Eric Schmidt reported to hold about 1% of Anthropic ahead of its planned IPO
In short
Former Google CEO Eric Schmidt holds about 1% of Anthropic, according to people familiar with the matter cited by Bloomberg and relayed by Chinese outlets. He put tens of millions of dollars into the company's Series A round, and it is unclear whether he has sold any shares since.
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Eric Schmidt, the former chief executive of Google, holds about 1% of Anthropic, according to people familiar with the matter cited by Bloomberg. IT Home relayed the report on 20 October, and CLS, Jiemian and 36Kr carried the same claim. The sources, who were not named, said Schmidt invested tens of millions of dollars in Anthropic's Series A round. It is not clear whether he has sold part of the stake since that first investment. [ 1 , 2 , 3 , 4 ]
IT Home said the stake would be among the most profitable investments by an individual investor once the company reaches the public market. Pitchbook data show that Schmidt, 71, first invested in 2021, when Anthropic was valued at $461 million. Investors said last week that a reasonable valuation range is $1.8 trillion to $2 trillion, and the top of that range is more than 4,300 times the valuation at the Series A. At that valuation, the Bloomberg Billionaires Index estimates, Schmidt's net worth would rise by about a third, to close to $80 billion. At Anthropic's latest funding valuation of $965 billion, his existing $57.5 billion fortune would still grow by nearly $10 billion. [ 2 ]
36Kr, citing Sina Finance, reported a different figure. It said investors at a meeting last week discussed a valuation of about $1.5 trillion, below the earlier expectation of about $2 trillion. [ 4 ]
According to IT Home, sources said earlier this month that Anthropic could begin its IPO roadshow as early as the week of 9 November. The company could list before the US Thanksgiving holiday, and no later than the end of this year. The sources said the company wants its IPO valuation to match or exceed the record $1.77 trillion set by SpaceX's IPO in June. [ 2 ]
IT Home said Schmidt has been an active technology investor for 15 years through vehicles including TomorrowVentures, Innovation Endeavors and the family office Hillspire. His AI investments include Mistral AI, Reflection AI, World Labs and Anthropic. Anthropic's other major investors include Alphabet, Amazon, Nvidia and Microsoft. In May, a $65 billion round was led by Altimeter Capital, Dragoon, Greenoaks and Sequoia Capital, and Anthropic's valuation then passed that of OpenAI for the first time. [ 2 ]
Why it matters
Outlets framed the stake as a likely large gain for an early investor once Anthropic lists. The reports rest on unnamed sources, and outlets differ on the valuation investors are discussing.
Key facts
- Eric Schmidt, former Google CEO, holds about 1% of Anthropic, according to reports published on 20 October. [ 1 , 2 , 3 , 4 ]
- Unnamed sources said Schmidt invested tens of millions of dollars in Anthropic's Series A round. [ 2 , 3 , 4 ]
- Pitchbook data show Schmidt first invested in 2021, when Anthropic was valued at $461 million. [ 2 ]
- Sources told Bloomberg that Anthropic could start its IPO roadshow in the week of 9 November and list before the US Thanksgiving holiday, and no later than the end of this year. [ 2 ]
- Anthropic's latest funding valuation is $965 billion. [ 2 ]
Confirmed by several sources
Still unclear
- Whether Schmidt has sold part of his Anthropic stake since his first investment. IT Home, Jiemian and 36Kr all say it is not known.
- The valuation Anthropic may reach at its IPO. IT Home, citing Bloomberg, says investors last week put a reasonable range at $1.8 trillion to $2 trillion. 36Kr, citing Sina Finance, says investors at a meeting discussed about $1.5 trillion, below the earlier expectation of about $2 trillion.
- The identity of the sources behind the stake figure. The reports cite unnamed people familiar with the matter and give no official confirmation.