Amazon Offers Hidden Route to Invest in Anthropic Ahead of IPO

The artificial intelligence (AI) start-up Anthropic is reportedly planning to go public in November, after speculation swirled around an initial public offering (IPO) in September or October. The company's advisors suggested waiting until November to showcase its competitive position in the AI space through its third-quarter financials.

Investors may be able to invest in Anthropic directly when it debuts on the public markets, but this approach may not be ideal for everyone. Depending on demand, it may initially be difficult to fill full orders at certain prices, and investors should be prepared for early volatility, as seen with SpaceX's IPO.

Another way to invest in Anthropic is through Amazon (AMZN), which holds a significant stake in the company. In 2023, Amazon invested $8 billion in Anthropic, followed by an additional $5 billion in 2026 and a commitment to invest up to $20 billion more. This investment gives Amazon a financial interest in Anthropic's success while also providing it with exposure to the AI market through its cloud services.

The relationship between Amazon and Anthropic is two-way, as Anthropic has committed to using Amazon Web Services (AWS) technologies to train and run its Claude model. This partnership provides Amazon with a potential source of revenue if Anthropic succeeds in developing advanced AI models.