Investors push back on Anthropic's $1.5 trillion IPO valuation and schedule
Major investors are questioning whether Anthropic can command a $1.5 trillion valuation following a steep tech selloff, while doubts also mount over whether the AI company can launch its roadshow in time for a November debut.
Major investors planning to buy into Anthropic's initial public offering are pushing back against its targeted $1.5 trillion valuation following a sharp tech sector downturn, according to a Wall Street Journal report. Three prospective investors told the Journal that the price tag will likely need to be cut, with one suggesting the figure could land closer to $1 trillion. The skepticism follows a market rout in which Nasdaq companies shed $2.5 trillion in value over concerns about stricter post-midterm data center regulations.[1][2][3][5][6][7]
Anthropic had been preparing to raise up to $100 billion during the week of Nov. 16, a transaction that would make it the largest IPO in history and surpass SpaceX's $86 billion offering in June. While Anthropic's annualized revenue run rate reached more than $80 billion in October, company leaders and advisers now face difficult choices: lowering the valuation, reducing the size of the offering, or delaying the debut altogether. Leadership is expected to convene in the coming days to review the listing plans.[1][3][5]
The timeline itself is now facing scrutiny. Potential investors told Reuters that broader AI backlash could threaten the timing of the listing, casting doubt over whether the startup can proceed with a planned roadshow ahead of a target listing before Thanksgiving.[1][4][8]
Key facts
- The Wall Street Journal reported that major investors doubt Anthropic can achieve its planned $1.5 trillion IPO valuation following a sharp tech selloff.
- Three prospective investors said the valuation must decrease, with one suggesting a price tag closer to $1 trillion.
- Anthropic had targeted raising up to $100 billion the week of Nov. 16, which would eclipse SpaceX's $86 billion raise in June as the largest IPO ever.
- Anthropic's annualized revenue run rate crossed $80 billion in October.
- Investors and advisers are weighing options including reducing the valuation, scaling down the capital raise, or postponing the listing.
- Potential investors told Reuters that AI backlash is raising doubts over whether Anthropic can launch its roadshow in time for a November IPO.
Sources · 7 sources
- TK
The Kobeissi Letter@KobeissiLetterPost on X ·
BREAKING: Major investors are “increasingly skeptical” that Anthropic’s IPO can proceed at the expected valuation of $1.5 trillion after today’s market drop, per WSJ. One major investor said Anthropic’s valuation will need to come down to $1 trillion. This marks a major reversal from the $2+ trillion closing market cap expected by markets just months ago. Anthropic has been planning to IPO prior to Thanksgiving. It’s unclear if today’s crash will impact that timeline.
Open source - TE
TechmemeArticle ·
Sources: major investors are increasingly skeptical Anthropic's IPO can achieve a $1.5T valuation after a market selloff; one says it could be closer to $1T (Wall Street Journal) Wall Street Journal : Sources: major investors are increasingly skeptical Anthropic's IPO can achieve a $1.5T valuation after a market selloff; one says it could be closer to $1T — The AI giant could need to set a significantly lower-than-expected valuation, investors say — Major investors are increasingly …
Open source - MN
Mario Nawfal@MarioNawfalPost on X ·
🇺🇸 Anthropic was gearing up for the biggest IPO in history. Now investors are talking about a $500 BILLION haircut. The AI giant was targeting a $1.5 trillion valuation and a record $100 billion raise the week before Thanksgiving. But after this week's AI bloodbath, 3 major investors say the price will likely have to come down. One puts it closer to $1 TRILLION. Yesterday alone, Nasdaq companies lost $2.5 trillion in value as fears of tougher data center restrictions following the midterms hammered AI stocks. Anthropic's annualized revenue run rate topped $80 billion in October, but executives now face a choice: slash the valuation, raise less money, or delay the IPO altogether. Just months ago, investors were calling Anthropic a "must-own." Now they're looking for a discount. Source: WSJ / Writer: Julie
Open source - RE
Reuters@ReutersPost on X ·
Exclusive: Potential investors in Anthropic's highly anticipated IPO are raising doubts about whether the artificial intelligence startup can proceed with its planned roadshow next week in time for a November listing https://t.co/tVp5hX2Oxh
Open source - UW
unusual_whales@unusual_whalesPost on X ·
BREAKING: Investors are pushing back on Anthropic’s planned $1.5 trillion IPO valuation after today’s market rout, per the WSJ. Three major investors planning to buy into the offering told the WSJ the valuation will likely need to come down, with one saying it could land “closer to $1 trillion.” Another raised the possibility of delaying the listing, and a smaller offering is also under consideration. Anthropic had been aiming to raise up to $100 billion the week of Nov. 16, which would be the largest IPO ever, topping SpaceX’s $86 billion in June. Executives and advisers are expected to meet in the coming days to review the plans.
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*Walter Bloomberg@DeItaonePost on X ·
MAJOR INVESTORS ARE SKEPTICAL ANTHROPIC IPO CAN ACHIEVE $1.5 TRILLION VALUATION - WSJ
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🚨 LATEST: Anthropic’s investors doubt the AI giant can reach its expected $1.5 trillion IPO valuation after a deep AI-related market selloff, per WSJ. https://t.co/MyHHmSO8Hv
Open source - RE
Reuters@ReutersPost on X ·
EXCLUSIVE: AI backlash could threaten Anthropic IPO timing, potential investors say https://t.co/J1hcGYerq3
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