Anthropic IPO valuation: Why investors are lowering expectations after Wall Street sell-off

Anthropic IPO valuation reset

Anthropic's planned initial public offering is meeting a more cautious market. Prospective investors are now weighing a valuation in the region of $1.2 trillion to $1.3 trillion, with some discussions touching as low as $1.1 trillion, according to Bloomberg. That is well below the $2 trillion figure the company had reportedly been exploring earlier. Even $1.5 trillion is drawing resistance, with one investor calling it a stretch, CNBC reported. Some investors now view $1 trillion to $1.25 trillion as more realistic, though nothing is final.

The company is expected to begin its IPO roadshow next week and intends to list on the Nasdaq under the ticker ANT. It would be the first listing by a developer of a frontier AI model. The reassessment follows a steep technology sell-off on Thursday, when the Nasdaq Composite fell more than 5 per cent, its worst drop in 19 months, and the Nasdaq 100 slid 6.4 per cent, erasing $2.3 trillion in market value in one session. The Cboe Volatility Index hit its highest level since April 2025.

Why it matters for businesses

Anthropic's valuation has moved repeatedly in recent months. It was privately valued at $965 billion in May, and investors were considering up to $2 trillion in early October. That narrowed to roughly $1.4 trillion to $1.5 trillion after a briefing on its latest financial performance, and market volatility has pushed estimates lower again. The reset reflects wider anxiety over AI spending and the durability of data centre investment, along with possible scrutiny of data centre expansion after the Democrats' midterm wins.

For Indian firms tracking global AI valuations, the outcome could influence how comparable private holdings, funding rounds and technology contracts are assessed. Rival OpenAI is now targeting a pre-money valuation of $1.25 trillion in its latest round, giving a second reference point. HSBC's Max Kettner told Bloomberg Radio that a valuation near $1 trillion could mak…