Anthropic IPO Could Boost Amazon and Alphabet Earnings

Anthropic is planning an initial public offering (IPO) this fall, aiming for a $2 trillion valuation and seeking to raise $100 billion in newly issued shares. This would be a record-breaking IPO, eclipsing Space Exploration Technologies' June deal worth $1.77 trillion.

Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL), two tech giants, hold significant stakes in Anthropic. These investments could significantly boost their fourth-quarter earnings, depending on the timing of the IPO.

A successful IPO would be great news for existing shareholders of Amazon and Alphabet. If Anthropic doubles its value from its last raise with its IPO, both companies are poised to book tens of billions, if not hundreds of billions, in additional unrealized gains on the stock and convertible notes they hold. This will boost their Generally Accepted Accounting Principles (GAAP) net income.

The long-term impact could come from the additional capital Anthropic receives to invest in improving its AI models. As a large customer of both Google Cloud and Amazon Web Services, this could benefit both companies. Alphabet has taken steps to strengthen its ties to Anthropic, including selling custom AI accelerator chips directly to the AI lab.