amazon, Google could make over $400 billion from Anthropic IPO
What's the story
Anthropic, the company behind Claude AI, is gearing up for a massive initial public offering (IPO) that could raise $64 billion. If successful, this would value the company at as much as $1.4 trillion. The upcoming IPO has caught everyone's attention due to its potential impact on major tech players like Amazon and Alphabet (Google's parent company).
Stake valuation
Amazon and Alphabet among largest backers
Amazon and Alphabet are among Anthropic's largest backers. If the AI company prices its IPO at the top of its proposed range, their stakes could be worth a whopping $411 billion.
This is according to calculations by Reuters based on an Anthropic filing.
The upcoming IPO could also see seven tech companies, including Google, NVIDIA, AMD, and Microsoft, buy $26 billion of non-voting shares at the IPO price in a separate private placement.
Funding details
Former Google CEO Eric Schmidt invested tens of millions
In May, Anthropic raised $65 billion at a $965 billion valuation. This put it ahead of OpenAI for the first time.
Former Google CEO Eric Schmidt was an early outside investor in Anthropic, investing tens of millions of dollars into its first funding round in 2021.
Amazon has invested at least $13 billion in Anthropic and Anthropic committed to spend over $100 billion on the e-commerce giant's cloud services over 10 years.
Strategic alliance
Google has committed up to $40 billion to Anthropic
Google has committed up to $40 billion to Anthropic, including a $10 billion investment announced in April.
The partnership gives Anthropic cloud infrastructure and access to Google's AI chips for training and running Claude models.
Microsoft also agreed to buy $1 billion of Anthropic's non-voting shares in the company's concurrent private placement at the IPO price.
Investor participation
AMD agreed to buy $2.5 billion of non-voting shares
NVIDIA has agreed to buy $10 billion of Anthropic's non-voting shares with the company's stock market listing. The chipmaker is a leading supplier of AI accelerators for training and running large language models.
AMD has also agreed to buy $2.5 billion of Anthropic's non-voting shares with the company's stock market listing, under a November 2026 agreement that reduced its equity commitment under a hardware supply agreement to $2.5 billion.