Major institutional investors in Anthropic's initial public offering are pushing for a valuation of about $1.5 trillion to $1.6 trillion, according to a Wall Street Journal report on Monday. That range sits below the roughly $2 trillion figure that had circulated in the market in recent months, and the pushback landed the same day Anthropic filed an amended S-1 registration statement.
Investors pointed to choppy tech markets, overexposure to AI bets, rising data center and computing costs, uncertainty about when hyperscalers such as Amazon and Meta will show AI-related profits, and political backlash against data center expansion. AI and data center infrastructure stocks have been weak for about a month, and Amazon, Intel and Alphabet reported disappointing results the prior week.
Anthropic has not finalized its target valuation or share count. Even the low end of the investors' range would clear the company's most recent private-market valuation of $1.41 trillion, as tracked by Nasdaq Private Market.
Key facts
- 01Major institutional investors are pushing Anthropic toward a $1.5 trillion to $1.6 trillion IPO valuation.
- 02That is below the roughly $2 trillion discussed in recent months and above the $1.41 trillion last private-market mark.
- 03Anthropic's roadshow reportedly starts next week, with a listing targeted for the week before Thanksgiving.
- 04The amended S-1 shows about $17 billion in Q3 revenue, up roughly 1,127% year over year.
- 05Anthropic reported $895.4 billion in spending commitments as of September 30, mostly for compute.
The investor roadshow is set to begin next week, with a listing targeted for the week before Thanksgiving. Anthropic will reportedly use a traditional price range rather than the single-price method SpaceX used. One trader on Stocktwits speculated trading could begin as early as November 12, pointing to the rule that financials in an effective S-1 cannot be more than 134 days old.
Some investors expect Anthropic CFO Krishna Rao to set the IPO price conservatively to leave room for the stock to rise on its first day. Some forecasts say that at a $1.5 trillion valuation, the first-day closing price could reach $2 trillion.
The amended filing shows Anthropic's third-quarter revenue at about $17 billion, up roughly 1,127% from a year earlier. Sequential growth slowed to 47% in the third quarter, down from 144% in the second quarter and 132% in the first. Anthropic posted a $567 million operating loss for the quarter, versus a $974 million operating profit in the second quarter, and a net loss of $23.29 billion.
Anthropic also disclosed $895.4 billion in total spending commitments as of September 30, mostly for computing and infrastructure and running through 2045. About $447.5 billion of that is due by the end of 2030, including about $69.8 billion within the next 12 months. The company reported $146.6 billion in cash and other liquid assets.
The commitments reflect a compute buildout that now spans Google, Amazon, Microsoft and SpaceX. Anthropic has secured more than 3.5 gigawatts of computing power this year and plans to double that next year.
Amazon, Alphabet and Nvidia are among Anthropic's major investors, and a significant share of Anthropic's revenue flows through cloud partners Amazon and Google.
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