Anthropic's $1.5 Trillion IPO Faces Investor Pushback Amid AI Stock Selloff

Artificial intelligence (AI) company Anthropic is facing investor resistance over its proposed $1.5 trillion initial public offering (IPO), following a sharp decline in US technology stocks, The Wall Street Journal (WSJ) reported.

Three prospective investors believe the valuation should be reduced, with one suggesting approximately $1 trillion, or $500 billion below earlier expectations.

Anthropic has reportedly targeted a listing before Thanksgiving, aiming to raise up to $100 billion. However, market volatility has raised questions about the valuation, fundraising target and timing.

Investors Seek Lower Valuation, Consider IPO Delay

According to the WSJ, one prospective investor questioned whether institutions would increase their exposure to AI companies after recent sector losses and suggested postponing the offering.

Another investor proposed reducing the fundraising target to around $80 billion.

Anthropic reportedly held $146.6 billion in cash as of Sept 30. One investor hoped the balance would exceed $200 billion following the listing.

Company executives and advisers are expected to review the plans shortly, although no final decisions have been announced.

Reuters separately reported uncertainty over whether Anthropic could begin its planned investor roadshow during the week starting Nov 9.

US Tech Selloff Raises Concerns Over AI Valuations

Investor caution intensified after Thursday's technology stock selloff, which reportedly erased $2.5 trillion from companies in the Nasdaq Composite.

The decline followed US midterm elections that brought greater scrutiny of AI expansion and potential restrictions affecting data centre development.

Despite the turbulence, Anthropic had previously attracted strong investor interest, supported by its business relationships with Google, Amazon and Nvidia.

However, concerns about valuations were already emerging across the sector.

The WSJ separately reported that rival OpenAI had secured approximately $11 billion against an initial $30 billion fundraising target.

That financing reportedly valued OpenAI at $1.25 trillion, below its earlier $1.4 trillion target.

For Anthropic, the proposed listing remains uncertain as investors reassess the financial outlook for major AI companies.

Its final valuation, fundraising amount and IPO date have yet to be determined.

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