The steep downturn in major tech stocks has redrawn Wall Street’s expectations for Anthropic’s initial public offering, lowering the target valuation from $2 trillion to a range hovering around $1.5 trillion.
Target valuation drops to the $1.4 trillion to $1.6 trillion range
Tech stock sell-off and losses at Intel, Amazon, and Alphabet
Accelerating revenue growth to $17 billion and spending exceeding $895 billion
A crucial test for AI sector sentiment in financial markets
Frequently Asked Questions
Target valuation drops to the $1.4 trillion to $1.6 trillion range
Major investors are lowering their price expectations for Anthropic ahead of its upcoming initial public offering. The sharp sell-off in technology stocks over the past week has left institutional buyers planning to participate in the deal in agreement on a lower valuation for the developer of the “Claude” model, according to The Wall Street Journal. In recent days, these investors informed Anthropic and its financial advisors that a fair valuation for the IPO, planned for later this month, ranges between $1.5 trillion and $1.6 trillion, the newspaper reported, well below estimates near $2 trillion circulated in previous months.
Bloomberg sources placed the figure slightly lower, with investors telling bankers their view of fair value had shifted to about $1.4 trillion to $1.5 trillion, though a valuation closer to $1.75 trillion might still be possible. Separately, Reuters reported that some investors discussed a valuation close to $1.5 trillion, according to The Economic Times.
Tech stock sell-off and losses at Intel, Amazon, and Alphabet
These lower price targets follow a very rough week for artificial intelligence stocks. On Friday, October 30, Intel shares plummeted nearly 30 percent after issuing weak forward guidance, Amazon stock dropped after missing earnings expectations and signaling heavier spending on artificial intelligence, and the Nasdaq Composite finished the day down about 3 percent, according to Agence France-Presse. The index ended October with its worst monthly decline since March 2025, after Alphabet lost more than $500 billion of its market value in a single trading session, according to the BBC. Financial commentators tied the public offering to market mood, with Jim Cramer writing on the X platform on Sunday: “I think the goal of the shorts there is to kill the Anthropic IPO,” according to 24/7 Wall St.
Accelerating revenue growth to $17 billion and spending exceeding $895 billion
On Monday, Anthropic filed new financial figures with the U.S. Securities and Exchange Commission showing third-quarter revenue approaching $17 billion, up from just $1.4 billion a year earlier. The company also disclosed plans to spend more than $895 billion in the coming years, according to Bloomberg. Anthropic published its prospectus to the public on October 26, planning to list on the Nasdaq exchange under the ticker symbol “ANT” and hoping to raise about $100 billion in stock sales. Goldman Sachs and Morgan Stanley are leading the deal, while JPMorgan will lead sales targeted at retail investors in the United States, and the listing could take place as early as the week of November 16 following a roadshow beginning the week of November 9, according to Empower.
A crucial test for AI sector sentiment in financial markets
Even at the lower price range, the valuation will still be well above the $965 billion set in Anthropic’s last private funding round. Fund managers are watching the deal as a test of market confidence in artificial intelligence; Jason Da Silva of Arbuthnot Latham told Reuters: “If the listing is weak, I think that could signal some future weakness,” while Jim Lebenthal of Cerity Partners told Bloomberg: “It’s a very big ask to justify a $1.5 trillion to $2 trillion valuation.”
Frequently Asked Questions
Question: What is the new valuation demanded by investors for Anthropic’s offering?
Answer: Institutional investors see a fair valuation between $1.4 trillion and $1.6 trillion, down from previous estimates near $2 trillion.
Question: What were Anthropic’s third-quarter revenue and future spending commitment figures?
Answer: Third-quarter revenue jumped to nearly $17 billion compared to about $1.4 billion a year ago, with plans to spend more than $895 billion in the coming years.
Question: When is Anthropic’s stock expected to list on the Nasdaq, and which banks are leading?
Answer: The roadshow is expected to begin the week of November 9 and the listing the week of November 16 to sell about $100 billion in shares, led by Goldman Sachs, Morgan Stanley, and JPMorgan.
Question: What was Anthropic’s valuation in its last private funding round before the public offering?
Answer: Anthropic was valued at approximately $965 billion USD in its last private funding round.