Investors temper Anthropic IPO valuation expectations over revenue growth slowdown: sources
A cooler reception for the firm’s listing could weigh on the wider AI market
Investors are lowering their expectations for Anthropic's upcoming IPO valuation due to a slowdown in revenue growth, according to four sources familiar with the matter. Following the company's investor day in San Francisco, some investors now anticipate a valuation of around US$1.5 trillion, down from the previously expected US$2 trillion.
Despite reporting a 45% jump in Q3 revenue to US$16.8 billion and profitability on an adjusted basis during the quarter, investors were disappointed by the slower sequential growth rate in Q3 compared to Q2. This could potentially impact the wider AI market, which investors believe is heavily dependent on the success of Anthropic's IPO, followed by OpenAI's potential listing later this year.
The AI industry is currently facing challenges due to the high costs of financing AI development, with companies like Nvidia-backed CoreWeave and AI infrastructure providers also feeling the pressure.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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