By Anthropic’s highly anticipated initial public offering is facing a difficult test as a sharp selloff in artificial intelligence stocks raises questions about its proposed $1.5 trillion valuation and the timing of the listing.
The AI company, which is preparing to go public as early as November, had been expected to pursue an offering of around $100 billion.
However, prospective investors are increasingly questioning whether the proposed valuation reflects the company’s financial prospects, particularly given its substantial commitments to computing infrastructure.
The market backdrop has also deteriorated.
An unwinding of AI-related investments has hit technology stocks, while political uncertainty following the US midterm elections has raised concerns about the future of data-centre construction.
The Wall Street Journal reported that at least three major investors believe Anthropic may have to lower its valuation, with one suggesting a figure closer to $1 trillion.
The growing resistance presents a challenge for one of the most closely watched IPOs in the technology sector.
Anthropic must balance investor expectations against its substantial funding requirements as it continues expanding its Claude AI models and securing computing capacity.
Anthropic IPO faces growing resistance to $1.5 trillion valuation
The proposed $1.5 trillion valuation has emerged as one of the biggest sticking points in Anthropic’s IPO preparations.
Investors who had previously viewed the company as a must-own name are becoming more cautious as technology stocks come under pressure.
According to The Wall Street Journal, three major investors planning to participate in the offering believe Anthropic will probably need to reduce its valuation.
One investor reportedly suggested that the company could be worth closer to $1 trillion.
The company may also have to settle for a smaller fundraising target.
The Wall Street Journal reported that Anthropic could seek around $80 billion rather than the previously anticipated $100 billion.
The valuation debate comes as investors await further details about the company’s financial performance.
Anthropic’s amended S-1 filing showed that its revenue reached $17 billion in the third quarter.
Its revenue run rate, a measure used to estimate annual revenue based on current performance, exceeded $80 billion at the end of October, according to The Wall Street Journal.
However, investors are also looking beyond revenue growth to examine the costs associated with developing and operating increasingly sophisticated AI models.
Reuters reported that some prospective investors are waiting for Anthropic’s October financial results before pushing for a lower valuation.
The company’s October revenue figure was left blank in its updated S-1 filing, making it another important number for investors to assess.
The roadshow was initially expected to begin during the week of November 9, with pricing anticipated the following week, Reuters previously reported.
AI stock selloff and data-centre backlash complicate IPO plans
The deteriorating market environment has added another layer of uncertainty to Anthropic’s listing.
A sharp selloff in technology stocks has raised questions about whether investors will be willing to support a $1.5 trillion valuation for an AI company at a time when enthusiasm around the sector is weakening.
The Global X Artificial Intelligence & Technology ETF fell 6.2% during Thursday’s session, reflecting the pressure on AI-related investments.
The political environment has also become more complicated.
Democratic victories in the US midterm elections have raised concerns about potential resistance to new data-centre developments.
Newly elected Democratic governors in states including Texas, Georgia and Ohio could create obstacles for construction projects.
Analysts at Jefferies cut their forecast for new data-centre capacity in 2030 by approximately 8% in a research note on Thursday.
This matters considerably for Anthropic because its business strategy depends on securing sufficient computing capacity to train and operate its Claude models.
In its IPO prospectus, the company acknowledged that political or financial developments that restrict data-centre capacity could pose a risk to its operations.
However, Malik Ahmed Khan, senior equity analyst at Morningstar, does not believe the current market weakness will derail the IPO.
“We don’t expect any near-term impact on the IPO,” Khan wrote in a research note on Thursday.
He added that concerns surrounding data-centre development could become an interesting dynamic to watch over the next couple of years.
Khan also argued that developers could respond to local opposition by making greater investments in communities and introducing commitments to protect residents from rising electricity bills.
The continued presence of President Donald Trump in the White House could also make federal legislation restricting AI development more difficult, he added.
Michael Burry questions Anthropic’s computing commitments
While the market selloff has raised concerns about Anthropic’s valuation, the company’s spending commitments have become another major source of investor scrutiny.
Michael Burry, the investor known for his bets against the US housing market before the 2008 financial crisis, has expressed reservations about participating in Anthropic’s IPO.
In a Substack post on Wednesday, Burry highlighted the company’s amended S-1 filing, particularly its commitments to spending on computing infrastructure.
The filing revealed that Anthropic has committed approximately $895.4 billion towards AI computing power, chips and other infrastructure required to develop and operate its models.
Burry argued that these commitments could become difficult to justify even if the company achieves the revenue growth anticipated by optimistic investors.
He pointed out that bullish investors expect Anthropic’s revenue to reach around $100 billion in the coming year, a figure that remains substantially below its long-term infrastructure commitments.
In his assessment, the company’s future spending commitments exceed bullish revenue expectations by roughly 12 times.
“Not only is the company priced for optimism,” Burry wrote, “it is betting its entire existence on that optimism.”
He also raised concerns about take-or-pay agreements with major hyperscalers.
Under these arrangements, Anthropic could be required to pay for computing capacity even when it does not need it.
This could increase operating costs and weaken its competitiveness against other AI model developers.
Burry said investors might not yet fully appreciate the implications of these commitments for Anthropic and the wider AI sector.
“The market is paying attention, but I fear the full realization of what has happened here will only be self-evident in the rear-view,” he wrote.
“I have no plans to pursue shares of Anthropic, and I do not expect to be a shareholder anytime soon.”
His position marks a shift from his earlier assessment of the company.
In April 2026, Burry had described Anthropic as “eating Palantir’s lunch” and suggested that the market was moving towards a plug-and-play system for integrating AI models, which could benefit Claude.
Anthropic needs IPO proceeds to fund its AI ambitions
Despite the growing investor concerns, Anthropic has significant reasons to proceed with its planned listing.
The company has nearly $900 billion in short- and long-term supply commitments for chips and computing capacity.
Meeting these commitments will require substantial financial resources as it continues expanding its AI operations.
According to the company’s prospectus, Anthropic had $146.6 billion in cash and other liquid assets.
However, postponing the IPO would temporarily prevent it from raising additional capital through the public markets.
The potential fundraising target of $80 billion to $100 billion would provide additional financial flexibility as the company competes in the increasingly capital-intensive AI industry.
However, investors are unlikely to support the offering simply because Anthropic needs the money.
Jim Lebenthal, chief market strategist at Cerity Partners, said in a Barron’s report that the company could reconsider its plans if the market environment prevents it from achieving an attractive valuation.
He previously argued that Anthropic could instead raise capital in private markets if the public-market valuation fell too far.
HSBC’s Max Kettner, who recently reduced his equity rating from maximum overweight to neutral, also identified Anthropic’s IPO as a potentially significant event for financial markets.
“The real risk clearing event is probably the Anthropic IPO in two weeks, if it happens,” Kettner said in an interview with Bloomberg News.
He suggested that a valuation closer to $1 trillion could be more acceptable to investors than the previously discussed $1.5 trillion figure.
Kettner also cautioned that the company would need to avoid a sharp decline immediately after listing.
“You come with a reasonably low valuation, such that in the secondary market you actually start rallying. Or at least not dumping 20-30% in the first week — because that obviously would be horrible.”
The comments highlight the challenge facing Anthropic as it prepares for one of the largest potential public offerings in the technology industry.
A lower valuation could improve investor appetite and reduce the risk of a weak market debut.
However, it could also mean raising less capital than initially anticipated.
Ultimately, Anthropic’s IPO will test whether public-market investors are still willing to pay a substantial premium for leading AI companies despite concerns about infrastructure costs, capital commitments and the sustainability of the sector’s growth.
Read our in-depth guides on how to invest in Anthropic and how to buy Anthropic pre-IPO.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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