A $1.5 trillion valuation target may have to be abandoned by Anthropic for its public market debut, according to a report by The Wall Street Journal, following a sharp technology sell-off that spooked key investors. The artificial intelligence company has aimed to hold its initial public offering the week of Nov. 16, seeking to raise up to $100 billion in what would be the largest listing on record. That target was planned to surpass the benchmark set by SpaceX's IPO in June, which raised $86 billion.
Previous estimates placed Anthropic's valuation between $1.5 trillion and $2 trillion. However, mounting nervousness surrounding the capital poured into foundational AI models has collided with broader market realities. The critical question for capital allocators is whether foundational model developers can maintain multi-trillion-dollar valuations when broader equity markets pull liquidity out of AI assets.
The Wall Street Journal reported that three major investors planning to participate in the offering stated the valuation would likely need to be lowered.
One of those investors noted that the final valuation could end up closer to $1 trillion as public market pricing recalibrates.
Market Repricing and Infrastructure Exposure
What triggered this sudden recalibration across the primary market?
Companies in the Nasdaq composite lost $2.5 trillion in market value on Thursday as investors pulled back from AI bets. This single-day contraction demonstrated how quickly liquidity can evaporate across high-multiple technology assets, directly influencing investor appetites for mega-cap listings.
Beyond public sentiment, Anthropic maintains close business ties to Google, Amazon, and Nvidia, giving its flotation plans broad implications for public markets and the wider economy. When infrastructure backers and AI developers share deep economic links, any repricing on the public exchange directly impacts the entire investment ecosystem that funds compute and foundational model development.
Listing Options and Strategic Delays
Market turbulence is forcing foundational AI developers to reconsider their timing and capital targets. Rival OpenAI has already delayed its plans to trade on Wall Street until next year, choosing to wait out market volatility rather than test current valuations. In Anthropic's case, investors are also considering postponing the timeline for the offering, while scaling back the amount raised is viewed as another possible scenario, the Journal reported. AFP reported that Anthropic did not immediately respond to a request for comment regarding its listing plans.
Major institutional backers are actively reassessing the scale of the offering and raising the possibility of a delayed debut.
Scaling down the capital target or extending the timeline underscores the shifting economics for foundation model providers seeking public liquidity.
The willingness of major investors to price Anthropic closer to $1 trillion rather than $1.5 trillion marks the end of unconstrained multiples for generative AI developers.
What it signals
Can foundation model businesses sustain trillion-dollar premiums once cheap liquidity leaves the room? Wall Street answered bluntly: even though by mid-August quarterly revenue reached $11.6 billion alongside an operating profit, public markets instantly slashed those ambitions. Plans for a historic 1.5-trillion-dollar valuation quickly faded at the first real signs of market discipline.
Our stories: Anthropic Hits $11.6B Q2 Revenue to Beat OpenAI (August 19).