Anthropic's record-breaking IPO faces uncertainty after $2.5 trillion tech wipeout - report

Anthropic's planned $1.5 trillion initial public offering is facing mounting pressure from major investors following a sharp selloff in US technology stocks, with some backers now calling for a substantially lower valuation or a possible postponement, The Wall Street Journal reported on Thursday.

The artificial intelligence company, which develops the Claude chatbot, has been preparing to enter public markets during the week of November 16, ahead of the US Thanksgiving holiday. Its anticipated offering could raise as much as $100 billion, potentially making it the largest IPO in history. The company made its IPO filing public in late October, although its final offering price and size remain undecided.

However, three major investors intending to participate in the offering believe the proposed valuation will have to be reduced, according to the Journal. One investor suggested the company could be valued closer to $1 trillion, representing a decline of approximately one-third from its previously anticipated price.

The shift reflects growing concerns across Wall Street about the sustainability of valuations attached to AI companies, particularly after a wave of selling wiped trillions of dollars from US technology stocks.

The Nasdaq Composite suffered a severe selloff on Thursday, with companies in the index losing approximately $2.5 trillion in market capitalization as investors moved away from AI-related investments. The decline followed Tuesday's US midterm elections, which strengthened the position of politicians skeptical of the industry's rapid expansion and saw voters approve restrictions that could complicate data center development.

Until recently, Anthropic had been viewed as one of the most sought-after companies preparing to enter the stock market. Investors had spent months anticipating the listing, even as concerns emerged about the extraordinary spending required to develop and operate increasingly sophisticated AI systems.

The company had already taken a major step toward its debut when it revealed rapid revenue growth alongside substantial losses and infrastructure commitments.

Strong revenue growth may not be enough to support valuation

Despite the increasingly difficult market environment, Anthropic's financial performance remains a significant factor in determining investor appetite.

The company's annualized revenue run rate exceeded $80 billion at the end of October, according to a person familiar with the figures the WSJ cited. The figure is up from September and suggests demand for its AI products continues to expand.

Some potential investors are therefore reluctant to assume that a major valuation reduction is inevitable before reviewing the company's October results.

Anthropic's earlier public financial disclosures showed rapid revenue growth, driven partly by demand for Claude Code, its AI-powered programming tool, and expanding adoption among business customers.

However, the company's extraordinary funding requirements remain a source of concern. Anthropic held approximately $146.6 billion in cash as of September 30, according to the Journal, but still faces substantial expenses tied to computing infrastructure, model development, and competition with other leading AI companies.

One prospective investor suggested Anthropic could reduce the amount it seeks to raise from $100 billion to approximately $80 billion. The same investor said the company could emerge from the offering with more than $200 billion on its balance sheet.

Such a reduction could allow Anthropic to proceed with a smaller transaction while still securing substantial funding for its expansion.

Another investor raised the possibility of delaying the offering until market conditions improve.

That option carries its own risks. Even if technology stocks recover, institutional investors suffering losses from the latest selloff may be reluctant to commit large amounts of capital to another major AI investment so soon.

Anthropic executives and financial advisers are expected to meet in the coming days to assess their options. According to the Journal, the company has deliberately avoided committing to a definitive valuation, fundraising target or timetable, leaving room to adjust its plans.

Anthropic IPO uncertainty threatens wider AI market

The consequences of a delayed or downsized Anthropic offering could extend well beyond the company itself.

Anthropic has extensive commercial and financial relationships with some of the world's largest technology companies, including Google, Amazon and Nvidia. Its continued expansion is closely connected to the broader AI infrastructure industry, which has attracted enormous investment in computing capacity and data centers.

The prospect of a record-breaking listing had previously helped fuel optimism across technology markets, with investors viewing Anthropic's public debut as an important test of demand for companies developing advanced AI models.

A reduction in the company's valuation could therefore affect other technology businesses whose market prices depend partly on expectations of continued growth in AI spending.

Those concerns have intensified following the US midterm elections. The resulting uncertainty over future restrictions on AI infrastructure has contributed to a broader decline in global technology stocks, as investors reassess the risks associated with the sector's expansion.

Anthropic is not the only major AI developer experiencing greater investor scrutiny.

Its principal rival, OpenAI, has reportedly secured approximately $11 billion of the $30 billion it initially sought in its latest funding round, according to the WSJ. The financing has valued the ChatGPT developer at approximately $1.25 trillion, below its original expectations.

The difficulties facing both companies highlight the growing divide between enthusiasm for AI technology and investors' willingness to finance its development at increasingly high valuations.

Anthropic was expected to surpass the IPO record set by Elon Musk's SpaceX in June. Whether it can still achieve that milestone will depend on its ability to persuade institutional investors that its revenue growth and long-term prospects justify the risks of investing amid increasingly volatile markets.

For now, the company's valuation, fundraising target, and listing date remain undecided, leaving one of the most anticipated stock market debuts of 2026 highly uncertain.