Kroll Bond Rating Agency has recently assigned Anthropic a BB+ credit rating, a notable move that comes ahead of the company’s anticipated IPO in November. This rating, given a positive outlook, places Anthropic just one notch below investment grade, reflecting the growing confidence in the AI developer’s financial stability.
On October 16, reports confirmed that this rating, which applies to approximately $4.4 billion in subordinated debt, was assigned back in June. The subordinated debt is part of a substantial $35 billion financing package, primarily led by Apollo Global Management, with Broadcom guaranteeing the senior portion of the deal. The subordinated debt carries an interest rate of 8.5%, while the senior debt has a rate of 5.75%.
Kroll’s assessment was based on limited financial data, including revenue figures and adjusted operating income. Due to the absence of a complete financial model, analysts employed a risk-scoring system to derive their conclusions.
Banks Prepare $60 Billion for AI Chips
In addition to the credit rating, major financial institutions are preparing a massive $60 billion financing deal aimed at facilitating Anthropic’s acquisition of custom AI chips. This financing package is set to include $18 billion in subordinated debt tied directly to the company’s computing infrastructure, developed in partnership with tech giants Google and Broadcom.
Furthermore, Anthropic may also issue up to $42 billion in convertible notes to finance chip leasing, although Kroll did not receive specific details regarding these notes during its review. This financing initiative comes in anticipation of Anthropic’s IPO, which could significantly enhance the company’s access to institutional lenders and potentially lower its borrowing costs.
As of June 30, Anthropic reported having no debt directly on its balance sheet. Credit rating agencies such as Moody’s, S&P Global Ratings, and Fitch are expected to reassess its creditworthiness once the company goes public.
Revenue Growth Slows as Valuation Talks Shift
During a recent investor presentation on October 14, Anthropic disclosed its third-quarter revenue of $16.8 billion, representing a remarkable 45% increase from the second quarter. However, this growth marks a slowdown compared to previous quarters, where revenue was reported at $4.7 billion in Q1 and $11.6 billion in Q2.
Amidst a shifting landscape of expectations, some investors have recently discussed a valuation of approximately $1.5 trillion for Anthropic, a notable decrease from earlier aspirations of around $2 trillion. In May, the company had raised $65 billion at a post-money valuation of $965 billion, boasting annualized revenue that had surpassed $47 billion at that time.
According to an IPO prospectus reviewed by various analysts, Anthropic anticipates generating nearly $4.6 billion in revenue by 2025, albeit with an operating loss exceeding $8 billion that year. The prospectus also revealed that around $34 billion of its reported $42 billion net loss was attributed to an accounting charge linked to financing instruments that could convert into shares.
Additionally, Anthropic has made significant commitments, with at least $518 billion earmarked for cloud services, computing power, and infrastructure over the next decade. As concerns over AI infrastructure debt grow, some related companies have experienced declines in their stock and bond values, leading to postponed or canceled public offerings.
On October 8, Anthropic announced a $150 million commitment to U.S. AI research through the Genesis Mission, which aims to support research initiatives utilizing its AI model Claude across more than 15 federal science agencies.
