Investors Press Anthropic to Lower Its IPO Valuation

Anthropic is facing pressure to temper its IPO ambitions as investors weigh its rapid growth against rising costs and a weakening appetite for AI stocks. The company has not determined an IPO valuation or chosen a share count for sale, but it is expected to begin pitching the offering as soon as next week, with its market debut still planned for the week before Thanksgiving.

Financial disclosures show revenue reached $17 billion in the three months ending September 30, up from $11.6 billion in the previous quarter. But Anthropic also recorded a net loss of more than $20 billion in the third quarter and disclosed about $895.4 billion in obligations under purchase deals and lease contracts. The company said expenses for computing and infrastructure had risen as its capacity expanded.

Investors are concerned that enormous AI infrastructure spending may take time to translate into profits. Recent drops in major technology stocks have added to those worries. Anthropic’s third-quarter figures also showed computing and infrastructure expenses climbing about 77% to $9.9 billion, with roughly $5 billion spent on short-term capacity. The company said those costs contributed to its adjusted operating margin falling to 15% from 19%.

A valuation of $1.5 trillion to $2 trillion would equal roughly 43 to 57 times Anthropic’s revenue over the past year, based on $35.3 billion in sales. Historical IPO data cited by analysts suggests listings at similarly high price-to-sales levels have, on average, underperformed the broader market. A lower IPO price could give new shareholders more room for gains on the first day of trading. Anthropic is expected to use a traditional IPO price range rather than set one fixed price for its roadshow.