Artificial intelligence startup Anthropic filed confidentially for an initial public offering on Monday, beating its primary rival OpenAI to the starting gate in what analysts say could be the second- or third-largest IPO in history — and the latest chapter in California’s dominance of the global AI industry.

Why It Matters for California

Anthropic, founded only five years ago by former OpenAI employees and now valued at $965 billion after a $65 billion funding round, is headquartered in San Francisco. If it debuts at a $1 trillion valuation, it would immediately rank among the most valuable companies on earth — and add another mega-cap tech name to California’s corporate roster, with ripple effects for the state’s tax base, venture ecosystem, and the thousands of Anthropic employees scattered across the Bay Area and beyond, including the company’s growing data-center footprint in the San Diego region.

CEO Dario Amodei is already worth an estimated $7 billion, according to Forbes. Going public would allow employees and early investors to finally cash in on years of equity compensation, potentially generating significant wealth — and tax revenue — for California.

The Race Against OpenAI

Both Anthropic and OpenAI were previously expected to begin trading in the fall. Anthropic’s early filing signals it wants to hit the public markets before SpaceX’s own trillion-dollar IPO absorbs available investor capital. Dan Ives, managing director at Wedbush, called it “an opening of the floodgates for the IPO market, which has been relatively dormant for a few years.”

History suggests going first matters. When ride-hailing apps Uber and Lyft went public in 2019, Lyft — which listed first — performed better in the aftermath. Uber finished its first trading day below its IPO price, an unusual outcome for a high-profile offering. Beating OpenAI to the public markets would also be a personal triumph for Anthropic’s founders, several of whom left OpenAI on less-than-amicable terms.

Public Benefit Structure

Anthropic is structured as a public benefit corporation, with a stated purpose of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.” The filing is currently confidential as the Securities and Exchange Commission reviews it. “This gives us the option to go public after the SEC completes its review,” the company said. “The number of shares to be offered and the price have not yet been set.” Business of San Diego will follow the SEC review process and local implications.

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