Investors temper Anthropic IPO valuation expectations over revenue growth slowdown, sources say

New York, October 15 - Some existing and prospective investors in Anthropic's upcoming IPO are considering a reduced valuation for the AI firm following its latest financial disclosures and broader worries about the escalating expense of AI development. Sources indicate investors anticipated a valuation near $1.5 trillion, markedly lower than the previously projected $2 trillion.

During Anthropic's investor day in San Francisco, the company disclosed a 45% increase in revenue to $16.8 billion in the third quarter, with adjusted profitability that quarter. While these figures alleviated some concerns about the high costs of AI development, investors were troubled by the deceleration in growth rate, as revenue more than doubled from the first quarter to $11.6 billion in the second quarter.

Anthropic declined to comment on the matter. A potentially lower valuation for Anthropic's IPO could negatively impact the broader AI market, which investors believe hinges on the success of the share sale, followed by OpenAI's potential listing next year. The recent tech selloff has adversely affected AI infrastructure companies, chipmakers, and cloud providers that rent computing power for AI.