NVIDIA CEO Jensen Huang Steps Down, Casting Uncertainty Over Anthropic IPO

CoinDesk reported on Nov. 13, citing a Nov. 12 Fortune report, that AI startup Anthropic is preparing for one of the most anticipated IPOs in history—only for NVIDIA cofounder and CEO Jensen Huang to abruptly resign just before the listing. The exit comes about a week before Anthropic’s expected market debut, depriving the AI industry of one of its most influential and charismatic advocates just as the company enters public markets. Huang’s sudden departure adds pressure to Anthropic’s IPO plans, which had been seen as a key test of investor appetite for AI. Anthropic is expected to go public on Nov. 18 or 19, shortly after NVIDIA reports its first quarterly results since Huang stepped down. NVIDIA is a key Anthropic partner and is deeply involved in the offering. Anthropic’s filings show NVIDIA has agreed to buy about $10 billion of shares as part of a $26 billion private placement concurrent with the IPO. The companies also have close business ties: Anthropic has committed hundreds of billions of dollars to secure access to NVIDIA’s most advanced chips. Investors and analysts said NVIDIA’s management change is unlikely to affect Anthropic’s core business but could weaken market confidence in the broader AI industry. Jay Goldberg, an analyst at Seaport Research Partners and one of the few on Wall Street with a "sell" rating on NVIDIA, does not expect the departure to derail the IPO. "They are going public right as NVIDIA reports earnings; I do not think this will disrupt their plans," he said. "The IPO is simply too large and involves too many participants for them to back out." Goldberg is more focused on Anthropic’s post-IPO prospects. Before Huang formally resigned, rumors circulated that he might step down. Goldberg warned then that turmoil at NVIDIA—especially the loss of its CEO—would pressure Anthropic as it releases its first quarterly report as a public company. "At the very least, the market will begin to ask: Can the AI boom continue? Can it keep progressing like this? Anthropic will face much sharper scrutiny," he said. Carl Aloma, a partner at venture capital firm M13, said Anthropic’s fundamentals remain unchanged. "In my view, Anthropic is just as strong and in as good a position now as it was before the news broke," he said. "Their financials are outstanding, and they clearly have more computing power than they need—they have not spent nearly that much." Anthropic is also less dependent on NVIDIA than some competitors. Beyond NVIDIA hardware, it uses Google TPUs, Amazon Trainium chips, and AMD GPUs to run certain AI models. Reports say Anthropic is considering developing its own chips. Francine McKenna, an accountant, investigative journalist, and former Wharton lecturer, expects NVIDIA’s investment commitment to proceed. "NVIDIA has pledged to invest $10 billion in Anthropic upon its IPO. By the time the IPO actually happens, this investment is likely to proceed as planned," she said. "But anyone expecting NVIDIA to step in and rescue CoreWeave in a crisis will need to look elsewhere." Jason Schloetzer, an associate professor at Georgetown University’s McDonough School of Business, said NVIDIA’s recent turmoil and growing skepticism about Huang’s judgment could lead to stricter scrutiny of its partners. He expects the market to examine Anthropic’s ties to NVIDIA and NVIDIA’s customers more closely. In Silicon Valley, Anthropic and rival OpenAI have enormous funding needs. Nearly every venture capital firm holds shares in both companies, giving them a near-index-fund-like status in private markets. Anthropic’s IPO next week is expected to be a pivotal liquidity opportunity, affecting not only the interests of more than 400 investors but also the broader outlook for the AI boom. The market broadly believes a successful listing would signal substantial further upside for AI, while a failed or indefinitely postponed IPO would send a clear negative signal that the AI bubble is nearing collapse. Huang’s departure may not block Anthropic’s IPO. At least one venture capitalist believes Anthropic could even benefit. The two companies differ on AI regulation, with Huang strongly opposing licensing requirements that could make it harder for customers to use open-source AI models. "If anything, I think Anthropic could benefit from this. They have never had a close relationship with Jensen Huang... Anthropic is also developing its own chips, so the space freed up in the supply chain works to their advantage," an anonymous venture capitalist said.