Anthropic IPO faces investor doubts over valuation

Summarised from 2 outlets · Updated 6 Nov, 01:21 · Archive

Investors are pushing Anthropic to offer a lower valuation for its planned IPO, citing technology stock declines and the AI company's losses.

Potential investors in Anthropic's highly anticipated IPO are raising doubts about whether the artificial intelligence startup can proceed with its roadshow next week as planned for a November listing. Investors are pushing for a more attractive valuation, with some viewing the recently discussed $US1.5 trillion valuation as being at the high end of expectations.

The discussions reflect the sharpest technology stocks selloff in a year and geopolitical uncertainty clouding the outlook for new offerings. Anthropic declined to comment on investor doubts. The roadshow was initially expected to kick off the week of 9 November, with pricing expected the following week.

Investors recognise the company's need to raise capital given a record of quarterly losses and the large commitments it has made to partners in the AI buildout. They are also awaiting Anthropic's October revenue figure, which the company left blank in its updated S-1 filing, to assess whether the AI lab has managed to boost growth after a slowdown in recent months.

Wall Street and Silicon Valley were questioning whether the company would move forward following a two-day AI market selloff after the US midterm elections. A delay to the offering would likely fuel further concern over the health of the AI ecosystem.

How it is being reported

• AI backlash could threaten Anthropic IPO timingAnthropic may need to offer a bigger discount to secure investor commitments for its proposed IPO.The West Australian · 6 Nov, 00:55
• AI backlash could threaten Anthropic IPO timingAnthropic may need to offer a bigger discount to secure investor commitments for its proposed IPO.Perth Now · 6 Nov, 00:55

In this story: Anthropic · Wall Street · Silicon Valley

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