Anthropic IPO Valuation Faces Pushback After Tech Selloff

Anthropic’s prospective $1.5 trillion IPO valuation is facing investor resistance after a sharp selloff in U.S. technology stocks raised doubts about the price and the offering’s near-term timetable.

Three prospective major investors view the $1.5 trillion target as difficult to reach, and one sees a likely valuation closer to $1 trillion. Other prospective buyers are seeking a larger pricing discount before making commitments. Investors have also questioned whether the expected roadshow can begin during the week of Nov. 9. Separately, confidence in completing the IPO within the year has weakened.

Anthropic has avoided publicly committing to a specific timetable. Company executives and advisers are expected to meet in the coming days to discuss the IPO. The contemplated offering had been expected before Thanksgiving and could raise as much as $100 billion.

Valuation expectations had reached figures as high as $2 trillion earlier this year. The current target is lower, but some investors now see even $1.5 trillion as difficult to justify amid the market downturn.

The pressure intensified after Thursday’s U.S. technology selloff. Nasdaq Composite companies lost a combined $2.5 trillion in market value that day, while more than 50 technology stocks in the S&P 1500 fell more than 10% in a single session.

Investors are also examining Anthropic’s fundamentals. The company continues to post quarterly losses and has made substantial capital commitments to AI infrastructure partners. Its amended IPO filing leaves the October revenue figure blank, a number investors are waiting for as they assess whether growth has picked up again after slowing in recent months. Anthropic held $146.6 billion in cash as of Sept. 30.

Possible paths for the offering include proceeding at a lower valuation, reducing the fundraising amount or postponing until market conditions improve. The debate comes as OpenAI’s latest funding effort had raised about $11 billion toward an initial $30 billion target, at a transaction valuation of $1.25 trillion below earlier expectations.

Anthropic’s executives and advisers are expected to meet in the coming days to discuss the IPO plans.