Anthropic's $1.5 trillion IPO hits a snag as investors question the valuation
Anthropic's IPO has hit a snag as investors question the $1.5 trillion valuation, with some potential investors doubting whether the roadshow originally scheduled to launch next week can proceed as planned. The company was still considering a valuation of up to $2 trillion in September; now some investors are willing to value it at only $1 trillion, citing that Anthropic is still losing money and continues to burn cash to expand AI infrastructure, and that the updated S-1 filing lacks October revenue data. In the midterm elections, several state-level ballot measures targeting data center expansion passed, triggering the sharpest tech stock selloff in a year; if AI stocks remain under pressure, Anthropic may postpone the offering, which some estimates put at up to $100 billion.
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Anthropic's IPO is in trouble as investors push back on the $1.5 trillion valuation and the tech market sells off. According to Reuters , potential backers doubt the planned roadshow can kick off next week as scheduled.
As recently as September, the company was eyeing a valuation of up to $2 trillion . Now some investors think even $1.5 trillion is too rich. One investor reportedly floated a valuation of just $1 trillion. Investors want a steeper discount because Anthropic is still losing money and burning through cash to scale its AI infrastructure. They're also waiting on October revenue numbers, which are missing from the updated S-1 filing.
The midterm elections made things worse. Ballot initiatives targeting data center expansion passed in several states, triggering the sharpest tech selloff in a year. The Wall Street Journal also reports that IPO investors are skeptical. If AI stocks stay under pressure, Anthropic could delay the offering, which some estimates peg at up to $100 billion in size. A delay could further shake confidence in the broader AI sector.