$1 Trillion Anthropic IPO Is a Go. Here’s Why I Won’t Touch It
Anthropic filed a confidential S-1 with the SEC on June 1 and targets an October IPO, with secondary-market trading implying a valuation near $1.2 trillion.
If Anthropic and OpenAI both debut near current private valuations, their combined market cap could instantly approach $1.8 trillion.
SpaceX and SK Hynix both tumbled sharply after their IPOs, warning that even high-demand AI listings can collapse once public-market valuation scrutiny begins.
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The artificial intelligence boom has created a new class of technology companies that are skipping traditional growth milestones and moving straight into trillion-dollar conversations. Nvidia ( NASDAQ:NVDA ) became the first major AI winner, reaching a market value of $5 trillion as demand for its chips exploded. Now the next phase of the AI race is moving from infrastructure providers to the companies building the models and software that power the technology.
That shift has placed Claude AI creator Anthropic directly in the spotlight. The company appears to be moving closer to an initial public offering that could rank among the largest technology listings ever. But while the numbers are eye-catching, investors should remember that the biggest opportunities often come with the biggest expectations.
Anthropic quietly filed a confidential S-1 registration statement with the Securities and Exchange Commission on June 1, marking the first formal step toward becoming a publicly traded company. A confidential filing does not guarantee an IPO, but it signals that management is preparing the financial disclosures and regulatory groundwork needed for a listing.
The enthusiasm surrounding Anthropic comes from the rapid adoption of its Claude family of AI models and its push into agentic AI tools -- software capable of completing tasks with less human direction.
That growth helped drive Anthropic's most recent private funding round, which valued the company at approximately $965 billion. For comparison, that puts Anthropic's private valuation near the market capitalization of some of the world's largest companies.
Private-market trading has pushed those expectations even higher. Secondary-market transactions involving Anthropic shares have reportedly implied a valuation near $1.2 trillion, suggesting some investors already expect the company to enter public markets as a trillion-dollar business.
The numbers show how quickly investors have priced in years of future AI growth.
The race for the 'AI brain' just hit a $1.2 trillion fever pitch, but recent market tremors suggest this massive IPO isn't a guaranteed win. © 24/7 Wall St.
Anthropic is not alone in preparing for Wall Street. OpenAI has also reportedly begun moving toward an IPO, setting up what could become a defining moment for the artificial intelligence industry. If both companies entered public markets near current private valuations, their combined value could approach roughly $1.8 trillion.
That would create a rare situation where two companies built almost entirely around AI software could instantly rank among the largest public companies in the world. Ahead of the SpaceX ( NASDAQ:SPCX ) IPO last month, prediction markets on Polymarket suggested traders believed Anthropic alone could potentially reach a valuation as high as $1.8 trillion.
The appetite for AI exposure is clear. The question is whether public-market investors will pay private-market prices.
The path to an Anthropic IPO has not been without obstacles. A selloff in memory chip stocks last month raised questions about whether enthusiasm for AI spending was beginning to cool. Companies tied to the AI infrastructure boom, including memory suppliers, saw valuations pressured as investors questioned whether massive AI investments could generate returns quickly enough.
That uncertainty sparked speculation that Anthropic could delay or reconsider its IPO plans.
However, Bloomberg recently reported that Anthropic appears to remain on track for a potential October listing, with executives beginning investor meetings ahead of the expected offering. That timing matters because recent IPO performance suggests investors may want to avoid rushing into the first day of trading.
Following their listings, both SpaceX and SK hynix ( NASDAQ:SKHY ) tumbled hard as early enthusiasm faded. It indicates that even popular AI-adjacent companies can face selling pressure once public investors begin valuing them against real-world financial expectations.
The lesson for investors is simple: a great company does not always mean a great IPO price.
Anthropic's IPO appears to be moving forward, and a trillion-dollar valuation is no longer just speculation. Claude's adoption, agentic AI growth, and private-market pricing all point to enormous investor demand.
That said, investors should remember what happened after recent high-profile IPOs. Buying into a company like Anthropic at the opening price could mean paying for years of future success today.
In short, Anthropic may become one of the most important AI companies in the world. But smart investors may want to watch the first few quarters of public results before jumping in. The AI opportunity is real, but valuation still matters.
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