Anthropic IPO faces pressure to lower valuation after tech selloff

Anthropic is facing pressure to lower its valuation or delay its stock market debut as US technology stocks experience a sharp decline.

The company, which develops the Claude chatbot, had planned to launch an initial public offering during the week of November 16. Its filing, made public in late October, anticipated raising as much as $100 billion, a figure that could have made it the largest IPO in history. However, three major investors participating in the offering now believe the proposed price is too high. One backer suggested the company might be valued closer to $1 trillion, a drop of approximately one-third from the previous target. Another investor proposed reducing the total amount raised to approximately $80 billion, a move that would still leave the company with more than $200 billion in cash on its balance sheet.

The shift in investor sentiment follows a severe market correction. On Thursday, the Nasdaq Composite lost about $2.5 trillion in market capitalization as investors moved away from AI-related assets. This selling pressure intensified after Tuesday’s US midterm elections, which strengthened the political position of candidates skeptical of the industry's rapid expansion. Voters in several areas also approved restrictions that could complicate the development of new data centers, adding to regulatory concerns.

Despite the market turmoil, Anthropic’s financial metrics show strong growth. The company’s annualized revenue run rate exceeded $80 billion at the end of October, up from September levels. This growth is driven by demand for Claude Code and expanding business adoption. The company also reported holding approximately $146.6 billion in cash as of September 30. Yet, expenses for computing infrastructure and model development remain high, keeping pressure on margins.

Reactions to the potential downsizing are mixed among potential buyers. Some investors are hesitant to commit to a major valuation cut before reviewing Anthropic’s latest October results. Others see the current market conditions as a sign that the sector may need a reset. A delayed offering is also being considered, though this carries its own risks. Institutional investors who just took losses in the recent selloff may be reluctant to deploy large amounts of capital into another massive AI transaction immediately.

The uncertainty at Anthropic has broader implications for the tech sector. The company maintains commercial and financial ties with major firms including Google, Amazon, and Nvidia. Its expansion is linked to the wider AI infrastructure industry, which has attracted heavy investment in computing capacity. A reduced valuation could signal a shift in how other technology companies are priced, particularly those relying on continued growth in AI spending. Rival OpenAI has also faced challenges, reportedly securing only $11 billion of the $30 billion it sought in its latest funding round at a valuation of approximately $1.25 trillion.

Anthropic executives and financial advisers are scheduled to meet in the coming days to assess their options. The company has intentionally avoided setting a definitive valuation, fundraising target, or timetable for the listing. This flexibility allows it to adjust its plans based on market conditions. The decision will determine whether the company proceeds with a smaller transaction, delays its entry into public markets, or attempts to maintain its original ambitious targets.