Anthropic IPO news: AI giant to raise $25 billion as valuation soars

Anthropic, one of the top players in the artificial intelligence (AI) industry, is considering going public through an IPO later this year. It is also lining up a big capital raise before going public. 

Anthropic to raise funds ahead of its IPO

This year will be a big one for the initial public offerings, with popular names being companies like SpaceX, Anthropic, OpenAI, and BitGo. 

Anthropic, the creator of Claude, a top player in the AI space, will likely receive funding from Sequoia, a top venture capital company known for backing top firms like Google, Stripe, and Apple.

The venture capital company plans to invest $1.5 billion in the company, in a round that Coatue and GIC will participate in. Other venture capital firms will also participate as the company is seeking to raise $25 billion at a $350 billion valuation.

The round will make Anthropic one of the biggest private companies in the world. OpenAI, the creator of ChatGPT, is valued at over $500 billion, while Elon Musk’s xAI has a valuation of between $230 billion and $235 billion. Sequoia has invested in xAI and OpenAI.

Anthropic has raised billions of dollars in the past few years. Its biggest investment came from Amazon, in a deal that deepened its collaboration with AWS. 

More companies like Fidelity, Altimeter Capital, Bailie Gifford, Blackstone, and General Catalyst have all invested in it in the past few years. These companies hope that its IPO will be well-received, a move that will boost their ROI. 

Anthropic is growing and aiming for profitability in 2028

Recent media reports suggest that Anthropic’s business continues to grow as businesses embrace its solutions. A report by Reuters noted that the company generated an annual run rate (ARR) of $9 billion in 2025, a figure that may jump to $20 billion this year.

Another report showed that the company expects to make $70 billion in 2028 and a free cash flow (FCF) of $17 billion. This growth is being fueled by its business and Claude Code solutions. 

Its business solutions have seen it partner with top companies like Microsoft, Cognizant, Deloitte, IBM, Allianz, and Salesforce. It now has over 300,000 corporate clients.

Anthropic is aiming to break even in 2028, thanks to its relatively frugal spending compared to OpenAI. For example, the company has largely avoided the costly forays into image and video generation that require more spending power. 

Data shows that OpenAI has committed to spending over $1.4 trillion in data centers. It has already made large commitments with companies like Oracle, Broadcom, and CoreWeave. 

A report by The Information estimated that OpenAI made $13 billion in revenue in 2025 and a cash burn of $9 billion. On the other hand, Anthroic is expected to have made $4.2 billion in revenue and a cash burn of $3 billion. 

READ MORE: What does Anthropic’s massive $50B AI expansion mean for US tech industry?

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