Why Anthropic's $1.5T IPO is facing pushback from investors
What's the story
Anthropic's proposed $1.5 trillion valuation for its IPO is facing resistance from major investors, The Wall Street Journal reported. The pushback comes after a massive selloff in US tech stocks, with some potential backers calling for a lower valuation and even questioning the timing of the listing. Three major investors planning to participate in the offering have reportedly suggested that its proposed valuation may need to be lowered.
Market reaction
Investor concerns over valuation and market timing
One investor has even suggested that Anthropic's valuation could be closer to $1 trillion, some $500 billion lower than previously expected.
The company has been eyeing a listing in the week leading up to Thanksgiving, hoping to raise as much as $100 billion. But given the recent market volatility, those plans have become more complicated.
One investor wondered if institutional investors would want more exposure to AI companies after recent sector losses, even if markets recover.
Strategic reassessment
AI stock selloff and its impact on Anthropic
The uncertainty comes after a massive selloff in AI-related stocks, with Nasdaq Composite companies losing a total of $2.5 trillion in market value on November 5.
The decline came two days after the US midterm elections, which saw several AI-critical candidates gain power and voters approve measures that could impact data center development.
Despite this volatility, Anthropic's business relationships with tech giants such as Google, Amazon, and NVIDIA have kept it on investors' radar for its proposed listing.