Anthropic may need to cut IPO ambitions as investors balk: report

Investors in Anthropic’s anticipated IPO are expressing concerns that the artificial intelligence startup may struggle to meet its planned roadshow timeline and secure adequate funding for a November listing, according to four sources familiar with investor discussions. The timing of the IPO has become a point of contention, with some investors pushing for a more attractive valuation after recent tech stock losses and geopolitical uncertainty dampened the outlook for new offerings.

Anthropic declined to comment on investor doubts, but the roadshow was initially expected to commence the week of Nov 9, with pricing anticipated the following week. The company may need to offer a larger discount to entice investors, especially given its history of quarterly losses and commitments to partners in the AI buildout.

Investor interest is also piqued by Anthropic’s October revenue figure, which was left blank in the company’s latest S-1 filing. Wall Street and Silicon Valley are closely watching Anthropic’s decision, fearing a delay could fuel broader concerns about the health of the AI ecosystem and trigger market-wide repercussions. Despite remaining bullish on the AI buildout, investors are wary of a potential delay, which could further erode sentiment in the tech sector.