Anthropic IPO buyers weigh $1.1 trillion after AI rout

Prospective investors in Anthropic's initial public offering are now discussing a valuation of $1.2 trillion to $1.3 trillion, and some are considering a figure as low as $1.1 trillion, Bloomberg reported on Friday. The talks follow a sharp selloff in AI stocks after the midterm elections. The new range is a steep drop from the $1.4 trillion to $1.5 trillion buyers had recently told bankers, and from estimates as high as $2 trillion in early October, according to Bloomberg's reporting. People familiar with the matter said no final decisions have been made. Anthropic declined to comment.bloomberg.com+1

Investors push back

On Thursday, The Wall Street Journal reported that three major investors planning to take part in the offering expected the valuation to come down, with one putting it closer to $1 trillion. Anthropic has been aiming to list the week before Thanksgiving and was expected to raise up to $100 billion. Investors floated two alternatives, a smaller raise or a delay. The Journal said Anthropic executives and advisers are expected to meet in the next few days to discuss the plans.wsj.com

Reuters reported that potential buyers doubt the roadshow, planned for the week of November 9, can go ahead in time for a November listing. Some see $1.5 trillion as the high end of expectations. Investors are also waiting for Anthropic's October revenue figure, which the company left blank in its updated S-1 filing.reuters.com

A market rout

The Nasdaq 100 fell 6.4% on Thursday and lost a record $2.3 trillion in market value in a single day, while the Cboe Volatility Index hit its highest level since April 2025, Bloomberg noted. Investors were reacting to a Democratic sweep that raised the prospect of tighter limits on data center expansion. CNN reported that Anthropic recently disclosed nearly $900 billion in commitments for computing power and data centers. CNN also said odds on Kalshi of a November IPO dropped from above 90% to 60%.cnn.com+1

Lower price or delay

Some analysts expect the deal to go ahead at a lower price. "My view is that Anthropic can still come to market and will come to market [but] will likely be forced to do so at a lower valuation," Mike O'Rourke of JonesTrading told CNN. Max Kettner of HSBC said a valuation around $1 trillion could reduce the risk of volatility once trading begins. Morningstar strategist Michael Field argued that a delay could do more damage. He said the company would likely "get it done at a slightly lower valuation, suck it up and move on," according to Bloomberg.moneycontrol.com+1

The valuation also matters for Anthropic's position against OpenAI. Anthropic raised private funding at $965 billion in May, and OpenAI has since taken in $11 billion at $1.25 trillion, the Journal reported.wsj.com