Anthropic's $1.4T IPO puts AI economics under the microscope

Anthropic's proposed IPO, valuing the AI company at up to $1.4 trillion, will put the industry's economics under public scrutiny, with pricing expected on November 18. Julius Baer analyst Enrico Chinello identifies three key variables for investors: sustained demand growth from enterprise adoption, pricing power amid falling model costs, and capital intensity from large compute commitments. The valuation is below earlier reported expectations. Anthropic's revenue reached $33 billion in the first nine months of the year, a 13-fold increase. The listing could also establish a valuation benchmark for OpenAI's expected 2027 IPO.