Anthropic investors urge caution on IPO pricing, target $1.5T-$1.6T valuation - WSJ

Investors preparing to participate in Anthropic's (ANT) planned IPO are pushing for a valuation of $1.5T-$1.6T, below the roughly $2T discussed in recent months, as a selloff in technology stocks and concerns over AI spending weigh on appetite for the offering, The Wall Street Journal reported.

Institutional investors have communicated the lower valuation range to Anthropic and its advisers over the past several days, according to the report, that cites people familiar with the matter.

Their concerns include volatile technology markets, growing exposure to AI investments, political opposition to new data center construction, and uncertainty over when major cloud-computing companies will begin generating returns from their AI spending.

The AI firm has not finalized its IPO valuation or determined the number of shares it plans to sell. The company is preparing to begin its investor roadshow as soon as next week, with a market debut targeted for the week before Thanksgiving.

Anthropic is expected to set a price range ahead of its IPO, with some investors hoping CFO Krishna Rao will adopt a conservative pricing approach that leaves room for a first-day share-price gain.

The valuation debate comes as the company's latest financial disclosures highlight both its rapid revenue growth and the substantial costs of expanding its AI infrastructure.

Anthropic (ANT) reported Q3 revenue of $17B, up 47% Q/Q. It also disclosed $895.4B in computing purchase commitments and lease agreements, nearly half of which is expected to be incurred before the end of 2030.

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