Anthropic to Start IPO Roadshow Next Week, Targeting Mid-November Listing as Valuation Expectations Fall to About $1 Trillion

Artificial intelligence company Anthropic plans to launch the roadshow for its initial public offering next week, aiming to list on Nasdaq in the week of November 16, ahead of Thanksgiving on November 26. According to multiple reports, investors' valuation expectations for the company have fallen sharply from about $2 trillion in early October to a range of $1 trillion to $1.3 trillion.

Valuation expectations fall sharply; figures differ by source

Bloomberg reported on November 6 that prospective buyers were discussing a valuation of $1.2 trillion to $1.3 trillion, with some as low as $1.1 trillion; The Wall Street Journal said some investors had proposed $1 trillion; the Financial Times said the company aims to raise $80 billion to $100 billion at a valuation of $1.25 trillion to $1.75 trillion. The figures differ, and no final pricing has been set: the amended S-1 prospectus filed on November 2 still leaves the price range blank. The company will list on the Nasdaq Global Select Market under the ticker ANT, with Goldman Sachs and Morgan Stanley leading 22 underwriters.

Q3 revenue of $17 billion; growth halved, back to a loss

According to the amended filing of November 2, Anthropic's third-quarter revenue was $17 billion, with year-on-year growth halving to 47% from about 94% in the prior quarter, and the company returned to a $567 million operating loss. Its long-term commitments for computing capacity and infrastructure stand at about $895 billion; its last private valuation was $965 billion in the Series H round in May. Reuters noted that some investors question whether the roadshow can start on time, leaving a November listing uncertain.

Tech sell-off: Nasdaq down nearly 12% from its peak

The listing comes amid a sell-off in technology stocks: the Nasdaq fell 5.5% on Thursday, November 5, and is down nearly 12% from its October 6 peak, as investors worry whether AI companies' enormous spending on computing power will translate into returns. Anthropic is one of the most closely watched listings of the AI boom, and its pricing will be read as a barometer of the market's appetite for AI valuations.

(Sources: CNBC; The Information; Bloomberg; The Wall Street Journal; Financial Times; Reuters; US Securities and Exchange Commission EDGAR filings.)