What changed
Anthropic's initial public offering (IPO) is encountering resistance as investors question the $1.5 trillion valuation. Potential backers are skeptical about the planned roadshow, which was originally scheduled to begin next week. The company had previously aimed for a valuation of up to $2 trillion, but some investors now believe even $1.5 trillion is too high. One investor reportedly suggested a valuation of just $1 trillion. The concerns stem from Anthropic's ongoing losses and the high costs of scaling its AI infrastructure. Investors are also waiting for October revenue numbers, which are missing from the updated S-1 filing.
What this means in practice
The IPO's valuation is under scrutiny due to the company's financial performance and the broader market environment. The midterm elections have exacerbated the situation, with ballot initiatives targeting data center expansion passing in several states, leading to a sharp decline in tech stocks. The Wall Street Journal also reports that IPO investors are skeptical. If AI stocks remain under pressure, Anthropic may delay its offering, which some estimates suggest could be as large as $100 billion. A delay could further impact confidence in the broader AI sector.
Limitations and availability
The supplied announcement does not specify the exact terms of the IPO or the final valuation. Investors are waiting for updated financial data, including October revenue figures, which are not yet available. The IPO's timeline and final valuation remain uncertain due to market conditions and investor skepticism.
