Anthropic's IPO Prospectus to Flag Public Backlash as Key Risk, Sources Say
Anthropic, the creator of the Claude AI model, is moving closer to a public listing that could rank among the largest in history. According to sources familiar with the matter, the company's CFO, Krishna Rao, has been holding preliminary "test-the-water" meetings with bankers and investors in San Francisco. These sessions are confidential, and the sources spoke on condition of anonymity.
During the meetings, Rao has fielded questions about competition, margin pressure from open-source models, and the potential impact of a slowdown in data center construction, the sources said. The company confidentially filed for an IPO in June, and investors project it could debut at a valuation of about $2 trillion, which would surpass the record $85.7 billion raised by Elon Musk's SpaceX earlier this year through its own AI-focused offering.
Prospectus to Address Public Concerns
A notable aspect of the upcoming prospectus, according to CNBC, is its expected inclusion of public backlash as a "key risk factor." The document is anticipated to explicitly acknowledge that many Americans are fearful and upset about what AI companies are doing, and that this sentiment extends to the data centers that enable such technology.
This reflects a broader societal trend. A Gallup survey published in May found that seven in ten Americans oppose AI data center construction in their area, with nearly half of those opposed saying they are "strongly opposed." Only about a quarter of respondents were in favor.
Politicians on both sides of the aisle have increasingly campaigned against AI and data center development. With midterm elections less than three months away, the issue has gained political traction. Recent examples include Florida Republican gubernatorial primary winner Rep. Byron Donalds, who has proposed restrictions on data centers in the state, and Pennsylvania Democratic Gov. Josh Shapiro, who signed an executive order imposing strict standards on such development.
Public opposition has occasionally turned disruptive. Reports indicate protests against AI and data centers have included multiple incidents involving gunshots and at least one Molotov cocktail, though details remain limited.
Industry Context
Anthropic's move to highlight public sentiment in its prospectus stands in contrast to SpaceX's IPO earlier this year. While SpaceX's filing mentioned AI as a potential future revenue source, it did not focus on public opposition. The document did reference a reliance on natural gas in its regulatory considerations, but not in the context of public outcry over pollution. SpaceX's prospectus also warned that its Grok AI model's "brashness" and ability to create "potential nonconsensual or exploitative imagery" could lead to "reputational damage" or "user or advertiser backlash," but it did not address philosophical opposition to AI itself.
Anthropic, which has topped a $65 billion annual revenue run rate, according to CNBC, is valued at close to $1 trillion in the private market. Like rival OpenAI, it is pushing infrastructure partners to expand data center capacity rapidly, with hyperscalers investing hundreds of billions of dollars this year in capital expenditures for data centers and graphics processing units.
CNBC first reported on the investor meetings and the expected risk-factor disclosure, citing anonymous sources. Anthropic declined to comment when contacted by Gizmodo, which also did not immediately receive a response to its request for confirmation.