Former Google CEO Eric Schmidt owns about 1% of Anthropic, with his stake potentially worth billions of dollars as the AI company prepares for an Anthropic IPO, according to The Next Web. Bloomberg reports that Schmidt put tens of millions of dollars into the startup back in 2021.
Key takeaways
- Eric Schmidt holds a reported 1% stake in Anthropic from a 2021 funding round.
- Potential IPO valuations for the company range from $1.5 trillion to $2 trillion.
- Research firm New Constructs values the firm much lower at $144 billion.
- Google and Amazon are major backers providing cloud infrastructure for Claude models.
What is the expected valuation for the Anthropic IPO?
Potential investors have discussed an IPO valuation ranging from $1.8 trillion to $2 trillion for the AI developer. At the upper end of those estimates, Schmidt's holding would reach approximately $20 billion, which could push his estimated net worth from $57.5 billion to nearly $80 billion if he keeps his full share.
Some backers are pushing for a lower valuation of around $1.5 trillion following weaker third-quarter results, according to Reuters. Meanwhile, US research firm New Constructs labeled the planned listing as the year's most ridiculous IPO and estimated the company's value at just $144 billion.
How did Eric Schmidt invest in the company?
Schmidt backed the firm during its Series A round in 2021 through investment firms like Innovation Endeavors and his family office, Hillspire. That round raised $124 million with a valuation of $461 million, led by Skype co-founder Jaan Tallinn and Facebook co-founder Dustin Moskovitz.
It remains unclear whether Schmidt sold any shares since his initial investment. Alongside his stake, Google and Amazon remain two of the biggest backers of the AI developer, investing billions and supplying cloud infrastructure for its Claude models.
What happens next?
The company could start marketing its shares to investors during the week of 9 November, with trading potentially kicking off before US Thanksgiving on 26 November. The exact timing and final valuation are not yet confirmed, and Bloomberg notes the initial report has not been independently verified.
Frequently asked questions
Eric Schmidt reportedly owns about 1% of Anthropic, stemming from an initial investment he made during the company's Series A funding round back in 2021.
Schmidt invested tens of millions of dollars in Anthropic's Series A round in 2021, when the startup was valued at $461 million according to PitchBook data.
Potential investors have discussed IPO valuations between $1.8 trillion and $2 trillion, though some backers suggest a lower valuation of $1.5 trillion after weaker third-quarter results.
Anthropic could begin marketing its shares to investors as early as the week of 9 November, with trading potentially starting before US Thanksgiving on 26 November.
Google and Amazon are among Anthropic's biggest backers, having invested billions of dollars and providing the cloud computing infrastructure behind its Claude models.
Based on reporting by The Next Web. Read the original article
