After AI stocks plummeted, markets are questioning whether Anthropic’s IPO can justify its $1.5 trillion valuation.

According to people familiar with the matter, following a sharp stock market sell-off triggered by the liquidation of AI-related investments, major investors are growing skeptical about whether Anthropic’s initial public offering (IPO) can hit its targeted $1.5 trillion valuation. Anthropic had originally planned to debut its IPO during the week of November 16, with the offering expected to raise up to $100 billion, putting the company’s valuation at around $1.5 trillion. However, three large investors planning to participate in the IPO said the valuation may need to be adjusted downward, with one noting it could be closer to $1 trillion. Another investor said that even if the market rebounds, convincing institutional investors that recently suffered losses in the sell-off to take on significant risks in the AI sector again could be a challenge. This investor expressed doubt that Anthropic will delay the offering, adding that another option is the company may raise less capital than expected. People familiar with the matter said Anthropic’s executives and their advisors are expected to hold meetings in the coming days to discuss IPO plans. Some added that they have avoided committing to specific plans throughout the process to retain flexibility.