Reuters reports some investors now discuss a $1.5 trillion valuation for Anthropic's IPO, down from about $2 trillion, as growth slows
ANTHROPIC’S IPO VALUATION EXPECTATIONS DROP FROM $2 TRILLION TO $1.5 TRILLION Some investors are considering a $1.5 trillion valuation for Anthropic’s upcoming IPO, down 25% from earlier expectations of $2 trillion. Anthropic reported $16.8 billion in Q3 revenue, up 45% quarter-over-quarter, but growth slowed sharply after revenue more than doubled in Q2. The company also reported adjusted profitability for the quarter. The key concern: Slowing revenue growth and rising AI infrastructure costs could weigh on one of the most anticipated IPOs. Source: Reuters Exclusive
Context
Anthropic's IPO would be one of the largest ever, and a lower valuation would signal that investors are getting more cautious about AI growth and costs.
This is secondhand: Walter Bloomberg is relaying a Reuters exclusive based on people familiar with the discussions, and the figure is under discussion rather than agreed. The October 14 deck covered Anthropic telling investors its third quarter revenue rose 45% to $16.8 billion.
Deep dive
On October 15, Walter Bloomberg posted that some investors are considering a $1.5 trillion valuation for Anthropic's upcoming IPO, down 25% from earlier expectations of $2 trillion, citing a Reuters exclusive. He wrote that Anthropic reported $16.8 billion in third quarter revenue, up 45% from the prior quarter, but that growth slowed sharply after revenue more than doubled in the second quarter, and that the company reported adjusted profitability. He gave slowing growth and rising AI infrastructure costs as the key concern.
Reports summarizing the Reuters story say the discussions involved investors who attended Anthropic's investor day on Wednesday, that the share sale is planned for November, and that the final price will depend on demand and market conditions.
Earlier the same day, Walter Bloomberg relayed a note from D.A. Davidson analysts Gil Luria and Turner Dischinger arguing that Anthropic's slowing revenue growth should not be read as a broader slowdown in AI demand. They pointed to growing competition from OpenAI and open weight models as businesses spread their AI spending, and said overall AI investment remains on a strong upward path.
Anthropic has not commented publicly on the valuation talks.
What to expect next
Watch for Anthropic's formal IPO filing and the price range it sets, which will show where valuation talks actually landed.
Also watch fourth quarter revenue signals, enterprise cost cutting such as Accenture's Claude cap reported today, and whether the debate over slowing growth affects valuations of OpenAI and other AI companies. Comments from Anthropic executives during the roadshow would be the first official word on these concerns.