Investors tell the WSJ Anthropic's IPO valuation may have to fall below $1.5 trillion after the selloff
Three major investors told the Journal the price will likely need to come down, one saying nearer $1 trillion; Anthropic has not committed to a valuation, raise size or date, and its advisers are expected to meet in the next few days.
Why it matters
Anthropic had been aiming to list the week before Thanksgiving and raise up to $100 billion at about $1.5 trillion, which would have been the largest offering on record. The Journal reports that the Nasdaq shedding $2.5 trillion on Thursday has made institutions wary of taking a big new AI position, and that a delay or a smaller raise are both being discussed. Anthropic held $146.6 billion in cash on Sept. 30, so it is not forced to price. Watch the advisers' meeting, and whether other AI listings and funding rounds are repriced.
Key facts
- IPO targeted for the week before Thanksgiving
- Raise of up to $100 billion at about $1.5 trillion had been expected
- Three major investors say the valuation will likely need to come down; one says nearer $1 trillion
- Cash on hand $146.6 billion as of Sept. 30
- Nasdaq companies shed $2.5 trillion on Thursday
- OpenAI has received $11 billion of a $30 billion round target, at a $1.25 trillion valuation