Nvidia and Alphabet Just Agreed to Buy $10 Billion Each of Anthropic Stock at Its IPO Price
The Motley Fool ·
Key points
- Anthropic disclosed an IPO plan pricing range of $70 to $78 per share for 825 million shares and a Nasdaq listing under the ticker ANT.
- A concurrent private placement amounts to $26 billion in total purchases, with Nvidia and Alphabet each contributing about $10 billion at the $74 midpoint, equating to roughly 1% of the anticipated outstanding shares.
- At the stated prices, Nvidia would hold about 143 million shares if the price is $70 and about 128 million shares at $78, all in Class N stock generally without voting rights.
- The private placement closes after the IPO and is subject to Anthropic stockholder approval, with two of the seven purchases tied to prior financing and supply arrangements.
- Anthropic’s revenue surged to $33.2 billion for January–September, far above the prior year’s $2.5 billion, with projected 2024 revenue of $386 million and 2025 revenue of $4.6 billion, while nine-month operating loss narrowed to $1.3 billion.
- Nvidia’s balance sheet shows $56.6 billion in cash and marketable securities, nearly $70 billion in free cash flow for the first half of the fiscal year, and $99 billion in equity investments, amplifying the earnings impact from gains in that portfolio.
- Anthropic trains and serves Claude on a mix of hardware from Nvidia, AMD, Google TPUs, and AWS Trainium, emphasizing a multi-vendor approach to reduce dependence on a single supplier.
Summary
Anthropic set an IPO range of $70–$78 a share for 825 million shares, with a private placement of $26 billion already committed by seven firms. Nvidia and Alphabet each agreed to invest about $10 billion at the IPO price, valuing their stakes around 1% of the company’s expected 13.1 billion shares, via Class N stock with limited or no voting rights. The move underscores a strategic, sizable but not market-changing bet from tech giants, while Anthropic’s revenue growth and profitability swing remain separate from Nvidia’s core chip business. The investment signals confidence in Anthropic’s long-term AI stack, but near-term stock performance and chip demand will largely drive Nvidia’s optics and returns. Looking ahead, the deal adds capital flexibility for Anthropic and keeps Nvidia closely tied to AI hardware and software cycles, with the macro picture still heavily contingent on chip sales momentum.
This summary was written with AI. The full story has every detail.