Anthropic IPO valuation: Why investors are lowering expectations after Wall Street sell-off
Anthropic's ambitious initial public offering (IPO) plans are facing fresh valuation concerns after a sharp sell-off in US technology stocks, with prospective investors lowering their estimates of what the artificial intelligence company could be worth when it lists.
Investors are now discussing a valuation of around $1.2 trillion to $1.3 trillion for Anthropic, with some considering a figure as low as $1.1 trillion, Bloomberg reported. The deliberations are ongoing and no final decisions have been made.
The revised estimates mark a retreat from the $2 trillion valuation that Anthropic had reportedly been considering earlier. Even a valuation of $1.5 trillion is now facing resistance, with one investor describing that figure as a stretch, CNBC reported.
According to CNBC, some investors now see a valuation of $1 trillion to $1.25 trillion as a more realistic target, although expectations could change depending on market conditions.
The reassessment comes ahead of Anthropic's expected IPO roadshow next week. The company plans to list on the Nasdaq under the ticker symbol ANT, in what would be the first public offering by a developer of a so-called frontier AI model.
Also Read | Anthropic is rapidly accelerating AI development amid slowdown calls, outside research group says
The shift in investor sentiment follows a steep decline in technology stocks on Thursday. The Nasdaq Composite plunged more than 5%, its steepest fall in 19 months, while the Nasdaq 100 dropped 6.4%, wiping out $2.3 trillion in market value in a single session, Bloomberg reported.
The market rout has intensified concerns about the scale of spending by artificial intelligence companies and the sustainability of investments in data centres. Investors are also assessing the possibility of greater scrutiny of data centre expansion following Democrats' victories in the US midterm elections.
The Cboe Volatility Index rose to its highest level since April 2025 on Thursday, adding to concerns about launching a major public offering amid heightened market uncertainty.
Anthropic's valuation expectations have undergone several changes in recent months. The company was privately valued at $965 billion in May. Investors were considering a fair valuation of as much as $2 trillion in early October, Bloomberg reported.
That estimate subsequently moved down to around $1.4 trillion to $1.5 trillion following a company briefing on its latest financial performance in October. The latest market volatility has prompted another reassessment, with some prospective investors now discussing valuations closer to $1.2 trillion.
Max Kettner, chief multi-asset strategist at HSBC Holdings, told Bloomberg Radio that a valuation of around $1 trillion could offer investors greater comfort and reduce the risk of sharp price swings after the shares begin trading.
An analyst told CNBC that investors would expect the IPO to be priced at least at the lower end of earlier valuation expectations.
Anthropic and its existing shareholders could begin formal marketing with a conservative valuation and offering size, before considering an increase if initial investor demand proves strong, Bloomberg reported.
Another option would be to postpone the listing. Companies are required to make their IPO filings publicly available for at least 15 calendar days before beginning formal marketing. However, some issuers wait longer before launching their roadshows, allowing them to update financial disclosures and assess market conditions.
Michael Field, chief equity strategist at Morningstar, told Bloomberg that Anthropic may be willing to accept a lower valuation rather than delay the IPO. He said postponing the offering could carry longer-term valuation and reputational costs.
Anthropic also faces a valuation comparison with rival OpenAI. The former surpassed OpenAI in private valuation in May, when it raised funds at a $965 billion valuation. OpenAI is now targeting a pre-money valuation of $1.25 trillion in its latest funding round, Bloomberg reported.
Prabhakar Jha is a journalist and digital news editor with nearly a decade of experience in online media, specialising in breaking news, politics, national affairs. Having built his career across fast-paced digital newsrooms, he has developed a reputation for delivering accurate, timely, and reader-friendly stories while leading editorial teams during high-pressure news cycles. In 2026, he joined LiveMint as a Digital Content Producer. <br><br> A postgraduate in History from the University of Delhi, Prabhakar combines strong editorial judgment with a keen interest in public policy, governance, economics, and global affairs. Before joining LiveMint, he worked with leading digital publications, including News9Live and The Times of India, where he handled breaking news, copy editing, headline writing, live coverage, and newsroom coordination. <br><br> Beyond the newsroom, Prabhakar is passionate about long-form writing and storytelling. He has a particular interest in global affairs. An avid reader with a love for literary fiction, he also enjoys blogging, poetry, and working on creative writing projects.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.