Anthropic IPO draws heavy demand as founders sell $1.75bn in stock

Anthropic's initial public offering has attracted orders several times the number of shares available, according to Bloomberg, as co-founders sell $1.75 billion in stock ahead of a pricing date set for November 18. The oversubscribed deal is driven by large anchor investors, with bankers reportedly preparing to raise the valuation to $1.5 trillion or more, exceeding the $1.4 trillion ceiling set on November 10. The company disclosed a third-quarter operating loss, citing $5 billion in compute costs and a $2 billion staff donation-matching charge, while adjusted operating margin fell to 15% from 19%. The seven co-founders are selling roughly 1.5% of their stakes each, with all pledging to give away 80% of personal equity. Retail offerings are underway in Europe, Australia, and Japan, while Nvidia plans a $10 billion private placement. Analysts are divided on whether the IPO will validate AI valuations or trigger a market correction.