Anthropic prepares IPO as revenue growth slows and public benefit pledge expands

Anthropic's pitch to prospective shareholders rests on rapidly rising revenue. But the pace of that growth has become a central issue ahead of its planned initial public offering.

The company told investors that third quarter revenue reached $16.8 billion, up 45% from the previous quarter, according to 3DNews. That followed revenue more than doubling in the second quarter. The figures describe a business still expanding quickly, but no longer at its earlier pace.

The wider market adds pressure. Bloomberg Technology reported on October 15 that risks were threatening to stall the US IPO pipeline, leaving Anthropic's potential debut among the few major offerings investors could count on.

On October 15, Business Insider reported that Anthropic's crackdown on rivals distilling its models may have hurt revenue growth. Some revenue had come from those rivals, making the crackdown a possible contributor to the slowdown rather than an established explanation.

Safety concerns also reached the listing debate that day. Bloomberg.com reported that New York City's comptroller had called for Anthropic to pause its IPO over AI safety. By October 16, MarketWatch reported that the company and the comptroller had opened communication about AI's existential risks and their implications for its future stock.

On October 16, 3DNews reported that investors had lowered their expected valuation from $2 trillion to $1.5 trillion. A separate assessment was far more skeptical: The Next Web reported that research firm New Constructs put Anthropic's value at $144 billion. Those are competing assessments, not an agreed offering price.

On October 18, Anthropic announced plans to put 5% of its shares into a new public benefit fund, according to Bloomberg Technology. CNBC International reported that the company said an LLC structure would give it greater flexibility over how the money is used, including potentially addressing AI job disruption.

The following day, The Next Web reported that the plan still required stockholder approval. Al Jazeera reported that possible uses included donations to nongovernmental organizations and direct distributions to specific populations.

Competition for capital continued alongside those plans. On October 20, Business Line - Home reported that OpenAI was seeking $30 billion at a $1.4 trillion valuation ahead of Anthropic's potential listing.

Anthropic is preparing for a listing with strong revenue growth, lower investor valuation expectations and a public benefit commitment that still needs shareholder approval. Its proposed fund is a pledge of shares, not a fixed cash donation.

According to Forbes, Anthropic says roughly 20% of its shares would be dedicated to the public good when the new fund is combined with existing founder and employee pledges. That broader figure should not be confused with the new fund's 5% allocation.

Governance is another issue for prospective shareholders. Technology reported on October 19 that a five-person trust has powers to shape Anthropic's board and block major moves, while the company has shared few details about how it operates.

The immediate questions are whether stockholders approve the fund and what valuation investors ultimately accept for the IPO. The gap between reported investor expectations and the much lower New Constructs assessment shows how unsettled the pricing debate remains.

The fund's eventual spending choices also remain important. The possible uses reported by Al Jazeera range from nonprofit donations to direct distributions, leaving open who would receive support and how the commitment would address AI's effects.