Investors weigh lower Anthropic IPO valuation after $2 trln expectations

Some existing investors in Anthropic, the world’s most valuable AI start-up, and prospective investors in its IPO are considering a lower valuation following its latest financial disclosures, Reuters reports, citing four sources. In August, the Financial Times reported that Anthropic investors expected it to go public at a valuation of $2 trillion or more. The company was hoping for the same, Reuters reported.

Investors who attended a meeting with Anthropic on Wednesday discussed an IPO valuation of around $1.5 trillion, three sources told Reuters. At the same meeting, the AI start-up stated that its third-quarter top line had risen almost 50% quarter over quarter to $16.8 billion and that it had posted an adjusted profit for a second consecutive quarter.

But some investors were disappointed by the slowdown in quarter-over-quarter growth: in the second quarter, for example, Anthropic’s revenue more than doubled from the first quarter to $11.6 billion, Reuters’ sources added. That compounded industry-wide concerns about the rising cost of financing AI development, the sources said. Anthropic did not respond to Reuters’ requests for comment.

Anthropic was valued at $965 billion in a May funding round, becoming the world’s most valuable start-up and overtaking ChatGPT developer OpenAI. By August, investors were expecting a valuation of $2 trillion or more, according to the FT. An offering at that level could eclipse SpaceX’s listing and mark the largest IPO ever. The start-up was targeting a $2 trillion valuation, Reuters reported in late September after reviewing Anthropic’s unpublished prospectus.

A cooler-than-expected reception for Anthropic’s IPO could weigh on the broader AI market, whose near-term prospects investors see as hinging largely on the offering’s success, potentially followed by an OpenAI listing next year, Reuters now reports. A disappointing Anthropic offering could deepen investor concerns about the scale of the AI infrastructure buildout, according to Reuters.

The IPO market has already suffered several recent setbacks. For example, data-center operator SB Energy delayed its listing in September, while nuclear tech company Holtec abandoned its plans to go public.