Anthropic, one of the most prominent artificial intelligence companies, is reportedly expanding the roster of banks that would help take it public. According to Bloomberg, Citigroup is in talks to join Morgan Stanley, Goldman Sachs, and JPMorgan on the underwriting team for a potential initial public offering. The report says Anthropic is considering filing as soon as the end of August, though the company is still weighing timing, valuation, and investor demand.
A growing team for a closely watched listing
Adding Citigroup would be another sign that Wall Street expects a large and highly visible IPO from Anthropic. The company, known for its Claude AI models, has been at the center of intense investor interest as artificial intelligence becomes a defining theme in markets. A deal of this size typically involves multiple banks to help manage the complex process of pricing shares, marketing to investors, and handling the logistics of a listing.
Bringing on more banks is a common move for companies preparing for a major IPO. It widens the distribution of shares to a broader set of investors and spreads the workload across firms with different strengths. Citigroup, for instance, has a large institutional client base and significant experience in technology deals. Bloomberg also noted that Citi was part of a bank group that provided Anthropic with a $2.5 billion credit facility, giving it an existing relationship with the company.
The potential IPO has been a topic of speculation for months. Earlier reports have suggested Anthropic is considering a valuation that could rival some of the largest tech listings in history. The company has also reportedly weighed dual-class share structures to preserve founder control, a common feature in high-profile tech IPOs.
What this means for investors
For everyday investors, the addition of Citigroup is a signal that the IPO is moving closer to reality, but it is not a guarantee. The company is still deciding whether to go public, and the timing could slip. Even if Anthropic files with regulators in late August, the actual listing could be weeks or months away.
Anthropic's IPO would be one of the most anticipated in years, given the surge of interest in AI. The company has seen rapid revenue growth, with some reports suggesting its revenue run rate has reached $65 billion. However, the valuation is expected to be based on projections for 2028, which means investors would be paying for future growth rather than current profits.
That kind of forward-looking pricing carries risk. If AI adoption slows or competition intensifies, the company's growth could fall short of expectations. The broader market for tech IPOs has also been uneven, with some listings performing well and others struggling. Recent trading in tech stocks has been mixed, reflecting investor caution about high valuations.
What to watch next
Investors should keep an eye on a few key developments. First, whether Anthropic officially files with the Securities and Exchange Commission. A filing would reveal detailed financials, including revenue, expenses, and risk factors, giving investors a clearer picture of the company's health.
Second, the final valuation. Reports have suggested a range of possibilities, including a $2 trillion valuation for an October listing, though that figure is speculative. The actual number will depend on market conditions and investor appetite at the time of the offering.
Finally, watch how the IPO is structured. If Anthropic adopts dual-class shares, it would mean outside investors have limited voting power, a feature that has drawn criticism from some governance advocates but is common among tech founders.
For now, the addition of Citigroup is a positive sign that the IPO process is advancing. But investors should remember that IPOs are unpredictable, and the final outcome could differ from current expectations. As always, it's important to do your own research and consider how any investment fits into your overall portfolio.
