Anthropic IPO Investors Push for a Valuation of $1.5 Trillion to $1.6 Trillion

The investors gave that guidance to Anthropic and its advisers over the past several days, according to the report as summarised by investingLive. Anthropic has not settled on a valuation target or on how many shares it will sell. A roadshow could begin as soon as next week, and the company is aiming to list in the week before Thanksgiving.

Why Buyers Want A Lower Price

The push follows a sharp tech selloff last week, which included double-digit falls in Intel and Alphabet shares after their earnings. Investors also pointed to volatile markets, concern about holding too much AI exposure, political opposition to new data centres, and uncertainty over when large cloud providers such as Amazon and Meta Platforms will earn a return on their AI spending, according to the report.

Some investors expect chief financial officer Krishna Rao to price the deal conservatively so the shares rise on the first day, and some believe a debut near $1.5 trillion could climb toward $2 trillion by the end of the first session. Anthropic is expected to propose a price range, unlike SpaceX, which named a single price for its listing. SpaceX shares rose 30% on their first day of trading in June, before worries about AI spending spread more widely.

The lower figure has been around for weeks. Reuters reported on October 15, citing people familiar with the matter, that some current and prospective investors were considering a $1.5 trillion valuation, a figure that came up at an investor day at Anthropic's San Francisco headquarters, according to 24/7 Wall St.

The Numbers Behind The Debate

The valuation talks come as Anthropic's latest amended filing showed growth slowing. Revenue was $17 billion in the quarter to September 30, up from about $11.6 billion in the prior quarter, according to investingLive. Earlier reporting put third-quarter revenue at $16.8 billion, a 45% quarter-on-quarter increase, after second-quarter revenue more than doubled. About $600 million in price reductions from new model versions and contract discounts partly offset the growth.

The filing also listed about $895 billion in computing purchase commitments and leases. Nearly $450 billion of that is expected to fall due before the end of 2030, with most of the rest due between 2031 and 2045.

What It Means

At $1.5 trillion, Anthropic would still be among the most valuable companies ever to go public. The gap between that figure and $2 trillion shows how much market sentiment toward AI has turned in a matter of weeks, and investors are now paying more for growth than for revenue scale. The pricing will also test the value of Amazon's and Alphabet's large Anthropic stakes, which both companies hold at carrying values they have not disclosed. Anthropic has not commented publicly on the valuation discussions.