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Former Google CEO Eric Schmidt reportedly owns about 1% of Anthropic from an early investment, creating a potential IPO windfall if Anthropic lists publicly.
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Eric Schmidt Wrote a Check to Anthropic Before the AI Boom: Here’s How Big the Payoff Could Get Former Google CEO Eric Schmidt reportedly holds about 1% of Anthropic PBC through an early investment, potentially giving him one of the largest individual windfalls from the artificial intelligence company’s upcoming public market debut. Early Series A Bet Schmidt invested “tens of millions of dollars” in Anthropic’s Series A round, according to a Bloomberg report published Monday, citing people familiar with the matter. However, it is unclear whether he has sold any stake of his early investment. Anthropic and Schmidt did not immediately respond to Benzinga’s request for comment. Schmidt led Google as CEO from 2001 to 2011, overseeing its 2004 public listing, then served as executive chairman. He kept the role at Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) when it was formed in 2015, before moving into a technology advisory role in 2017. Read Also: ‘Obviously This Is a Finger’: Apple’s ‘Pro and Tell’ Teaser Has Everyone Talking — MacBook Pro Buzz Intensifies How Much Schmidt Stands to Gain Anthropic was valued at $461 million when Schmidt made his investment in 2021, according to data company PitchBook. Last week, investors indicated the company’s fair valuation was around $1.8 trillion to $2 trillion, Bloomberg said. At the high end of the range, the Claude maker could be valued at more than 4,300 times its Series A funding. At a $2 trillion valuation, the stake would lift Schmidt’s net worth by about one-third to nearly $80 billion, according to Bloomberg’s wealth index. With Anthropic’s May valuation of $965 billion, Schmidt could add $10 billion to his current net worth of $57.5 billion, the report added. Other Backers Alphabet owns about 14% of Anthropic, a stake that would be worth over $280 billion at a $2 trillion valuation, while Amazon.com, Inc. has invested an estimated $8 billion. Nvidia Corp. and Microsoft Corp. also made later investments in the Claude maker. IPO Could Come in Weeks Anthropic has not formally announced an IPO date. Altimeter Capital’s Brad Gerstner, an early investor, told CNBC last week that he expects the company to go public in “weeks, not months.” Anthropic told investors that third-quarter revenue rose 45% from the previous quarter to $16.8 billion and that it was profitable on an adjusted basis, Reuters reported. Price Action: Alphabet’s Class A shares closed 1.05% higher on Monday at $344.18 and rose 0.070% in extended trading. Class C stock closed 0.96% higher at $340.16 and gained 0.041% in after-hours. Benzinga Edge rankings indicate Alphabet’s Class A stock has a Momentum score in the 81st percentile and a Growth score in the 84th percentile. See More: Top Momentum Stocks Photo Courtesy: Frederic Legrand – COMEO on Shutterstock.com