Anthropic's IPO day will test the AI trade. But what happens next matters more. - Yahoo Finance
By Google News AI ·
The response in the days and weeks after Anthropic's (ANTH.PVT) looming initial public offering will be more important to the broader AI ecosystem than the IPO itself, according to former longtime Cisco (CSCO) CEO and JC2 Ventures founder John Chambers.
"I think more important than what [the stock] comes out at is, after the IPO is out, do we see steady gains in terms of this stock and therefore encouraging others to go public and follow forward on it?" Chambers said on Sozzi Unleashed.
Given the rising concerns about the health of the AI ecosystem, it's a coin flip as to how Anthropic's debut on public markets will go — and what the days after will look like.
The model builder did little to quiet down concerns on Monday. In an amended S-1 filing, Anthropic said that third quarter sales rose 1,127% to $17 billion. But revenue growth slowed on a quarter-over-quarter basis.
Third quarter sales increased 47% compared with a 144% growth rate in the second quarter. Sales increased 132% in the first quarter.
The company lost a staggering $23.29 billion in the third quarter.
Investment bankers are reportedly aiming for an astronomical listing valuation of roughly $1.5 trillion to $2 trillion.
Anthropic could debut on public markets before the end of November. It plans to list on the Nasdaq under the ticker symbol ANT.
"The position of Anthropic in terms of long-term leadership is extremely strong," Chambers added.
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Originally published by Google News AI