The Anthropic IPO, planned as one of the largest stock market debuts in history, is facing resistance from prospective investors. The Wall Street Journal reported that three potential participants think the proposed $1.5 trillion valuation is too high. The pushback follows a sharp selloff in US technology stocks this week.
What Happened to the Anthropic IPO Plans
According to the Wall Street Journal, as summarized by the Free Press Journal, three prospective investors believe the valuation should be lowered. One suggested a level of about $1 trillion, which is $500 billion below earlier expectations.
Anthropic has reportedly targeted a listing before Thanksgiving and aims to raise up to $100 billion. One investor questioned whether institutions would add exposure to AI companies after recent losses and suggested postponing the offering. Another proposed cutting the fundraising target to about $80 billion.
Company executives and advisers are expected to review the plans shortly. No final decisions have been announced. Investing.com noted that Anthropic has not yet set formal offering terms, so the valuation, amount raised and date remain undetermined.
Reuters separately reported uncertainty over whether Anthropic can begin its planned investor roadshow during the week starting November 9.
Key Details From the IPO Filing
Anthropic filed for an IPO on October 26, according to Investing.com. An amended filing on November 2 gave investors a closer look at its finances.
The company reported third-quarter revenue of about $16.96 billion, up more than twelvefold from a year earlier. It also disclosed a net loss of $23.29 billion for the quarter.
The filing showed about $895.4 billion in aggregate purchase commitments and lease agreements, substantially all related to computing power and infrastructure. About $447.5 billion is expected to be incurred by the end of 2030, and nearly $70 billion falls due within 12 months of September 30.
The Wall Street Journal reported that Anthropic held $146.6 billion in cash as of September 30. One investor hoped the balance would exceed $200 billion after the listing.
A Warning About Infrastructure Financing
In its filing, Anthropic warned of financing risks beyond its own balance sheet. Some infrastructure providers depend on third-party financing to buy chips and build computing capacity. If that financing becomes unavailable or more expensive, contracted capacity could be delayed, repriced, reduced or not delivered, the company said.
Why It Matters
The IPO is widely seen as a test of whether public markets will fund the AI boom. Vital Knowledge, quoted by Investing.com, said that if Anthropic cannot complete the offering on the terms discussed, investors could grow even more nervous about AI capital spending.
That creates a loop. Falling AI stock prices make it harder to raise money, and doubts about large financings can weigh further on AI stocks.
Thursday’s selloff made the loop visible. The Nasdaq Composite fell 5.5% and entered correction territory. The Wall Street Journal reported that the drop erased about $2.5 trillion from companies in the index.
Broader Context: A Crowded Funding Race
Anthropic’s last private round closed in May, when it raised $65 billion at a $965 billion valuation, CNBC reported. That round pushed its valuation above OpenAI’s for the first time.
OpenAI closed a record $122 billion round at an $852 billion valuation on March 31. It has since been seeking fresh capital. The Financial Times reported that OpenAI cut its target to about $20 billion from $30 billion and lowered its target valuation to $1.25 trillion from $1.4 trillion.
The Wall Street Journal reported that OpenAI had secured about $11 billion so far. UAE investors, including the state-backed fund MGX, and Coatue were reported to be leading the round. OpenAI has said it plans its own listing in 2027, according to reports.
Investors Want a Price Signal
Some investors reportedly want to see Anthropic’s public market price before committing more money to OpenAI. Jimmy Chang of the Rockefeller Global Family Office, who holds stakes in both companies, said the market needs to see a successful IPO because these companies need funding.
What Happens Next
The next signal will be whether Anthropic’s roadshow begins the week of November 9. Reuters has reported that timing is uncertain. A start would suggest the company is pressing ahead, while a delay would point to a slower and more cautious approach.
Investors will also watch for any change to the price range or the size of the offering. A lower valuation or smaller raise would not necessarily signal weak demand, but it would be read as a sign that investors are demanding more evidence of returns.
Those decisions have not been announced. Until Anthropic sets formal terms, the figures circulating in the market remain targets and negotiating positions rather than confirmed outcomes.
