Investor Doubts Raise Questions Over Anthropic's Planned IPO and Valuation

Potential investors in Anthropic's anticipated initial public offering are raising doubts about whether the artificial intelligence startup can proceed with its planned roadshow in time for a November listing. Four people familiar with investor discussions indicated that investors are pushing for a more attractive valuation to commit to the offering.

Some participants view the recently discussed $1.5 trillion valuation as being at the high end of expectations. Earlier this year, investors expected the IPO to take place in October with a valuation as high as $2 trillion. The roadshow was initially expected to kick off the week of November 9, with pricing expected the following week. Anthropic has declined to comment on investor doubts.

The discussions reflect the impact of a sharp technology stocks selloff and geopolitical uncertainty clouding the outlook for new offerings. Anthropic may need to offer a bigger discount to secure investor commitments, particularly as market participants recognize the company's need to raise capital given a record of quarterly losses and large commitments made to partners in the AI buildout.

Additionally, investors are awaiting Anthropic's October revenue figure, which the company left blank in its updated S-1 filing, to assess whether the AI lab has managed to boost growth after a slowdown in recent months. Wall Street and Silicon Valley have questioned whether the company will move forward following a two-day AI market selloff triggered by US midterm elections.

A decision to delay the offering could fuel further concern over the health of the AI ecosystem. This comes at a time when the success of ballot efforts in many states limiting data center development has crystallized political opposition to data centers and other aspects of AI. An Anthropic delay could also pose a threat to the broader stock market, which is heavily weighted toward large technology firms whose valuations could be squeezed.

Despite the selling pressure, many investors remain bullish on the AI buildout. Some analysts note that Anthropic is likely to benefit from strong retail investor demand. Rick Meckler, partner at Cherry Lane Investments, noted that such companies remain a part of the future and will eventually go public as valuations pull back from extended private market highs.

If the market for AI-related assets remains under pressure, Anthropic could decide to delay the offering until conditions look more resilient. Trading conditions have remained volatile, with Microsoft tightening oversight of some data center projects from neocloud providers, and credit default swaps covering AI-related firms hitting record levels amid broader technology sector underperformance.

"The situation surrounding Anthropic highlights a critical phase in the maturation of the artificial intelligence sector. When market sentiment shifts and public valuations face scrutiny, high-growth startups must balance their capital requirements with realistic pricing expectations. Investors are increasingly demanding clear financial metrics and revenue visibility before committing massive capital, which may lead to temporary delays in major public offerings across the tech ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes