Investors brace for Anthropic valuation, $1.5 trillion a 'stretch'
Investors are lowering their valuation expectations for Anthropic's upcoming IPO, with estimates dropping from $2 trillion to between $1 trillion and $1.25 trillion. This shift follows a broader market sell-off and concerns regarding the sustainability of AI infrastructure spending.
Why it matters
As a major player in the AI sector, Anthropic's IPO performance will serve as a bellwether for investor confidence in the broader artificial intelligence market.
Following tech's selloff on Wall Street this week, some investors are lowering their expectations for Anthropic.
The artificial intelligence company had been looking toward a $2 trillion valuation in its IPO up until recently, but stakeholders told CNBC that even $1.5 trillion is now in doubt, with one investor calling that number a "stretch."
The change in sentiment comes alongside growing concerns about the outsized spending by AI companies and a sharp post-midterm slump in the market. The Nasdaq plummeted more than 5% on Thursday, its steepest drop in 19 months, reflecting fears that Democrats' newfound power in Washington, D.C., and a nationwide rebuke of AI will lead to a slowdown in the buildout of data centers.
Bearishness on the AI trade was on the rise before the election. The Nasdaq suffered its worst month in October since March 2025, led by declines in chipmakers and neoclouds.
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Anthropic Faces Valuation Cuts and Political Backlash Ahead of Public Offering
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