BREAKING
Anthropic IPO investors push back on $1.5 trillion valuation as tech stocks slide
Prospective buyers lower expectations to between $1 trillion and $1.3 trillion after a $2.3 trillion tech rout.
Prospective investors in Anthropic's upcoming initial public offering are pushing back against valuation targets as high as $1.5 trillion, pulling target discussions down to between $1 trillion and $1.3 trillion after a sharp sell-off in US technology shares.
Some prospective buyers are considering figures as low as $1.1 trillion, according to Bloomberg, while investors speaking to CNBC said a realistic target now sits between $1 trillion and $1.25 trillion. One investor described a $1.5 trillion valuation as a stretch. Anthropic declined to comment on the discussions.
The revised expectations represent a clear retreat from early October, when Anthropic had been considering a valuation target as high as $2 trillion. That figure moved down to between $1.4 trillion and $1.5 trillion following a company briefing on its latest financial performance in October, before the recent market volatility triggered a further reassessment.
Why it matters
For institutional investors and founders across the broader tech ecosystem, the pricing of Anthropic's debut serves as the first public market test for frontier artificial intelligence developers. As the first builder of large language models to attempt a listing on public markets, Anthropic's final valuation will set a pricing benchmark for late-stage private rounds and future public debuts in the artificial intelligence sector.
A lower public valuation for Anthropic also narrows the valuation gap with its main private rival, OpenAI, which is targeting a pre-money valuation of $1.25 trillion in its latest funding round. Anthropic had previously surpassed OpenAI in private valuation in May, when it raised funds at a $965 billion valuation.
| Company / Stage | Timeline | Target Valuation | Status |
|---|---|---|---|
| Anthropic Private Round | May 2026 | $965 billion | Completed |
| Anthropic Initial IPO Discussions | Early October 2026 | $2.0 trillion | Superseded |
| Anthropic Post-Briefing Target | Mid-October 2026 | $1.4 trillion to $1.5 trillion | Revised |
| Anthropic Current Investor Target | November 2026 | $1.0 trillion to $1.3 trillion | Under discussion |
| OpenAI Latest Round Target | Latest Round | $1.25 trillion | Pre-money target |
Tech stock sell-off forces valuation reassessment
The push for lower expectations follows severe turbulence across US financial markets. The Nasdaq Composite plunged more than 5% on Thursday, registering its steepest single-day drop in 19 months, while the Nasdaq 100 fell 6.4% to wipe out $2.3 trillion in market capitalisation in a single session, according to Bloomberg. The Cboe Volatility Index rose to its highest level since April 2025.
Market pressure on tech shares had already been mounting. The Nasdaq recorded its worst month in October since March 2025, driven by drops in chipmakers and neocloud providers. Market sentiment has been weighed down by growing concerns over the scale of corporate spending on artificial intelligence infrastructure and the long-term returns on data centre investments.
Political developments in the United States have added further uncertainty. Following Democratic victories in the US midterm elections, investors are assessing the likelihood of increased scrutiny around data centre expansion and nationwide pushback regarding infrastructure buildouts.
What happens next for the Nasdaq listing
Anthropic plans to list on the Nasdaq under the ticker symbol ANT, with its IPO roadshow expected to begin next week. Gil Luria, an analyst at D.A. Davidson, told CNBC that "investors will expect the IPO to be priced at least at the low end of previous expectations."
"The market really needs this IPO to go well and the bankers on the deal surely understand that," Luria said. "The best way to set Anthropic up for success is to price the deal well."
Anthropic and its underwriters have several potential paths forward. The company could launch its formal marketing with a conservative valuation and smaller offering size, leaving room to raise the price if initial institutional demand proves strong. Alternatively, the listing could be postponed.
Under US listing rules, companies must keep their public filings accessible for at least 15 calendar days before starting formal marketing, though issuers frequently wait longer to review market conditions or update financial filings. Michael Field, chief equity strategist at Morningstar, told Bloomberg that Anthropic may prefer to accept a lower valuation rather than delay the debut, noting that postponing the IPO could carry longer-term reputational and valuation risks.
Max Kettner, chief multi-asset strategist at HSBC Holdings, told Bloomberg Radio that settling on a valuation around $1 trillion could afford buyers greater comfort and reduce the risk of sharp price volatility once secondary market trading begins.