Anthropic IPO Faces Valuation Pressure as AI Selloff Deepens Investor Skepticism

Anthropic's highly anticipated initial public offering is being repriced in real time as a sharp selloff in technology stocks and growing investor skepticism force valuation expectations lower. Prospective investors are now discussing a valuation of $1.2 trillion to $1.3 trillion, down from the $1.4 trillion to $1.5 trillion range communicated to bankers just days earlier, Bloomberg reported Friday, citing people familiar with the matter. The Wall Street Journal reported Thursday that three major prospective investors said the offering would need to be priced lower, with one suggesting a valuation closer to $1 trillion.

The reassessment follows a brutal day for technology stocks. The Nasdaq Composite plunged roughly 6% on Thursday, wiping out approximately $2.5 trillion in market capitalization as investors fled AI-related assets. The Cboe Volatility Index climbed to its highest level since April 2025, according to Bloomberg.

The selloff was fueled by the outcome of Tuesday's U.S. midterm elections, which strengthened the position of politicians skeptical of the industry's rapid expansion and saw voters approve restrictions that could complicate data center development, the Wall Street Journal reported. Ballot measures in multiple states limiting data center development have crystallized political opposition to AI infrastructure, Reuters reported, citing people familiar with investor discussions.

**Roadshow timeline in doubt**

Anthropic's roadshow was initially expected to kick off in the week of November 9, with pricing the following week, Reuters previously reported. But four people familiar with investor discussions told Reuters that potential investors are raising doubts about whether the company can proceed on that timeline.

The company made its IPO filing public in late October. According to Yahoo Finance, the earliest possible roadshow start is November 10, with the earliest trading date being November 16, based on SEC rules. SpaceX, which went public in June, provides a recent comparison: it went from public filing to first trade in 23 days.

Anthropic has not confirmed an official IPO date or disclosed how many shares it plans to sell. The company declined to comment on investor doubts, Reuters reported.

**Financials show explosive growth but heavy losses**

Anthropic's amended S-1 filing, made public in late October, reveals the scale of both the opportunity and the capital intensity. Revenue reached $17 billion in the third quarter of 2026, up 12 times year-over-year, according to Bloomberg. Nine-month revenue totaled $33.24 billion.

The company reported an operating profit of $974 million in the second quarter, according to its S-1 filing, as noted by a dev.to analysis. However, Anthropic swung to an operating loss of $567 million in the third quarter, primarily due to securing $5 billion worth of short-term compute, the analysis noted.

Net loss for the third quarter was $23.3 billion, with $104 billion for the first nine months, Bloomberg reported. The filing shows 90% of the first-half loss came from fair-value remeasurement of convertible notes — an accounting effect that largely disappears after the IPO when notes convert to equity.

Investors are eagerly awaiting Anthropic's October revenue figure, which the company left blank in its updated S-1, Reuters reported, citing two people familiar with the matter. The figure is seen as key to assessing whether growth has accelerated after a slowdown in recent months.

**Massive compute commitments raise concerns**

Anthropic disclosed spending commitments totaling $895.4 billion, overwhelmingly tied to compute and infrastructure, with $69.8 billion of that due within the next 12 months, according to its S-1 filing. Nearly $447.5 billion is due by the end of 2030, Bloomberg reported.

The commitments explain why Anthropic needs to raise capital at scale. The IPO, led by Goldman Sachs and Morgan Stanley with 20 other banks, aims to raise at least as much as SpaceX's record $86.2 billion debut, Bloomberg reported. The stock would trade on Nasdaq under ticker ANT.

The company's near-term compute obligation is roughly four times current quarterly revenue, according to Bloomberg.

**Broader market impact**

The uncertainty around Anthropic's IPO is rippling through the broader AI ecosystem. Microsoft tightened oversight of some data center projects from neocloud providers Nebius, IREN, and Nscale, Bloomberg News reported Thursday. Nebius, IREN, and CoreWeave have each lost roughly half their market value over the past month, Reuters reported.

Credit default swaps covering CoreWeave and SpaceX hit records, implying an increasing expectation that they could default on their obligations in coming years, Reuters reported, citing data.

More than 50 S&P 1500 technology stocks dropped by 10% or more, and Vanda Research said retail selling was the strongest it had been since the Covid-19 pandemic, Reuters reported.

Tech stocks have underperformed the S&P 500 by 10.7% over the past month — the most extreme one-month underperformance since May 2002, according to Truist Advisory Services, as cited by Reuters.

"We are now seeing something of a buyers' strike in tech," Keith Lerner, chief investment officer at Truist Advisory Services in Atlanta, told Reuters.

**What's next**

Whether Anthropic proceeds at a lower valuation, seeks a smaller raise, or delays past Thanksgiving remains uncertain. The Wall Street Journal reported that one prospective investor suggested the company could reduce the amount it seeks to raise from $100 billion to approximately $80 billion. Another investor raised the possibility of delaying the offering until market conditions improve.

Anthropic executives and financial advisers are expected to meet in the coming days to assess their options, according to the Journal. The company has deliberately avoided committing to a definitive valuation, fundraising target or timetable, leaving room to adjust its plans.

A decision to delay the offering would likely fuel further concern over the health of the AI ecosystem, Reuters reported. An Anthropic delay could also pose a threat to the broader stock market, which is heavily weighted towards large technology firms whose valuations would likely be squeezed by any sense that one of the highest-profile AI firms is finding it difficult to raise funds.