Anthropic IPO faces valuation cut after $2.5 trillion rout - The Jerusalem Post
By Google News AI ·
Anthropic's planned $1.5 trillion initial public offering is facing mounting pressure from major investors following a sharp selloff in US technology stocks, with some backers now calling for a substantially lower valuation or a possible postponement, The Wall Street Journal reported on Thursday.The artificial intelligence company, which develops the Claude chatbot, has been preparing to enter public markets during the week of November 16, ahead of the US Thanksgiving holiday. Its anticipated offering could raise as much as $100 billion, potentially making it the largest IPO in history. The company made its IPO filing public in late October, although its final offering price and size remain undecided.However, three major investors intending to participate in the offering believe the proposed valuation will have to be reduced, according to the Journal. One investor suggested the company could be valued closer to $1 trillion, representing a decline of approximately one-third from its previously anticipated price.The shift reflects growing concerns across Wall Street about the sustainability of valuations attached to AI companies, particularly after a wave of selling wiped trillions of dollars from US technology stocks.The Nasdaq Composite suffered a severe selloff on Thursday, with companies in the index losing approximately $2.5 trillion in market capitalization as investors moved away from AI-related investments. The decline followed Tuesday's US midterm elections, which strengthened the position of politicians skeptical of the industry's rapid expansion and saw voters approve restrictions that could complicate data center development.Until recently, Anthropic had been viewed as one of the most sought-after companies preparing to enter the stock market. Investors had…
Originally published by Google News AI
