Anthropic’s expected initial public offering (IPO) valuation has fallen to between $1.2 trillion and $1.3 trillion as investors reassess the artificial intelligence (AI) market following a sharp sell-off in technology stocks.
The revised valuation expectations, reported by Bloomberg News on Friday, represent a decline from the $1.4 trillion to $1.5 trillion range previously discussed by prospective investors with bankers.
The discussions, however, remain ongoing, with no final decisions made, according to a person familiar with the matter. An Anthropic spokesperson declined to comment.
The latest reassessment follows Thursday’s market rout, which saw the Nasdaq 100 plunge 6.4%, wiping out approximately $2.3 trillion in market value in its largest single-day decline on record.
The sell-off has raised concerns about the outlook for major AI companies seeking to access public markets, with Anthropic potentially becoming the first frontier AI model developer to undertake a major public offering.
The company’s valuation expectations have declined considerably from early October, when investors discussed figures as high as $2 trillion.
Those expectations subsequently fell to between $1.4 trillion and $1.5 trillion following an investor briefing on Anthropic’s financial performance. Thursday’s market turmoil has now prompted another downward adjustment.
The Wall Street Journal reported on Thursday that major investors were increasingly sceptical about Anthropic achieving its anticipated $1.5 trillion valuation.
Three prospective investors told the publication that the offering would probably need to be priced lower, with one suggesting a valuation closer to $1 trillion. The report also raised the possibility of a smaller fundraising target or a delay in the IPO.
Bloomberg’s latest report, however, suggests that discussions around a $1.2 trillion to $1.3 trillion valuation could indicate that investors and bankers are still working towards an offering rather than abandoning the proposed timetable.
The broader market environment remains challenging, with investors questioning the scale of AI infrastructure spending, the returns on massive data-centre investments and potential political and regulatory opposition to new facilities following the Democrats’ midterm election gains.
The Cboe Volatility Index also climbed to its highest level since April 2025, adding to uncertainty for companies seeking to raise capital through public offerings.
Despite the deteriorating market conditions, the revised valuation could make Anthropic’s proposed IPO more attractive to institutional investors by bringing expectations closer to current market conditions.
A successful offering at the lower valuation would also provide an important indication of whether investor appetite for leading AI companies remains strong despite the broader correction in technology stocks.
The final valuation and timing of Anthropic’s IPO remain uncertain, but the ongoing discussions suggest that a repricing, rather than an outright postponement, remains a possibility.
