Anthropic faces investor resistance regarding its planned November listing at a $1.5 trillion valuation. Many institutional investors now question this high price amid a sharp selloff in technology stocks. Some believe the valuation must fall closer to $1 trillion to attract demand, potentially forcing a delay to the company's plans.
Anthropic's proposed IPO is facing growing investor resistance amid a sharp selloff in technology stocks. Investors are questioning whether the AI startup can proceed with its planned November listing at a $1.5 trillion valuation, with a possible delay also emerging as an option, Reuters reported. (Sources: Reuters, Investing.com, Financial Express)
The proposed $1.5 trillion valuation is increasingly being viewed as expensive by institutional investors. According to a Wall Street Journal report cited by Investing.com and Financial Express, some investors believe the valuation may need to fall closer to $1 trillion to attract sufficient demand.
Anthropic was targeting an IPO that could raise as much as $100 billion, potentially making it one of the largest stock market listings ever. The company had been preparing to begin its investor roadshow in the week of November 9, with a November listing in sight. However, market volatility could force a reassessment of the timeline.
The concerns come after a sharp technology-stock selloff that has weakened appetite for AI-related investments. Heavy losses in AI infrastructure companies and growing concerns about the sustainability of massive data centre investments have made institutional investors more cautious about high valuations.
A postponement or a sharply lower valuation could deepen concerns about the broader AI investment boom. Anthropic's listing is being viewed as an important test of investor appetite for AI companies, particularly after recent volatility in technology stocks. However, some investors remain confident about long-term AI demand, even as expectations for private-market valuations begin to cool.