Anthropic IPO faces valuation cut after $2.5 trillion rout

The Nasdaq Composite shed approximately $2.5 trillion in market capitalization on Thursday as investors pulled back from artificial intelligence stocks. This sudden decline has cast a shadow over the planned initial public offering for Anthropic, the company behind the Claude chatbot. The selloff followed Tuesday's US midterm elections, which empowered politicians skeptical of rapid AI expansion and saw voters approve restrictions on data center development.

Anthropic had aimed to enter public markets during the week of November 16, ahead of the US Thanksgiving holiday. The company filed its IPO paperwork in late October but has not yet set a final price or size for the offering. It had projected raising up to $100 billion, a figure that would have made it the largest IPO in history. That milestone would have surpassed the record set by SpaceX in June.

Three major investors participating in the deal now believe the proposed valuation is too high. According to The Wall Street Journal, one of these backers suggested the company could be valued closer to $1 trillion. That represents a drop of roughly one-third from the previously anticipated price. Another potential buyer proposed cutting the amount of capital sought from $100 billion to approximately $80 billion. This investor noted that such a move would still leave Anthropic with more than $200 billion on its balance sheet.

The pressure on valuation stems from both market conditions and the company's specific financial profile. Anthropic's annualized revenue run rate exceeded $80 billion at the end of October, up from September figures. This growth is driven largely by demand for Claude Code, its AI programming tool, and adoption among business clients. However, the company still faces substantial expenses for computing infrastructure and model development. As of September 30, Anthropic held approximately $146.6 billion in cash.

Executives and financial advisers for Anthropic are expected to meet in the coming days to assess their options. The company has deliberately avoided committing to a definitive timetable, leaving room for adjustment. Some investors are now raising the possibility of delaying the offering until market conditions improve. That strategy carries its own risk, as institutional investors who lost money in the recent selloff may be hesitant to commit large sums to another major AI investment so soon.

The fate of this listing could have ripple effects across the technology sector. Anthropic maintains extensive commercial relationships with major firms including Google, Amazon, and Nvidia. Its expansion is linked to the broader AI infrastructure industry, which has attracted massive investment in computing capacity. A reduced valuation or delay could impact other tech businesses whose stock prices depend on expectations of continued AI spending.

Scrutiny is not limited to Anthropic. Its rival OpenAI has reportedly secured approximately $11 billion of the $30 billion it sought in its latest funding round. That deal valued the ChatGPT developer at approximately $1.25 trillion, below its original expectations. For now, Anthropic's valuation, fundraising target, and listing date remain undecided.