Anthropic IPO valuation faces scrutiny as investors push for lower price point

Reports indicate that Anthropic's planned Initial Public Offering is encountering significant investor skepticism regarding its valuation, with some parties suggesting the current estimate of $1.5 trillion remains excessive. The company has declined to comment on these concerns. Initially targeting a $2 trillion valuation for its IPO, Anthropic's initial timeline suggested roadshows in the week of November 9th, with pricing the following week and a potential listing in November. However, prospective institutional investors have since signaled a preference for a valuation between $1.5 trillion and $1.6 trillion by late November. Furthermore, some major participants in the IPO believe the valuation should drop even further, with one investor suggesting a figure closer to $1 trillion. This divergence between the $2 trillion initial goal and the $1 trillion suggestion highlights a substantial gap in expectations. Investor caution is attributed to the broader tech stock selloff, Anthropic's prior quarterly losses, and its substantial commitments to AI infrastructure spending. Despite the valuation debates, The Information noted that Anthropic intends to continue its IPO roadshows and still aims for a public listing around the week of November 16th.