Anthropic's planned IPO is running into serious headwinds as potential investors push back hard on its valuation. According to Bloomberg, some buyers are now eyeing a figure as low as $1.1 trillion, while The Decoder reports that others consider even the $1.5 trillion target too rich.
The resistance marks a sharp reversal. As recently as September, Anthropic was reportedly eyeing a valuation of up to $2 trillion. Now, with the tech market under pressure, the company may struggle to launch its roadshow next week as scheduled.
Anthropic IPO valuation under pressure
The pushback is driven by two main factors, according to The Decoder. First, Anthropic is still losing money and burning through cash to scale its AI infrastructure, which makes investors demand a steeper discount. Second, October revenue numbers are missing from the updated S-1 filing, leaving backers without a key data point they want before committing.
Reuters reports that potential backers doubt the planned roadshow can kick off next week as scheduled. The Wall Street Journal also notes that IPO investors are skeptical, adding to the sense that the offering is far from a done deal.
- Anthropic IPO valuation target: $1.5 trillion
- Lowest valuation floated by investors: $1.1 trillion
- Previous valuation eyed in September: up to $2 trillion
- Estimated IPO size: up to $100 billion
