Will AI backlash delay Anthropic IPO? Investors raise doubts

Investors are expressing concerns that could potentially delay Anthropic's highly anticipated IPO, according to sources familiar with the ongoing discussions. The startup's planned roadshow, initially expected to commence the week of November 9, may be pushed back and Anthropic may need to offer a bigger discount to secure commitments, sources say.

The current valuation of $1.5 trillion is viewed by some investors as being at the high end of expectations. Anthropic is eagerly awaiting its October revenue figure, which was left blank in its updated S-1 filing, to determine if the AI lab has managed to improve growth after a recent slowdown. The AI market experienced a sharp selloff following the US midterm elections, causing anxiety among investors about the health of the sector.

A delay in the IPO could exacerbate concerns about the AI ecosystem and potentially impact the broader technology market. Despite some analysts remaining bullish on the AI buildout, recent selling in AI-related assets has dampened sentiment. Anthropic's IPO, originally anticipated for October with a potential valuation of $2 trillion, may now face uncertainty as investors weigh the company's ability to raise capital amidst geopolitical uncertainty and a tech market under pressure.