00:00Bloomberg understands that Anthropic is set to finalize an expansion of its revolving credit facility to 15 billion dollars as
00:07the fraud maker prepares for its expected IPO later this year.
00:11Let's bring in Bloomberg's Anthony Stevens now for more. Anthony, just how significant is this step and what more do
00:19we know about the road to Anthropic's debut?
00:24Yeah, pre-IPO credit lines are kind of important just to calm nerves, especially ahead of tech IPOs, so that
00:30there is some kind of capital buffer that investors can look to in terms of immediate cash needs.
00:36Now, this company most recently reported revenue numbers that might render that kind of cash need irrelevant.
00:41But if the money is available, why not take it? And you see an extraordinary number of banks line up
00:47to lend them this money.
00:49This is well above that $10 billion target and multiples of the $2.5 billion they raised last year in
00:55the same credit line.
00:57So you see this kind of parade of bankers trying to set up for the IPO.
01:02So whoever lends this company money is probably a better place for that IPO.
01:06And you do see a range of banks, including many in Europe, do that.
01:09Now, in terms of setting up for the IPO, that cash balance plus these revenue numbers set up the IPO
01:16quite well.
01:16But in context, you can see the competition building from new models being launched pretty much every day by the
01:22Chinese and most recently by OpenAI.
Comments