Zoom’s Quiet Bet on Anthropic Could Be Worth Billions

Zoom may be sitting on a surprisingly valuable investment that’s only now getting attention.

Shares of the video-conferencing company jumped 11% on Monday after analysts at Baird suggested that Zoom’s stake in AI startup Anthropic could be worth anywhere from $2 billion to $4 billion, depending on dilution.

Zoom first revealed its connection to Anthropic in May 2023, when the AI company announced a partnership with Zoom and disclosed that it had received funding from Zoom Ventures. Neither company shared the size of the investment at the time. However, Zoom reported $51 million in “strategic investments” that quarter in a filing with the U.S. Securities and Exchange Commission.

According to Baird’s analysts, all—or at least the vast majority of that $51 million likely went to Anthropic. With the startup now valued at $350 billion, the analysts estimate Zoom could be looking at a return of roughly 78 times its original investment.

“While we (and the market) have been primarily focused on Zoom’s ability to reaccelerate revenue growth and capitalize on AI features, the quieter hidden gem may be its $51 million investment in Anthropic,” the analysts wrote in a note on Monday.

Zoom became a household name during the early days of the Covid-19 pandemic, as remote work and virtual gatherings surged. But as offices reopened and hybrid work settled in, the company’s stock fell sharply from its pandemic-era highs.

That’s why this investment could matter so much. Baird’s analysts see Anthropic as a potential bright spot for Zoom’s long-term story.

“Zoom is literally invested in the success of Anthropic’s Claude,” the analysts wrote. “And as IPO rumors around Anthropic pick up, that investment could become even more meaningful.”