Some investors are tempering their expectations for Anthropic's highly anticipated initial public offering after a punishing week for technology stocks, with stakeholders telling CNBC that even a $1.5 trillion valuation may now be difficult for the artificial intelligence company to reach.
Up until recently, Anthropic had been looking toward a valuation of as much as $2 trillion for its market debut, and it was reportedly seeking that figure just last month. Sentiment has since shifted. One investor described the $1.5 trillion mark as a "stretch." With the latest market turmoil, one investor said a range of $1 trillion to $1.25 trillion is a more likely valuation target, though that could change with market conditions. The investors asked not to be named because they are not authorized to speak about the matter.
Anthropic declined to comment.
The change in sentiment comes as worries intensify over the outsized spending of artificial intelligence companies, alongside a sharp downturn in the market following the midterm elections. The Nasdaq plunged more than 5% on Thursday, its steepest drop in 19 months. The slide reflects fears that Democrats' newfound power in Washington, D.C., and what investors see as a nationwide rebuke of AI will lead to a slowdown in the buildout of data centers.
Bearishness on the AI trade was rising even before the election. The Nasdaq suffered its worst month in October since March 2025, led by declines in chipmakers and neoclouds, setting the stage for the current reassessment of companies tied to artificial intelligence.
Anthropic is set to list on the Nasdaq under the ticker ANT and is gearing up for an expected debut in a matter of weeks. The company is expected to kick off its roadshow next week. As of May, Anthropic was privately valued at $965 billion.
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."
How the offering is ultimately priced remains an open question, with investors signaling that market conditions in the coming weeks will shape where Anthropic's valuation finally lands.
