Anthropic is racing toward its IPO and has unveiled to investors its use of Claude to design AI chips. With just a 15-person in-house chip team, Anthropic has already deployed Claude in actual engineering design, and engineers report that certain tasks take less time than their estimates for traditional chipmakers like NVIDIA and AMD. Anthropic announced its chip development back in August, but is now showcasing Claude’s chip-design capabilities to IPO investors. If Claude can not only assist in its own chip development but also provide design tools to other semiconductor companies, it could enter a $10 billion-plus market; currently, Synopsys and Cadence are projected to generate combined annual revenues of approximately $16 billion. On November 3, Synopsys and Cadence shares dropped as much as 4% intraday. Competitor OpenAI has used its own models to aid in developing the Jalapeño chip and signed a multi-year partnership with Synopsys to build AI models specifically for chip design.