Investors Brace for Lower Anthropic Valuation, Calling $1.5 Trillion a ‘Stretch’

Following a major selloff on Wall Street, investors are lowering their financial expectations for the artificial intelligence company Anthropic. The business had previously aimed for a $2 trillion valuation ahead of its upcoming initial public offering, but stakeholders now doubt that even a $1.5 trillion valuation is attainable. One investor described that $1.5 trillion figure as a "stretch". Anthropic declined to comment on the changing financial outlook.

The shift in investor sentiment follows a sharp market drop after the midterm elections, combined with growing worry about high spending by artificial intelligence companies. On Thursday, the Nasdaq fell more than 5% in its steepest one-day drop in 19 months. That decline reflected fears that new Democratic power in Washington, D.C., and a nationwide pushback against artificial intelligence could slow down the construction of new data centers. Market pessimism regarding artificial intelligence was already growing before the election. In October, the Nasdaq suffered its worst month since March 2025, driven down by losses in chipmakers and cloud computing firms.

Anthropic is preparing to list its shares on the Nasdaq under the stock ticker ANT within a matter of weeks. Last month, reports indicated the company was seeking a valuation as high as $2 trillion, up from a private valuation of $965 billion in May. Given the recent market turmoil, one investor stated that a valuation target between $1 trillion and $1.25 trillion is more realistic, though that range could shift depending on future market conditions. The investors who shared these views asked to remain anonymous because they are not authorized to speak publicly about the matter.

Gil Luria, an analyst at D.A. Davidson, said investors will likely expect the stock offering to be priced at least at the low end of previous expectations. He added that the broader market needs the public offering to go well, and the deal's bankers understand that pricing the offering properly is the best way to set Anthropic up for success. Anthropic is expected to begin its investor roadshow next week.

Summary

Market turbulence and growing scrutiny of artificial intelligence spending are forcing investors to scale back their financial expectations for major technology companies preparing to go public, raising questions about how Anthropic's upcoming initial public offering will be priced.