The record Anthropic IPO is under fresh scrutiny after Nvidia chief executive Jensen Huang resigned. The move has also highlighted how closely the two AI giants are tied together.
Why Is Nvidia’s CEO Exit Putting the Anthropic IPO Under Review?
Investors are watching whether Huang’s exit weakens sentiment toward AI trades. Reports had also surfaced that Huang was linked to several extramarital affairs, and one of the women was suspected of being a Chinese spy.
Nvidia’s share price has also fallen, though the report does not quantify the drop.
How Big Is Nvidia’s US$10 Billion Stake in the Anthropic IPO?
Anthropic’s filing shows Nvidia agreed to subscribe for about US$10 billion of shares as part of the US$26 billion private placement held alongside the IPO. The combined IPO and placement plan totals US$90.4 billion next week.
- Nvidia: about US$10 billion
- Google: about US$10 billion
- AMD: about US$2.5 billion
Amazon and Google are already Anthropic backers. Anthropic treats Nvidia as a strategic partner and has committed tens of billions of dollars to secure access to Nvidia’s most advanced chips.
What Did Bloomberg Industry Research Say About the US$1.4 Trillion Valuation?
Bloomberg Industry Research analyst Mandeep Singh wrote on Wednesday, 11 November, that a leadership change could prompt Nvidia’s board to reassess the size, timing or strategic rationale of its investment. Any delay or cut, he said, could signal weaker Nvidia support for an IPO at a valuation of about US$1.4 trillion.
Singh added that commitments from Google and other strategic investors may limit the impact on financing.
Can Anthropic Keep Its AI Chip Supply Without Nvidia?
Anthropic mainly uses chips from Nvidia, AMD, Alphabet’s Google and Amazon. InvestorPlace chief technical analyst Luke Lango said the S-1 filing shows Anthropic has arranged its AI accelerator supply and is prepared to avoid over-reliance on Nvidia.
Will the Nvidia Scandal Derail the Anthropic Deal?
Miller Tabak & Co. chief market strategist Matt Maley said in a client report: “At this point, this deal should be able to complete smoothly.” He said the latest Nvidia developments and share price decline do not appear to have hurt Anthropic much.
Maley added that if Anthropic shares perform well in the days or weeks after the IPO, investors may stop focusing on the Nvidia scandal. An Anthropic spokesperson declined to comment, and Nvidia had not immediately responded to a request for comment.
What Is Missing From the Anthropic IPO Details?
The report does not disclose the offer price, number of shares offered, listing venue, subscription period or listing date. It also gives no revenue, profit or EPS figures, so a peer valuation comparison cannot be made from this source alone.
Can Malaysian Investors Apply for the Anthropic IPO Through M+ Global?
The report does not mention a Bursa Malaysia listing, so no Malaysian application route is confirmed. For Bursa Malaysia IPOs, online applications need a direct CDS account in the applicant’s own name, and only one application per IPO is allowed.
Multiple applications are an offence under the Capital Markets and Services Act 2007. For Bursa IPO applications through M+ Global, use invitation code UBZQ, and WhatsApp +60169059789 for assistance. Read more in IPO Investing with M+ Global.
Key Takeaways
- Nvidia has agreed to subscribe for about US$10 billion of shares in Anthropic’s US$26 billion private placement.
- The combined IPO and placement plan totals US$90.4 billion and is due next week.
- Nvidia chief executive Jensen Huang has resigned, and Bloomberg Industry Research says a delay or cut would signal weaker support at a US$1.4 trillion valuation.
- Google (about US$10 billion) and AMD (about US$2.5 billion) have also agreed to join the placement.
- The report omits the offer price, shares offered, listing venue and dates.
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Disclaimer: This article is for information only and is not financial advice. Do your own research and consider your risk profile before making any investment decision.
Frequently Asked Questions
How big is the Anthropic IPO?
The combined IPO and private placement plan totals US$90.4 billion and is due next week, according to the report. Nvidia’s share is about US$10 billion of the US$26 billion private placement.
How much is Nvidia investing in Anthropic?
Anthropic’s filing shows Nvidia agreed to subscribe for about US$10 billion of shares as part of the private placement held alongside the IPO. The report says the commitment may be reassessed after Jensen Huang’s resignation.
Why could Jensen Huang’s resignation affect the Anthropic IPO?
Bloomberg Industry Research analyst Mandeep Singh said a leadership change could prompt Nvidia’s board to reassess the size, timing or strategy of its investment. He added that any delay or cut could signal weaker support for a valuation of about US$1.4 trillion.
Can Malaysian investors apply for the Anthropic IPO through M+ Global?
The report does not mention a Bursa Malaysia listing, so no Malaysian application route is confirmed. For Bursa IPOs, applications need a direct CDS account in your own name, and you may only apply once per IPO.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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