Abstract:
According to the "Wall Street Journal" report, last week's plunge in technology stocks has made large investors planning to participate in Anthropic's IPO tend to give the AI giant a lower valuation.
Caption: Anthropic CEO Amodei
In the past few days, institutional investors have told Anthropic and its team of advisers that they believe the company's planned IPO later this month should be valued at around $1.5 trillion to $1.6 trillion, well below the nearly $2 trillion valuations that have been circulating in the market in recent months, according to people familiar with the matter.
Investors cited a range of worrying factors, including volatile stock markets and growing concerns about exposure to AI investments. In addition, investors are concerned about the political backlash facing data centers and the uncertainty about when hyperscale cloud service providers such as Amazon and Meta will show AI-related profits.
Anthropic has not yet finalized a valuation target and is still considering how many shares it plans to sell. After its investor day last month, some investors told the company that its valuation should be closer to $1.5 trillion. But that was before tech stocks suffered double-digit losses last week, with companies including Intel and Alphabet tumbling after a series of disappointing earnings reports.
Some investors said they believe Anthropic CFO Krishna Rao will set a conservative valuation and prioritize ensuring that IPO investors can get a wave of "boosts" on the first day of trading. They believe that even if Anthropic goes public at a valuation of about $1.5 trillion, its stock price could push the company's market value to $2 trillion by the end of its first trading day. Elon Musk's SpaceX surged 30% on its first day of listing in June, but at that time widespread investor anxiety about AI had not yet taken hold.
Anthropic plans to launch a road show for investors as early as next week, and the listing is expected to be a week before Thanksgiving. The company will give a target valuation by announcing the number of shares it hopes to sell and a target price range when the roadshow launches.
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