Anthropic said on Tuesday that it will seek to raise up to $62.5 billion in its IPO at a market cap that could top $1 trillion.
Why it matters:This would be one of the largest IPOs ever, but smaller than some had expected.
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SpaceX raised $75 billion earlier this year in the largest U.S. IPO to date.
How it works:As with any IPO, the math is complicated by a number of factors.
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The company is selling about 801.4 million Class A shares at a range of $70 to $78 per share. That's the source of the $62.5 billion figure.
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But there are other classes of stock outstanding too — plus, if the IPO is successful, the underwriters have the option to buy even more Class A stock on top of what's being offered.
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If they do so, when all is said and done, Anthropic says it'll have about 13.09 billion shares of various classes of stock outstanding, which gets to a valuation of around $1.03 trillion.
The companyhas also issued stock options — lots of them, and if those are exercised, more shares will get issued.
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That eventual "fully diluted value" (the value of all shares that could become outstanding), at the higher end of the range, would be around $1.37 trillion.
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There had been earlier speculation that Anthropic could seek a fully diluted valuation of as much as $2 trillion.
What we're watching:Anthropic shares are likely to begin trading sometime next week, amidst wild volatility in the AI trade.
Go deeper: Anthropic's spending commitments surge to nearly $900 billion
This story has been updated with additional details.
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