Anthropic is pursuing a stock market valuation of up to $1.4 trillion as investors weigh its rapid revenue growth against the enormous cost of expanding its artificial intelligence business, Reuters reported Tuesday.

The company behind the Claude chatbot has launched presentations to prospective investors ahead of a planned Nasdaq debut on November 19. Its offering comes during a technology stock selloff that has sharpened questions about whether AI companies can generate sufficient returns to justify their spending.

Together, the initial public offering and a separate private investment deal could raise up to $90.4 billion, including proceeds for existing shareholders selling part of their stakes.

Revenue surge accompanied by vast spending commitments

Anthropic's annualized revenue run rate reached approximately $81 billion on October 31, an increase of $10 billion from the end of September, according to its IPO filing. The figure reflects revenue at its recent pace rather than the amount collected over a full year.

Sustaining that expansion requires substantial computing resources. The company has committed nearly $900 billion to computing arrangements with partners including Amazon and Google, with some future capacity dependent on financing outside Anthropic's control.

Those obligations have drawn attention to the gap between strong demand for AI products and the expense of delivering them, particularly as elevated interest rates increase borrowing costs.

"Anthropic could become an exceptionally successful company, but at this valuation, much of that success is already reflected in the price," said Varun Datta, venture capitalist and founder of Truth Ventures.

Revised offering sets lower fundraising target

Anthropic and participating shareholders plan to offer 825 million shares at between $70 and $78 each, generating as much as $64.4 billion. The stock is expected to trade under the ticker “ANT.”

At the upper end of that range, the company's valuation would reach around $1.4 trillion when options, restricted stock and other relevant securities are included. Excluding those securities, its equity value would be approximately $1 trillion.

The proposed terms are less ambitious than preliminary figures circulated to investment banks late Monday and subsequently withdrawn. Those earlier details indicated potential IPO proceeds of $69.3 billion, while Tuesday's updated filing with the US Securities and Exchange Commission lowered both the price range and the fundraising target.

"By seeking a valuation close to 20% below 'market expectations', this allows investors to 'bid up' the IPO rather than facing a take-it-or-leave-it scenario like SpaceX took," said Jeff Zell, senior research analyst at IPO Boutique.

Anthropic was valued at $965 billion in its most recent private funding round.

Major technology firms back the listing

A separate private placement will provide $26 billion from cornerstone investors, including Google, Nvidia and Advanced Micro Devices. Other participating companies include Broadcom, Micron Technology, Microsoft and TSMC.

The listing's reception could influence expectations for rival OpenAI, which is seeking $30 billion in private funding ahead of a possible IPO early next year.

Anthropic's prospectus paired its ambition to "bring forth an age of miracles" with warnings about existential risks, competitive pressure and the difficulty of maintaining adequate safeguards as AI capabilities advance.

The company cautioned that rivals could develop models more quickly and that technological progress could exceed its ability to implement sufficient safety and security measures. Investors are also assessing whether tighter oversight could hinder the infrastructure expansion underpinning the industry.

Founded in 2021 and led by Dario Amodei, Anthropic has appointed Goldman Sachs and Morgan Stanley as the offering's lead underwriters.

Read more: Anthropic IPO filing exposes AI risks despite soaring sales