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Anthropic is reportedly working with major banks to expand its borrowing capacity as the artificial intelligence startup gears up for a potential public listing later this year.
Anthropic is in talks with banks to secure several billion dollars in new credit lines ahead of its planned initial public offering, investing.com reported (via The Information).
The report said the new financing would increase the company's existing $2.5 billion five-year revolving credit facility, obtained from lenders last year.
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Anthropic did not immediately respond to Benzinga's request for comments.
A revolving credit facility gives companies access to funds that can be borrowed, repaid and borrowed again as needed, providing financial flexibility without requiring immediate use of the full amount.
Expanding credit facilities before an IPO is a common move for companies preparing to enter public markets. The same banks that extend these credit lines often serve as underwriters for the share sale.
Elon Musk's Space Exploration Technologies Corp followed a similar approach, increasing its credit facility with several of its IPO bankers roughly a month before its June public offering.
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The report comes as Anthropic appears to be accelerating preparations for an IPO.
Earlier Wednesday, it was reported that the AI startup had begun high-level meetings with investors and could debut on the public markets as soon as October.
In May, Anthropic surpassed OpenAI to become the world's most valuable startup after raising $65 billion in its Series H funding round, which valued the company at $965 billion.
Meanwhile, rival OpenAI is also targeting a trillion-dollar IPO, though recent reports suggest its public listing could be delayed until 2027.
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