Anthropic IPO Set to Deliver Big Wins for Amazon and Alphabet Investors

Nvidia is making a major bet on Anthropic, investing $10 billion at a valuation of $2.3 trillion. However, this investment is relatively small compared to the massive sums already invested by Amazon and Alphabet, which have stakes in the company worth tens of billions.

Anthropic's IPO is expected to be one of the largest ever, potentially surpassing SpaceX's record-breaking debut. The company has grown rapidly, with Q2 revenue increasing 14-fold from $787 million a year ago to $11.5 billion. Its adjusted gross margins are above 80%, and it recorded an adjusted operating profit in the quarter.

The two companies that stand out as Anthropic's early backers are Amazon and Alphabet. Amazon has invested $18 billion, with another $15 billion contingent on hitting certain milestones. At the end of Q2, its investment was worth $190.4 billion, representing an approximate 20% stake. Alphabet has also been a big investor, pouring in $13.3 billion, with another $30 billion in commitments dependent on commercial benchmarks.

The massive compute commitments made by Anthropic to Amazon and Alphabet will provide the companies with the currency to continue their aggressive AI infrastructure investments. The company has committed to spending $517 billion over the next several years, with a significant portion going to Amazon and Alphabet.