Anthropic has engaged a law firm to prepare for a potential IPO as early as next year, sparking its race to the public markets with OpenAI. Meanwhile, Anthropic is seeking a funding round that values the company at over USD 300 billion, underscoring the significant capital demands within the AI sector. Regardless of who goes public first, it will test investor appetite in the public markets for high-growth, high-investment AI startups and could become one of the largest IPOs in history.
The race to go public between artificial intelligence giants OpenAI and Anthropic is becoming a focal point for the capital markets, as both companies are exploring the possibility of going public.
The latest development in this race is that, according to a recent report by the Financial Times, Anthropic, the developer of the AI large model Claude, has taken concrete preliminary steps by hiring Wilson Sonsini law firm to prepare for a potential IPO that could rank among the largest in history.
This move is being interpreted by the market as a potential acceleration signal for AI giants' public debuts, with its IPO possibly occurring as early as next year. Whether OpenAI or Anthropic goes public first, it will serve as a critical test of the public market's willingness to invest in AI startups that are loss-making but experiencing rapid growth, setting the tone for other highly valued private tech companies considering an IPO.
Adding weight to this high-stakes race, Anthropic is reportedly also in negotiations for a new round of private financing, which could value the company at over a staggering $300 billion. This figure underscores the enormous capital appetite within the sector and signals the potential for its IPO to be one of the 'most expensive' ever.
Capital Needs Drive the Pace of Going Public
Unlike other tech giants such as Stripe and SpaceX that have delayed their IPOs, AI companies may have stronger incentives to enter the public market.
The core driver lies in their capital-intensive business models. Developing and training advanced artificial intelligence models requires significant computational power investments and continuous R&D expenditures. An IPO can open doors to individual investors and more public funds, providing a broader financing channel than the private market.
The current bullish sentiment in the market towards artificial intelligence concepts also creates a favorable window for IPOs. Lise Buyer, partner and founder of IPO advisory firm Class V Group, commented on the entire AI industry: "It's clear that they are growing rapidly, and it's also evident that they need incremental funding."
She added that discussing potential IPOs or other exit strategies helps companies secure late-stage financing because "people want to see returns on their money."
IPO Timeline: Next Year or Beyond?
Although Anthropic has taken the first step, the exact timeline for its IPO remains uncertain. According to the Financial Times, its IPO 'could take place as early as next year.'
However, some industry observers hold a more cautious view. They speculate that an IPO for these AI giants may not occur until 2027 or later, noting that hiring a law firm is typically a very early step in the IPO process, often years away from an actual debut.
Dual Challenges of Mega Fundraising and Complex Equity Structures
Once these AI giants decide to go public, they are likely to seek substantial fundraising, which itself comes with challenges. Lise Buyer pointed out that if too many new shares are injected into the market, 'you face the question of where subsequent demand will come from.' Balancing financing needs with market capacity will be a critical issue they must address.
Another complicating factor lies in their equity structures. Since the implementation of the JOBS Act in 2012, private companies with over 500 shareholders are no longer required to go public. This has led to many large private companies having thousands of shareholders, many of whom acquired their stakes through secondary market transactions.
While this reduces the urgency for companies to go public, it also means that once an IPO occurs, there will be a significant number of shareholders looking to sell their shares. Companies will need to carefully manage lock-up agreements, and Lise Buyer noted that 'for these mega-companies, navigating the legal details to secure all lock-up agreements is far more complex.'
Market Barometer: Testing Investor Sentiment
Regardless of who crosses the finish line first, the IPOs of OpenAI or Anthropic will be seen as key indicators for the entire tech industry. Investors have long been waiting for the public listings of 'super unicorns' such as Stripe, SpaceX, and Databricks, but most predictions have remained speculative.
Thus, an IPO in the AI sector will serve as the first major test of the true value of a new generation of tech giants in the public market. These AI startups are currently operating at a loss, making this test even more indicative. Their performance will directly impact investor confidence in the broader AI sector and provide important market reference points for other tech companies awaiting IPOs.
Editor /rice
