Summary: Anthropic is a privately held company, which means that you can’t invest in it, as it’s not listed on the stock exchange. However, if you’re interested in investing in the AI industry, you can buy stocks of other companies through a reputable broker like eToro.
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About Anthropic
Anthropic PBC is an American AI startup and public-benefit corporation (for-profit company that incorporates positive societal impact, worker welfare, community well-being, and environmental responsibility alongside profitability) founded in 2021 by former research executives from the ChatGPT developer OpenAI. The company specializes in developing general AI systems and language models, guided by a steadfast ethos of responsible AI deployment.
How to buy Anthropic stock: Step-by-step
Anthropic is a private company, with its stock out of reach to the broader investing public. Still, there are ways to get exposure to Anthropic through indirect investment options. Here’s how:
Step 1: Research the market and choose a company to invest in
While investing directly in Anthropic stock may not be an option at the moment, you can explore alternative investment strategies to gain exposure to the company’s potential growth and the broader AI sector:
Invest in major shareholders
One way of getting exposure to Anthropic is to invest in some of the major shareholders and investors with a stake in the company. While you won’t own Anthropic stock directly, you can indirectly benefit if Anthropic experiences significant growth and becomes a valuable asset in their portfolio.
Two of the most notable public companies that have invested in Anthropic are:
- Amazon (NASDAQ: AMZN): Under a strategic partnership with Anthropic, Amazon will invest up to $4bn in the company;
- Alphabet (NASDAQ: GOOG/GOOGL): In late 2022, Google’s Cloud division invested around $300 million.
Invest in the technology sector
To gain exposure to the AI sector, invest in established technology companies that are actively involved in AI research and development, such as:
- Microsoft (NASDAQ: MSFT);
- Nvidia (NASDAQ: NVDA);
- C3ai.inc (NYSE: AI);
- IBM (NYSE: IBM);
- Intel (NASDAQ: INTC);
- BrainChip (ASX: BRN);
- Synopsys (NASDAQ: SNPS);
- Splunk (NASDAQ: SPLK);
- Dynatrace (NYSE: DT);
- Baidu (NASDAQ: BIDU);
- Upstart Holdings (NASDAQ: UPST).
Invest in AI sector ETFs
If you prefer a more diversified approach to tap into the growing AI sector, consider investing in an AI-focused Exchange-Traded Fund (ETF). These ETFs provide exposure to a broad array of leading AI companies, mitigating the risks associated with investing solely in one company. Some options include:
- ROBO Global Robotics and Automation Index ETF (NYSEMKT: ROBO);
- iShares Robotics and Artificial Intelligence ETF (NYSE: IRBO);
- First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT).
You can access all the individual company stocks and ETFs mentioned above through your standard retail broker. In the next section, we’ll delve into the process of selecting a broker and provide recommendations for potential choices.
Step 2: Choose a broker
You need to register with a reputable online broker to securely invest in AI stocks. We recommend using eToro, a regulated multi-asset investing platform, offering:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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How to choose the best online broker?
Selecting the right online broker is a critical decision that can significantly impact your investment experience and outcomes.
To choose the best online broker, consider these factors:
- Research: Compare fees, commissions, and account types;
- Regulation: Ensure the broker is regulated and reputable;
- Platform: Assess the trading platform’s usability and features;
- Assets: Confirm the availability of the stocks or ETFs you want to invest in;
- Customer service: Check for responsive and helpful customer support;
- Educational resources: Look for educational tools if you’re new to investing;
- User reviews: Read reviews and feedback from other users;
- Security: Verify the broker’s security measures;
- Account types: Ensure they offer accounts that suit your needs.
Step 3: Place your order
After you’ve selected the company (or ETF) you want to invest in and registered with a broker, it’s time to proceed with your order, which will typically include the following steps:
- Search for the stock/ETF using its ticker symbol;
- Determine your order type (market order for an immediate purchase or limit order at a specific price);
- Specify your investment amount in currency or the number of shares;
- Review all details carefully before confirming the transaction.
Step 4: Monitor your investment
Regularly assess your investments to confirm you’re moving toward your financial goals, but refrain from making hasty decisions influenced by temporary market fluctuations. Stay focused on your long-term strategy.
Pros and cons of buying Anthropic stock AI alternatives
Pros
- Potential for high returns: AI is a rapidly growing sector with the potential for significant returns on investment, especially if you choose the right companies or technologies;
- Diversification: AI companies often operate in various industries, offering diversification in your investment portfolio;
- Efficiency: AI can enhance the efficiency of businesses, potentially leading to increased profits for the companies you invest in;
- Long-term growth: AI is likely to play a crucial role in the future, making it a long-term growth opportunity.
Cons
- Regulatory risks: As AI technologies advance, there may be increased regulatory scrutiny and potential restrictions;
- Competition: The AI sector is competitive, and not all companies will succeed. Picking the winners can be challenging;
- Lack of dividends: Many AI companies reinvest their profits into research and development, so they may not pay dividends;
- Market sentiment: AI stocks can be influenced by market sentiment and hype, leading to speculative bubbles.
What sets Anthropic apart from other AI companies?
Recognizing the concerns surrounding AI safety and its long-term implications, Anthropic has introduced its very own chatbot and AI assistant, Claude. What sets Claude apart is its innovative “constitutional training” technique, designed to minimize reliance on human feedback as well as to make it more helpful, honest, and harmless in its interactions.
Anthropic has garnered substantial attention and investment from major tech players, most recently, Amazon, who joined the billion-dollar race among big tech to exploit the potential of artificial intelligence by announcing a significant investment of up to $4 billion in Anthropic, mirroring the earlier link-up between Microsoft and OpenAI.
Common mistakes to avoid when buying Anthropic stock alternatives
When investing in stocks, there are several common mistakes to avoid in order to improve your chances of success and protect your financial interests. Here are some of the most prevalent mistakes:
- Lack of research: Failing to research and understand the companies or industries you’re investing in can be a costly mistake. Always conduct thorough due diligence before making investment decisions;
- Overlooking diversification: Putting all your money into a single stock or a few stocks can be very risky. Diversification across different assets or sectors can help spread risk and protect your portfolio from market volatility;
- Market timing: Trying to time the market by predicting short-term price movements is a challenging and often fruitless endeavor. It’s better to adopt a long-term investment approach, rather than attempting to buy and sell at precisely the right moments;
- Emotional trading: Emotional reactions to market fluctuations can lead to impulsive decisions. Avoid making investment choices based on fear or greed. Stick to a well-thought-out plan;
- Ignoring fees and costs: High trading fees, management fees, and taxes can significantly erode your returns over time. Be mindful of these costs and choose low-cost investment options when possible.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Anthropic stock
Is Anthropic public?
Anthropic is a private company, and its stock is not publicly listed on any stock exchange.
How to invest in Anthropic?
While you cannot directly buy Anthropic stock, you can explore indirect investment options. For example, to get exposure to Anthropic, consider investing in major shareholders of the company, such as Amazon and Google.
Are there any plans for Anthropic to go public in the future?
As of now, there is no public information about Anthropic’s plans to go public.
Are there any alternatives to investing in Anthropic directly?
Yes, you can indirectly invest in the AI sector through AI-focused ETFs, invest in major shareholders of Anthropic, or consider investing in other promising AI companies.
What is the potential for growth in the AI sector?
The AI sector is expected to experience substantial growth as AI technologies become integral to various industries. However, it’s important to note that growth potential can vary among companies in the sector.
Which major companies have invested in Anthropic?
Amazon has announced a strategic partnership with Anthropic and plans to invest up to $4 billion in the company. Furthermore, Google’s Cloud division also invested around $300 million in late 2022.
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
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