Anthropic IPO valuation cut to $1.5 trillion after revenue slowdown
Anthropic, the AI company founded in 2021 by former OpenAI executives, just saw its expected IPO valuation drop from $2 trillion to $1.5 trillion.
This happened after the company shared that its revenue jumped 45% last quarter to $16.8 billion, and it was profitable on an adjusted basis during the quarter
(impressive, but still slower than the previous quarter's revenue more than doubled from the first quarter to $11.6 billion in the second quarter).
That slowdown made investors a bit nervous and led to the big cut.
Google and Amazon backing cushions Anthropic
This lower valuation could shake up the whole AI market, which is already feeling pressure from a tech selloff.
Other AI players like CoreWeave are also struggling with funding worries right now.
Even so, Anthropic has strong backing from Google and Amazon, who are both investors and rivals, which might help it handle whatever comes after its IPO.