Anthropic’s new valuation forecast represents a sigh of relief for the volatile AI industry, which has come under additional pressure since the Democratic wave in last week’s midterm elections. The latest IPO documents filed Tuesday showed Anthropic plans to offer 825 million shares of its Class A common stock at a price range of $70 to $78 per share. At the high end of this range, Anthropic’s revenue would be $64.35 billion, giving the company a maximum stock market value of $1.405 trillion on a fully diluted basis. This is a significant increase from the $965 billion valuation announced as part of a funding round in May. Frontier AI Labs plans to price the product on November 18th, before making its public market debut the next day. “(When that happens), you’re going to say, ‘You know what? We’ve just been avoiding live ammunition,'” Jim Cramer told CNBC after the charges were filed. “Once Anthropic is over, we’re well on our way to Christmas.” Speaking at the club’s annual general meeting last Friday, Jim said a successful public debut for Claude’s creators was essential to stabilizing trading in AI-related stocks. Jim highlighted the “mad money” bet on Monday night ahead of the updated filing. Anthropic’s IPO price range, estimated valuation and trading schedule come at a critical time for Wall Street, as investors worry about the large amounts of cash being poured into artificial intelligence infrastructure and how companies will profit from those investments. Those concerns have only intensified amid a series of negative headlines that have put further pressure on an already fragile market. “We needed something really positive. We needed something good,” Jim said. Especially since the barrage of negative headlines coupled with election concerns about slowing data center construction. On Sunday, it was learned that NVIDIA’s board of directors is investigating CEO Jensen Huang’s ties to a suspected Chinese spy. Since then, this story and the two-session slide in Nvidia stock have dominated headlines. Early Tuesday morning in London, Federal Reserve Chairman Christopher Waller suggested that a half-point larger than usual rate hike in December could be justified. A few hours later, the consumer price index for October came in stronger than expected, reinforcing the case for a 0.5 point hike. The probability of a 0.5 point increase in the market rose to about 13% from zero percent on Monday, according to the CME FedWatch tool. Even with the quarter-point increase, it’s still essentially fixed at about 87%, only a few percentage points higher than before. According to Jim, the Anthropic IPO could be a true liquidation event for the market. Although uncertainty remains regarding Nvidia, he believes the case for broader AI investment remains solid even if Huang is forced to leave. This is due to the long-term value of Nvidia’s graphics processing units (GPUs), which are an essential driver of the artificial intelligence boom. Anthropic is a large user of chips like Nvidia and is involved in every corner of the AI ecosystem. In Tuesday’s filing, the company said it achieved success “through research advances and a multi-chip computing architecture across AWS Trainium, Google TPUs, Nvidia GPUs, and AMD GPUs that allows us to tailor workloads to optimize price and performance.” AWS Trainium is one of Amazon’s custom chips. The TPU is a custom chip from Google by Alphabet. In addition to the $64 billion stand from the IPO of Class A shares, Anthropic plans to sell $26 billion of Class N shares in a private placement to Nvidia, Google, Advanced Micro Devices, Broadcom, Micron, Microsoft, and Taiwan Semiconductor Manufacturing. All of these companies already have capital or strategic partnerships with Anthropic. “We’re getting this deal done at a fair price. They’re paying the people who have to pay,” Jim said. “And there probably won’t be much that will go wrong between now and the end of the year.” Jim also wrote in the “What’s Right” column that unless the conflict with Iran escalates, oil prices could fall further, which could ease inflationary pressures and prevent the Fed from raising interest rates too much. “I know it’s a really pan-optical view, but I think I’ve seen stranger things,” he concluded. (Jim Cramer’s charitable trusts are long NVDA, GOOGL, AMZN, MSFT, MU. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. 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