Anthropic's $1.5tn IPO valuation faces investor pushback

Artificial intelligence company Anthropic is encountering investor pushback against its proposed $1.5 trillion IPO valuation, potentially postponing a November listing, according to Reuters. The report cites sources familiar with investor discussions who say prospective investors are questioning the valuation's sustainability and requesting more favorable pricing before investing.

The company was set to launch its investor roadshow beginning November 9th, with pricing anticipated the following week, but talks about timing and valuation are still ongoing. Investor concerns have grown following a large sell-off in AI-related equities, as well as uncertainty surrounding the profitability of large-scale infrastructure spending and mounting political opposition to data center development.

Investors are also waiting for Anthropic's October revenue figures to evaluate its growth trajectory, especially given the company's significant capital needs and ongoing losses. This delay emphasizes the growing scrutiny of private market technology valuations as major AI firms begin transitioning to public ownership. While previously associated with valuations reaching $2 trillion, a weaker market environment could necessitate a revision in Anthropic's listing price, one of the most anticipated tech listings of the year.