The $1.5 trillion dream crashes? Investors cool their enthusiasm for Anthropic

Anthropic's mega-IPO, aimed at raising up to $100 billion at a valuation of $1.5 trillion, is facing difficulties amid a wave of declines on Wall Street. Major investors estimate that the valuation will need to drop, with one predicting it may approach only $1 trillion. The company aims to go public before Thanksgiving.

The mega-IPO of the artificial intelligence company Anthropic, aimed at raising up to $100 billion at a valuation of approximately $1.5 trillion, is facing difficulties amid a wave of declines on Wall Street. Three major investors planning to participate in the IPO noted that the valuation will likely need to drop, and one estimated it may approach only $1 trillion. The company aims to conduct the IPO in the week before Thanksgiving. The company's estimated annual revenue run rate crossed the $80 billion mark at the end of October. Another investor estimated that the company may raise a lower amount of about $80 billion, and expressed hope that its cash reserves would exceed $200 billion after the IPO, following cash holdings of $146.6 billion at the end of September. The Nasdaq index lost $2.5 trillion in value on Thursday, two days after the midterm elections brought a bloc of AI skeptics to power. Competitor OpenAI has so far raised $11 billion out of a $30 billion target in its latest funding round, at a reduced valuation of $1.25 trillion.