Anthropic's IPO Imminent: Amazon and Alphabet Reap Rewards

The long-awaited IPO of AI company Anthropic is imminent, but for now, individual investors can't buy shares. However, there's another way to own a piece of Anthropic: buying stock in companies that already have a stake in it.

Two tech giants, Amazon (AMZN) and Alphabet (GOOG), are among the major investors in Anthropic, having committed significant sums to the AI company. Amazon made an early $8 billion investment, which was followed by another $5 billion in April, with a promise of up to $20 billion more if certain commercial milestones are met.

The value of Amazon's stake in Anthropic has skyrocketed from over $74 billion in the first quarter to a potential one-quarter of Anthropic's current valuation of $965 billion. In contrast, Alphabet committed 'up to $40 billion' in investments, consisting of a $10 billion upfront investment and an additional $30 billion contingent on performance milestones.

As Anthropic prepares for its IPO, Amazon and Alphabet shareholders are already benefiting from the AI company's success. Both companies have seen significant revenue growth attributed to their involvement with Anthropic, with Amazon's AWS cloud computing arm and Alphabet's Google Cloud Platform experiencing rapid expansion.