Anthropic is targeting the biggest IPO in history. Reportedly, the company is planning to raise as much as USD 100 billion at a valuation of around USD 2 trillion. In the market, this IPO created waves, and NVIDIA is reportedly considering investing as much as USD 10 billion in the company as part of the deal. The plan is not final yet and could still change.
The possible investment shows how close NVIDIA and Anthropic have become. In recent years, Anthropic became one of the biggest clients of NVIDIA chips. Therefore, NVIDIA becoming one of the early investors in the IPO shouldn’t be a big deal.
The two firms are also expanding their wider partnership. Anthropic agreed to buy USD 30 billion in Microsoft Azure computing capacity powered by NVIDIA chips. Amazon and Google are also backing Anthropic with major resources. The company plans to spend more than USD 100 billion on Amazon’s AWS over 10 years and also secured more computing capacity through Google.
Anthropic needs more computing power as demand for its Claude AI models rises. The company raised USD 65 billion in May at a valuation of USD 965 billion. Its annual revenue run rate had also crossed USD 65 billion by July.
The growing ties show how much AI firms now depend on chips and cloud services to expand. NVIDIA stands to gain as Anthropic needs more computing power to train and run its models.
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Anthropic’s possible USD 100 billion fundraising could make it one of the largest IPOs ever. A USD 2 trillion valuation would also show how strong investor interest in AI remains.
NVIDIA’s possible USD 10 billion investment could give the IPO a major boost. It would also deepen the link between the company building AI models and the company supplying much of the hardware needed to run them.
Anthropic’s market debut could become a major test for the AI boom. Its valuation will show how much investors are willing to pay for the next generation of AI companies.