Anthropic IPO: 2 AI Cloud Stocks to Buy Before October
💡 Key Takeaway
Amazon and Alphabet offer a lower-volatility way to invest in Anthropic's upcoming IPO, with their stakes already worth $190B and $124B and both stocks trading near all-time low earnings multiples.
Anthropic's Record-Breaking IPO Is Coming
Anthropic, the AI start-up behind the Claude family of large language models, has confidentially filed with the SEC and is expected to go public as early as October. The company is reportedly seeking to raise up to $100 billion at a $2 trillion valuation, which would make it the largest IPO in history.
Anthropic has played a key role in advancing AI. Its Claude Mythos Preview model detected thousands of high-severity software vulnerabilities, sparking Project Glasswing, an industrywide coalition of chipmakers, cloud providers, and cybersecurity experts.
Two publicly traded cloud giants are deeply tied to Anthropic: Amazon and Alphabet. Amazon has invested $18 billion in Anthropic with an option for $15 billion more, and its stake was worth $190.4 billion as of July. Alphabet has invested $13 billion with an option for $30 billion more, and its stake was worth $124 billion, roughly 15% of the start-up.
Both companies have strategic partnerships that go beyond money. Anthropic has committed to spending over $100 billion with AWS over the next decade and $200 billion with Alphabet's cloud and chips over five years. AWS and Google Cloud customers can also access Claude models directly through their accounts.
Why This IPO Matters for Amazon and Alphabet Investors
An Anthropic IPO at a $2 trillion valuation would dramatically increase the value of Amazon's and Alphabet's stakes, creating a windfall that could boost earnings and shareholder value. Amazon's $190.4 billion position could grow further, while Alphabet's $124 billion stake could also appreciate.
Beyond the paper gains, both companies benefit from deep commercial ties. Anthropic's massive spending commitments—$100 billion with AWS and $200 billion with Alphabet—provide long-term revenue visibility for their cloud units. AWS revenue accelerated 37% year over year in Q2 to $42 billion, its fastest growth in 18 quarters. Google Cloud revenue surged 82% to $25 billion, the fastest among major cloud providers.
Both stocks have pulled back recently due to investor concerns over soaring capital expenditures. Amazon is down 10% from its peak, and Alphabet has shed 13% this year. However, these declines have pushed valuations to near all-time lows: Amazon trades at 20 times earnings, and Alphabet at 17 times.
For investors with $5,000, buying these stocks offers exposure to Anthropic's growth without the historical volatility of a new IPO. The upcoming IPO could serve as a catalyst to re-rate both stocks higher as the market recognizes the value of their AI investments.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Buy AMZN and GOOGL now to capture the Anthropic IPO upside with lower risk than buying the IPO itself.
Both stocks offer a rare combination of discounted valuations, accelerating cloud growth, and embedded exposure to one of the most valuable AI start-ups. The upcoming IPO could act as a catalyst to unlock value, while the downside appears limited given their dominant market positions and reasonable multiples.
What This Means for Me
