Anthropic, the giant company in the artificial intelligence (AI) space, is planning to launch the biggest IPO in the coming weeks. As this happens, more details, including banker selection and prospectus release date are coming out.
Goldman Sachs and Morgan Stanley scoop major roles
One of the closely-watched move whenever a company as large as Anthropic is going public is the selection of bankers who will lead the process. In this case, there are reports that Morgan Stanley and Goldman Sachs will be the ones to do this. Morgan Stanley will have the “lead left” role, while Goldman Sachs will be the stabilization agent, ensuring that the stock trades well after its IPO.
Other banks expected to participate in this process will be Barclays and JPMorgan. Eventually, all these companies will likely share over $500 million in fees. In the last SpaceX IPO, they shared a pool of $500 million, with Goldman Sachs and Morgan Stanley taking $100 million each.
Anthropic prospectus may come as soon as this week
Another important aspect is the filing of the prospectus, which is normally known as the S1. This is an important document that shares all the vital details in a company. It includes details such as its business process, profits, revenues, and its free cash flow.
The document is vital because Anthropic has been a private company and has not been obligated to release any documents. With it going public, it will now need to provide more information to help investors make solid decisions.
The prospectus will also help it during its roadshow, a process where the management talks to investors. According to the FT, this prospectus will be filed with the SEC as early as this week.
Anthropic total addressable market (TAM)
Anthropic has made several important announcements in the past few months. For example, the management sees the total addressable market at $30 trillion, higher than SpaceX’s $28 trillion.
The most recent disclosures also showed that its revenue continued soaring this year, with the revenue run rate hitting $65 billion at the end of July. That was a sevenfold increase from a year ago, and is higher than what OpenAI made.
Anthropic has overtaken OpenAI by focusing on its models, which are the most advanced in the industry. This growth helps it charge more money than OpenAI by focusing on corporate clients.
The risk, however, is that its growth is coming at an enormous cost, with the company spending billions of dollars a month. It is paying SpaceX over $1.5 billion a month for computing capacity and has inked more deals recently.
The upcoming Anthropic IPO will benefit some of its biggest investors. Amazon’s stake in the company will be over $400 billion thanks to its $8 billion investment. Other companies set to benefit are Google and Nvidia.