Anthropic IPO Faces Valuation Pressure as AI Stock Rout Deepens

Anthropic’s highly anticipated initial public offering is under mounting pressure as investors balk at the proposed valuation and a sharp selloff in AI-related stocks casts doubt on the company’s ability to proceed with its planned November listing.

Potential investors are pushing for a more attractive valuation to commit to the offering, with some viewing the recently discussed $1.5 trillion figure as at the high end of expectations, four people familiar with investor discussions told Reuters. The Wall Street Journal reported Thursday that three major investors intending to participate believe the valuation will have to be reduced, with one suggesting the company could be valued closer to $1 trillion. Bloomberg reported Friday that 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 days earlier.

The reassessment follows a severe rout in technology stocks. The Nasdaq Composite plunged roughly 6 percent on Thursday, wiping out approximately $2.5 trillion in market value, according to multiple reports. The Cboe Volatility Index climbed to its highest level since April 2025, Bloomberg reported. Reuters reported that the selloff was the sharpest in a year, with more than 50 S&P 1500 technology stocks dropping by 10 percent or more. Vanda Research said retail selling was the strongest since the Covid-19 pandemic, according to Reuters. Tech stocks have underperformed the S&P 500 by 10.7 percent over the past month, the most extreme one-month underperformance since May 2002, Truist Advisory Services told Reuters.

The market turmoil follows Tuesday’s US 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. Reuters reported that ballot initiatives in multiple states limiting data center development have crystallized political opposition to AI infrastructure.

Anthropic’s roadshow was initially expected to kick off in the week of November 9, with pricing the following week, Reuters previously reported. However, four people familiar with investor discussions said potential investors are raising doubts about whether the company can proceed on that timeline, according to Reuters. A decision to delay the offering would likely fuel further concern over the health of the AI ecosystem, Reuters reported.

The company’s financial performance remains a key factor. Anthropic reported revenue of $17 billion in the third quarter of 2026, up 1,127 percent year-over-year, according to its amended S-1 filing. Nine-month revenue reached $33.24 billion. The company posted an operating profit of $974 million in the second quarter, but swung to an operating loss of $567 million in the third quarter, primarily due to securing $5 billion worth of short-term compute, according to the filing. Investors are eagerly awaiting Anthropic’s October revenue figure, which the company left blank in its updated S-1, Reuters reported.

The company disclosed $895.4 billion in purchase and lease agreements, “substantially all” for compute and infrastructure, with approximately $69.8 billion due in the 12 months after September 30, 2026, according to the filing. That near-term obligation is roughly four times current quarterly revenue.

The IPO is being led by Goldman Sachs and Morgan Stanley, with 20 other banks, Bloomberg reported. The stock would trade on Nasdaq under ticker ANT.

The uncertainty has also hit AI infrastructure companies. 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, according to Reuters. Credit default swaps covering CoreWeave and SpaceX hit records, implying an increasing expectation that they could default on their obligations, Reuters reported.

Even if Anthropic and its investors agree on a valuation, other factors could determine whether the company moves forward this year. If the market for AI-related assets remains under pressure, the company could decide to delay the offering until conditions improve, Reuters reported, citing people familiar with investor discussions. A delay could pose a threat to the broader stock market, which is heavily weighted toward 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, Reuters reported.

“We are now seeing something of a buyers' strike in tech,” Keith Lerner, chief investment officer at Truist Advisory Services in Atlanta, told Reuters. He described the selling so far as uncomfortable but not abnormal, while adding: “The rubber band is getting stretched.”

Jim Cramer said bears may derail Anthropic’s IPO, making it a key test for AI valuations amid debates over losses, pricing and bubble risks, Benzinga reported.