Anthropic Cuts IPO Fundraising Size to $64.4 Billion as Alphabet, Nvidia and Other Giants Plan to Inject $26 Billion

TradingKey - Anthropic is adjusting its IPO fundraising plan, according to an updated draft prospectus reviewed by Reuters on Tuesday, which shows the artificial intelligence company is preparing to launch its IPO roadshow with plans to offer 825 million shares at an indicative price range of $70 to $78 per share. At the top end of the price range, the public offering could raise up to approximately $64.4 billion, down from the $69.3 billion disclosed in a previously withdrawn version.

In addition to the public offering, Anthropic also plans to raise $26 billion from strategic investors through a separate private placement. Companies intending to participate in the deal include Alphabet (GOOGL), Nvidia (NVDA), Microsoft (MSFT), Advanced Micro Devices (AMD), Broadcom (AVGO), Micron Technology (MU), and TSMC (TSM), spanning key sectors including cloud computing, AI chips, wafer fabrication, and memory. If both the IPO and private placement are completed at their maximum sizes, Anthropic's total listing-related fundraising could reach $90.4 billion.

The collective participation of these tech giants in the placement not only provides Anthropic with additional capital, but also reflects the desire of upstream and downstream players in the AI value chain to further tie into its model, computing power, and infrastructure needs. Google and Microsoft operate large cloud computing platforms; Nvidia, AMD, and Broadcom are major suppliers of AI chips and networking equipment; while Micron and TSMC cover memory and advanced process manufacturing, respectively. By holding shares in Anthropic, these companies could further solidify their partnerships with it across computing power procurement, cloud services, and chip supply.

For Anthropic, bringing in strategic industry investors also helps enhance offering certainty. Amid recent heightened volatility in tech stocks and investors reassessing AI valuations and cash burn rates, locking in large-scale strategic capital ahead of time reduces the IPO's reliance on public market subscription demand. However, commercial partnerships may exist between private placement investors and Anthropic, meaning their appetite for subscription does not fully equate to broader institutional endorsement of the company's valuation.

The lowering of the IPO fundraising ceiling in the latest plan also indicates that the company is beginning to respond to market concerns over the offering size and valuation. Anthropic was previously expected by the market to reach a valuation of approximately $2 trillion. However, as financing costs for AI infrastructure rise and investors place greater scrutiny on losses, free cash flow, and long-term capital expenditures, market sentiment toward high-valuation tech stocks has turned increasingly cautious.