Anthropic, the developer of the Claude artificial intelligence model, may not meet its planned November initial public offering after a growing number of potential institutional investors expressed doubts about the company's previously discussed $1.5 trillion valuation. Four sources familiar with investor briefings told Reuters that the IPO’s original timetable is now in question.
Schedule and investor concerns
The company was scheduled to begin its investor roadshow the week of November 9, with pricing expected the following week. But in the current market environment — amid a sharp selloff in US technology stocks — many institutional investors consider the $1.5 trillion valuation too high and are seeking a lower offer price to participate. Earlier reports indicated Anthropic had at times considered valuations as high as $2 trillion.
Anthropic has not announced a postponement of the offering and declined to comment to Reuters on investor concerns.
Stakes of the transaction
The deal could be far larger than a typical tech IPO: some estimates suggested Anthropic might raise as much as $100 billion in fresh capital, which would rank among the largest equity offerings in history. Investors have grown more cautious about AI company valuations, particularly after the sector committed substantial sums to data centers, chips and computing capacity.
Financials and performance trends
In documents released in early November, Anthropic reported third-quarter revenue of $16.96 billion, a 47 percent increase year-over-year. While significant, that growth rate represents a slowdown from the 144 percent increase recorded in the second quarter. The company also disclosed roughly $900 billion in AI-related infrastructure commitments.
Anthropic posted a net loss of $80.7 billion in the first half of the year, of which $72 billion was due to non-cash accounting revaluations tied to convertible debt. For investors, a central question is whether the rapid revenue growth can keep pace with the company’s large financing needs.
Market participants are also watching October revenue, which was not included in the company’s updated IPO paperwork; that figure could help assess whether growth has accelerated again.
Market backdrop and implications
The uncertainty has emerged amid a particularly unfavorable market backdrop: US technology stocks suffered steep losses, and investors are weighing the returns on heavy AI investments alongside increased regulatory risks following the midterm elections. As a result, Anthropic’s IPO may serve as an important test for the broader technology sector — a delay or weaker pricing could add further strain to an already pressured market.
This article is not investment advice.
