Anthropic Advances IPO Preparations Amid Escalating AI Competition
Anthropic, the AI safety-focused startup behind the Claude chatbot, is gearing up for a potential initial public offering (IPO) as early as 2026, according to a Financial Times report published on December 3, 2025. The company has engaged the law firm Wilson Sonsini Goodrich & Rosati, known for handling high-profile tech IPOs like those of Google and LinkedIn, to guide the process since 2022. This move follows Anthropic's recent $13 billion Series F funding round in September 2025, which valued the firm at $183 billion, and comes as it explores a new private funding round targeting a valuation exceeding $300 billion. Discussions with investment banks for an underwriter role are underway, though no selection has been finalized. Founded in 2021 by former OpenAI executives Dario Amodei and Daniela Amodei, Anthropic has raised over $20 billion to date, backed by major investors including Amazon, Google, and Menlo Ventures, positioning it as a key player in generative AI alongside rivals like OpenAI and Grok.
The preparations involve addressing an internal checklist for regulatory compliance and operational readiness, signaling a strategic pivot toward public markets amid intensifying competition in AI foundation models. However, Anthropic's chief communications officer has clarified that there are "no immediate plans" for an IPO, tempering expectations while acknowledging exploratory steps. This development coincides with Anthropic's first acquisition and ongoing efforts to expand its Claude AI capabilities, underscoring a maturation phase for the four-year-old company.
Anthropic's IPO Ambitions Bolstered by Rapid Revenue Growth, Though Profitability Remains Elusive
Anthropic's preparations for a potential IPO in 2026, gain context from the company's accelerating revenue trajectory, which underscores its competitive positioning in the AI sector amid high investor interest. Founded in 2021, Anthropic has demonstrated substantial financial expansion, with annualized run-rate revenue reaching approximately $1 billion by early 2025—less than two years after its commercial launch. By August 2025, revenue had surged 400% from the prior year's $1 billion, pushing the annual run rate toward $7 billion by October. The firm projects $9 billion in annualized revenue by the end of 2025, escalating to between $20 billion and $26 billion in 2026, and up to $70 billion by 2028, driven by demand for its Claude AI models from enterprise clients.
Despite this growth, profitability has not yet materialized, with Anthropic anticipating a break-even point by 2028—earlier than some peers but still years away amid heavy investments in compute infrastructure and talent. The company's revenue forecasts, revised upward by 13% to 28% over the next three years, reflect optimism in business-to-business adoption, but sustained losses could pose risks in public markets, where scrutiny on unit economics intensifies. This financial profile supports Anthropic's pursuit of a $300 billion-plus valuation in an upcoming private round, potentially paving the way for an IPO that could capitalize on sector hype while highlighting the need for clearer paths to sustained earnings.
Implications for Other AI Foundation Model Providers
Anthropic's IPO pursuit could catalyze a wave of public listings among AI foundation model developers, potentially unlocking billions in capital for scaling compute infrastructure and talent acquisition in a sector facing escalating costs and regulatory scrutiny. For competitors like Grok (xAI), Perplexity, and Cohere, this may heighten pressure to pursue similar paths, as public markets offer valuation benchmarks and liquidity, though at the risk of increased transparency demands on financials and AI safety practices. A successful Anthropic debut at over $300 billion could validate sky-high private valuations, encouraging investors to back more AI startups, but it also risks inflating a perceived "AI bubble" if growth projections falter amid economic headwinds. Smaller providers may face consolidation or funding challenges if market saturation leads to investor caution, while established players could benefit from heightened sector visibility and partnerships.
Comparison to OpenAI's Operations
OpenAI, valued at around $500 billion in recent talks, is similarly testing IPO waters without a set timeline, as reported by Reuters, mirroring Anthropic's preparatory hiring of legal and financial advisors. Both firms, founded by ex-OpenAI alumni in Anthropic's case, share backers like Amazon and Google, and face parallel challenges in monetizing generative AI amid high compute demands. However, OpenAI's internal "code red" warnings and ad testing in ChatGPT indicate a more aggressive commercialization push, contrasting Anthropic's emphasis on safety-aligned AI development. OpenAI's potential $1 trillion IPO target dwarfs Anthropic's ambitions, but both could reshape public markets, with OpenAI's broader ecosystem (e.g., partnerships with Microsoft) potentially affording greater post-IPO stability compared to Anthropic's niche focus on constitutional AI.
xAI IPO Prospects: Speculation Amid Funding Rounds and Valuation Growth
As of December 8, 2025, xAI, the artificial intelligence startup founded by Elon Musk in 2023, shows no immediate plans for an initial public offering (IPO), despite ongoing speculation driven by its rapid valuation increases and the broader AI sector's momentum. The company, focused on developing AI to advance scientific discovery, remains privately held and has prioritized private funding rounds over public listings, according to recent reports and Musk's public statements.
xAI's latest valuation estimates range from $50 billion to $230 billion, following a reported $15 billion funding round in November 2025, which Musk denied on X, clarifying it was not accurate. Earlier in the year, xAI achieved a $50 billion post-money valuation after merging with assets from Musk's ecosystem, positioning it among top pre-IPO AI firms like OpenAI and Anthropic. Prediction markets, such as Polymarket and Kalshi, assign low probabilities—around 4%—to an xAI IPO occurring in 2025, reflecting skepticism amid broader market caution on AI valuations.
References
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Financial Times: Original report detailing Anthropic's hiring of Wilson Sonsini for IPO guidance and plans for a $300 billion-plus private funding round.
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TechCrunch: Analysis of Anthropic's IPO timeline, including comparisons to rivals like OpenAI and insights into its revenue growth.
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Bloomberg: Coverage of Anthropic's fundraising efforts and potential 2026 IPO, highlighting investor interest amid AI sector valuations.
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Reuters: Report on Anthropic's denial of immediate IPO plans while confirming preparatory steps, with context on its $183 billion valuation.
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The Information: In-depth look at Anthropic's revenue projections and implications for an IPO, including break-even forecasts by 2028.