Investors push back on Anthropic’s $1.5 trillion IPO valuation

Investors challenge Anthropic’s $1.5 trillion IPO valuation

Investors are demanding a larger discount because Anthropic is still unprofitable and is spending heavily to build out AI infrastructure. They are also waiting for October revenue figures, which are absent from the updated S-1 registration statement.

The U.S. midterm elections also affected sentiment. Measures opposing the expansion of data centers passed in several states, after which the tech market suffered its sharpest drop in a year. The Wall Street Journal has also reported skepticism among investors taking part in the IPO.

Estimates of the offering’s size reach $100 billion. If shares in AI-related companies continue to fall, Anthropic may postpone its IPO. Such a delay could, in turn, further undermine confidence in the sector as a whole.

Dataist’s take: the offering’s prospects depend not only on the company’s valuation but also on how investors view its losses, spending and missing revenue figures. A possible delay to Anthropic’s IPO could affect confidence in the AI sector as a whole.