Connect with us

Hi, what are you looking for?

Stock

Could Anthropic IPO prove better than SpaceX for investors?

Anthropic’s upcoming stock market debut gives investors a tantalizing choice – buy the company selling artificial intelligence (AI) to businesses – or invest in SpaceX, which increasingly supplies the computing infrastructure behind that boom.

The Claude developer publicly filed for its IPO on Oct. 26, seeking a Nasdaq listing under “ANT”, although pricing terms remain undisclosed.

Anthropic could ultimately prove the stronger investment, but that argument rests on enterprise adoption, and the price investors pay – not simply excitement about another blockbuster listing.

Enterprise adoption gives Anthropic a compelling advantage

Anthropic’s strongest selling point is how deeply its technology is entering corporate workflows.

By Sept. 30, more than 11,900 clients generated at least $100,000 each in trailing annual revenue, with customers including every Fortune 10 company and more than half the Fortune 500.

Its products span coding, workplace assistance, and tools for deploying AI agents.

That creates a plausible route to durable growth: customers can expand spending as Claude handles more tasks, while integrations into internal systems could make switching providers disruptive.

The commercial momentum is already “substantial”.

Anthropic told prospective investors its Q3 revenue reached $16.8 billion, up 45% sequentially, and that it was profitable on an adjusted basis during the quarter.

Those are reported investor-meeting figures, rather than proof of sustainable profitability.

However – they strengthen the case that Anthropic can turn technical leadership into a substantial business.

SpaceX’s infrastructure boom carries a huge spending burden

SpaceX offers formidable competition for investors’ capital. Q3 revenue climbed 161% to $14.58 billion, while net profit reached $4.4 billion.

Its AI business generated $7.6 billion in revenue, largely through renting computing capacity to developers, including Anthropic.

However, quarterly capital expenditures reached approximately $19.6 billion, with AI accounting for $16.4 billion.

For investors, that spending creates a demanding equation: enormous investments “must” produce sufficient future cash flow to justify their cost.

Anthropic could outperform if client relationships and differentiated software ultimately capture more attractive economics than infrastructure rental.

Yet calling Anthropic an inexpensive software business would be rather misleading. It has pledged at least $518 billion over a decade toward cloud, computing, and infrastructure.

Outsourcing capacity changes where expenditure appears – but it does not remove the underlying financial obligation.

Investors are choosing between different exposures to the same expensive AI expansion.

IPO valuation will decide whether the opportunity is attractive

The decisive consideration is valuation. Reuters reported potential pricing of up to $1.5 trillion – while other reporting has discussed $2 trillion. Neither represents finalized offering terms.

Using the reported Q3 revenue as a simple annualized benchmark produces $67.2 billion. A $1.5 trillion valuation would therefore mean about a 22x sales multiple; $2 trillion would imply roughly 30x.

While that suggests considerable growth is already embedded in the prospective price, Anthropic’s valuation still trails SpaceX’s more than 100x P/S ratio as of writing.

All in all, Anthropic does have a “credible path” to becoming the better investment – particularly for investors seeking direct exposure to enterprise AI adoption.

The post Could Anthropic IPO prove better than SpaceX for investors? appeared first on Invezz

    You May Also Like

    Economy

    The TSX Composite Index has come under intense pressure in the past few months. It dropped to 35,788 points on Friday, down by 3.53%...

    Politics

    Trick-or-treating, like most expenses recently, will come with a bigger price tag this Halloween. The increase is hitting as families prepare for a holiday...

    Stock

    Anthropic’s planned initial public offering is bringing renewed attention to the complex financial relationships underpinning the artificial intelligence industry, where technology giants and venture...

    Investing

    Etsy announced new restrictions Thursday on AI-generated content on its platform, saying it threatens the integrity of its sellers’ work and leaves buyers exposed...