Investors push Anthropic to cut its IPO valuation below $1.5 trillion after the AI selloff

What's the deal? Major investors who plan to buy shares in Anthropic's IPO are increasingly sceptical the company can list at the roughly $1.5 trillion valuation that had been expected, the Wall Street Journal reported on 5 November, citing people familiar with the matter. Three large investors said the valuation will likely need to come down, with one saying it could end up closer to $1 trillion. Another raised the possibility of a delay; scaling back the size of the raise is also on the table.

The plan so far: Anthropic has been aiming to price in the week before Thanksgiving and has been expected to raise up to $100 billion, which would eclipse SpaceX's June listing. Earlier in the year some investors talked about a debut near $2 trillion; by early November that talk had already cooled toward about $1.5-1.6 trillion after a prior tech selloff, according to earlier Journal reporting. Anthropic has not locked a valuation target or share count, and executives and advisers were expected to meet in the coming days while keeping options open, the Journal said.

Why the pushback now: Thursday's AI-linked selloff wiped about $2.5 trillion of market value from Nasdaq-listed companies, two days after US midterm results that lifted AI-sceptical lawmakers and data-centre moratorium pledges. Reuters, citing four people familiar with investor talks, separately reported doubts about whether Anthropic can still start its roadshow on the previously expected timetable for a November listing. Anthropic declined to comment to Reuters.

Context: An amended S-1 showed about $17 billion of third-quarter revenue and roughly $146.6 billion of cash as of 30 September, alongside very large compute purchase and lease commitments. Rival OpenAI has delayed its own listing plans into next year, per market reporting.

Read more: Wall Street Journal, Reuters, AFP via Gulf News, Yahoo Finance, The Kobeissi Letter (X)

Image: Anthropic (Dealroom)