Silas Stein | Alliance in pictures | Getty Images
Actions of Zoom closed up 11% Monday after Baird analysts estimated that the company’s investment in artificial intelligence startup Anthropic could be worth between $2 billion and $4 billion, depending on dilution assumptions.
In May 2023, Anthropic announcement a partnership with Zoom and revealed that Zoom Ventures had invested in the company. The companies did not disclose the value of the investment, but Zoom said it made $51 million in “strategic investments” that quarter, according to a filing with the U.S. Securities and Exchange Commission.
Baird analysts estimate that all, or at least the “vast majority,” of that investment went to Anthropic. The startup is currently valued at $350 billion, suggesting that Zoom could achieve a return on investment of around 78 times, according to analysts.
“While we (and the market) have primarily focused on ZM’s ability to gradually reaccelerate revenue growth and capture AI opportunities, the more understated and hidden gem may be its $51 million investment in Anthropic in 2023,” the analysts wrote in a Monday note.
Zoom exploded in popularity at the start of the Covid-19 pandemic, as workers turned to the video conferencing platform to stay in touch with colleagues, friends and family. But as the pandemic eased and many workers returned to in-person roles, Zoom’s stock fell from its highs.
The company’s investment in Anthropic could prove to be a bright spot, Baird analysts said.
“ZM is literally invested in Anthropic Claude’s success, and as rumors of Anthropic’s IPO accelerate, the investment could become even more significant,” the analysts wrote.
