VCs will make billions on Anthropic’s IPO, but Amazon is set to make much (much) more

Amazon is expected to reap a significant financial gain from Anthropic's IPO, with its convertible notes valued at $97.9 billion as of June 30, compared to the $6.2 billion principal amount outstanding. This is due to Anthropic's valuation increasing across successive funding rounds. In contrast, venture capital firms such as Menlo Ventures, Sequoia, and Sound Ventures have stakes valued at billions but below 5% of the company, not qualifying them for the principal stockholders' table. The S-1 filing reveals that Amazon holds the majority of Anthropic's debt, with its convertible notes representing the entire debt load of $6.2 billion as of June 30. Amazon's investment in Anthropic, initially committed at $4 billion in 2023, has grown significantly with billions more invested in convertible notes that will convert into shares upon the IPO or sale. According to Amazon's own filings, the value of these notes is expected to increase further with the company's growing valuation.