Anthropic's IPO has faced weak demand, with investors demanding a valuation cut to $1 trillion, as the firm's annualized revenue just surpassed $80 billion in October.
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Beating AI Express News: Following a sell-off in tech stocks, Anthropic’s initial public offering (IPO) is facing valuation pressure. The Wall Street Journal reports that three large institutional investors planning to participate in the IPO view the previously expected $1.5 trillion valuation as still too high, with one suggesting it should be cut to roughly $1 trillion. Anthropic’s revenue continues to grow rapidly. Insiders reveal that as of the end of October, the company’s annualized revenue run rate exceeded $80 billion, up from just over $65 billion at the end of July—an increase of $15 billion in three months. Investors hold differing views on the IPO plan: Some want to wait to review October’s financial results before deciding whether to accept a valuation reduction; one investor proposed trimming the fundraising size from the previously anticipated $100 billion to around $80 billion; another suggested delaying the IPO if market weakness persists, waiting for conditions to improve before going public. These views are only feedback from potential buyers to the company, with final decision-making power lying with Anthropic and its underwriters. However, if large institutions are unwilling to subscribe at the original valuation, Anthropic will have to reconsider its offering price, fundraising scale, and even the timing of its IPO.
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