Investors Consider $1.5 Trillion Valuation for Anthropic IPO, Down From $2 Trillion

Some current and prospective investors are considering a valuation of approximately $1.5 trillion for Anthropic's planned initial public offering, down from earlier expectations of around $2 trillion, according to a Reuters report cited by Michael B. Kelley of Yahoo Finance.

Anthropic, the company behind Claude AI, faces investor scrutiny over its growth rate and potential valuation ahead of a planned initial public offering. [Photo: VulcanSphere]

The discussions reportedly took place during an investor event at Anthropic's San Francisco headquarters as the company prepares for a potential public listing.

The lower figure reflects investor concerns about the pace of revenue growth and the substantial costs associated with developing and operating advanced artificial intelligence systems, Reuters reported, citing people familiar with the discussions.

Anthropic, the developer of the Claude AI models, told prospective investors that its third-quarter revenue rose 45% from the previous quarter to $16.8 billion.

The company also reported that it remained profitable on an adjusted basis.

The reported revenue increase followed a substantial rise in the second quarter, when revenue reached $11.6 billion, compared with $4.7 billion in the first quarter, according to previous Reuters reporting.

Although Anthropic's reported financial performance points to strong demand for its AI products, some investors reportedly expressed concern that sequential growth had slowed from the earlier period.

The discussions highlight the challenge facing AI companies seeking public-market valuations based on expectations of continued rapid expansion.

Investors must weigh revenue growth against spending on computing infrastructure, model development and competition.

Yahoo Finance columnist Jake Conley questioned whether the industry's exceptionally high valuations can be justified by underlying financial performance, emphasizing the importance of comparing ambitious projections with actual results.

The $1.5 trillion figure is not an established market valuation. Anthropic remains privately held, and the discussions reflect investor expectations and negotiations ahead of a potential offering.

The eventual valuation would depend on market conditions, financial disclosures, investor demand and the terms of the IPO.