Anthropic may need to cut $1.5-T IPO goal as investors balk: report

Anthropic, an artificial intelligence company, may need to adjust its expectations for its upcoming stock market debut, according to a report from the Wall Street Journal. The company had been targeting a valuation of $1.5 trillion for its IPO, which was expected to raise up to $100 billion and make it the largest IPO on record.

However, key investors are concerned about the sharp sell-off in the tech sector, which has spooked the market. Three major investors who plan to participate in the offering told the Journal that the valuation may need to be lowered, with one suggesting it could be closer to $1 trillion. Another investor even raised the possibility of postponing the listing.

Previous estimates had placed the valuation between $1.5 and $2 trillion. Anthropic's close business ties to tech giants Google, Amazon, and Nvidia give its plans significant implications for the markets and the economy. The company had been expected to list its shares the week of November 16. Rival OpenAI has delayed its own plans to go public until the following year.

In response to the market uncertainty, AI-related investments have dropped, with Nasdaq composite companies losing $2.5 trillion in market value on Thursday.