Anthropic IPO investors press for a $1.5 trillion to $1.6 trillion valuation
Institutional investors planning to buy shares in Anthropic’s IPO have urged a valuation around $1.5 trillion to $1.6 trillion, below the roughly $2 trillion discussed in recent months, The Wall Street Journal reported. The push comes after a tech-stock selloff and amid concerns about the returns on AI spending, even as Anthropic’s revenue continues to grow rapidly. The final price will test investor appetite for a major AI listing.12
TL;DR
- The lower valuation push reflects investor concerns about market conditions and the cost and profitability of AI infrastructure, not an end to Anthropic’s rapid revenue expansion.12
- Market pricing leaves meaningful, though not majority, odds on a valuation closer to the roughly $2 trillion discussions, underscoring that investor guidance has not settled the eventual IPO price.M51
Still to come
- Anthropic is preparing to begin formally marketing shares to prospective investors next week. That process will bring its growth prospects and computing commitments into focus as buyers assess the valuation they are willing to support.
Investors have communicated the lower valuation guidance to Anthropic and its advisers over the past several days, according to people familiar with the matter cited by the Journal. The reported concerns include volatile markets, heavy exposure to AI, political opposition to data centers and uncertainty about when major technology companies will turn AI investment into profit. The $1.5 trillion to $1.6 trillion range is below figures near $2 trillion discussed in recent months.1
Anthropic’s financial picture combines rapid growth with rising costs. The Globe and Mail reported that third-quarter revenue growth slowed sharply and that the company incurred $5 billion in additional compute costs during the quarter, reducing revenue per dollar of compute from the previous quarter. Investors are also weighing future computing-capacity commitments and the timing of related payments against revenue growth.2
Prediction-market pricing on Nov. 2 implied a 23% probability that Anthropic would price its IPO by Dec. 31, 2027, at a valuation between $1.75 trillion and $2 trillion. That is a distinct, higher range than the valuation investors are reportedly urging, and suggests the upper end of recent discussions remains a live possibility rather than an agreed price.1M5
Sources
AI-generated from the linked reporting and prediction-market data. Market prices reflect traders’ expectations and can change.