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Anthropic Investors Consider $1.5 Trillion IPO Valuation as Growth Slows

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Investors reviewing financial disclosures for Anthropic (ANTHROPIC) ahead of its planned November initial public offering are weighing a $1.5 trillion valuation. The revised price tag represents a $500 billion, or 25%, drop from earlier expectations of $2 trillion, following discussions at an October 14 investor event in San Francisco.

The lower valuation target comes as revenue expansion moderates alongside rising expenses to finance artificial intelligence development. Anthropic (ANTHROPIC) reported third-quarter revenue of $16.8 billion, up 45% from $11.6 billion in the second quarter and $4.7 billion in the first quarter. While sales continued to grow, the pace slowed after revenue more than doubled between the first and second quarters. Offsetting some cost concerns, the company disclosed that it reached profitability on an adjusted basis during the third quarter.

Investors are carefully assessing financing models across the artificial intelligence sector. A weaker market reception for the upcoming debut could influence investor sentiment toward competitors, including OpenAI (OPENAI), which is expected to pursue a public listing in 2027.

Key points

  • Anthropic investors are discussing a $1.5 trillion IPO valuation, which is $500 billion lower than prior expectations.
  • Third-quarter revenue reached $16.8 billion, up 45% sequentially from $11.6 billion in Q2 and $4.7 billion in Q1.
  • Revenue growth moderated after more than doubling between the first and second quarters.
  • The company reported achieving adjusted profitability during the third quarter despite high AI costs.
  • The listing outcome could impact market sentiment for rival OpenAI, which plans a public debut in 2027.

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Questions and answers

What is Anthropic's expected IPO valuation?

Investors are discussing a $1.5 trillion valuation for Anthropic's planned November IPO, which is $500 billion below the previously expected $2 trillion figure.

How much revenue did Anthropic generate in Q3?

Anthropic generated $16.8 billion in Q3 revenue, up 45% from $11.6 billion in Q2 and $4.7 billion in Q1, achieving adjusted profitability during the quarter.

When is Anthropic planning to go public?

Anthropic is planning its initial public offering for November, while rival OpenAI is expected to pursue a public listing in 2027.