Anthropic IPO valuation expected to be below $1.6 trillion
November 5, 2026 · 2 min read
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Anthropic, an artificial intelligence giant, is facing a lower expected valuation for its upcoming initial public offering due to a recent decline in technology stocks. Large institutional investors have reportedly suggested that the valuation for the IPO, scheduled for later this month, should be around $1.5 trillion to $1.6 trillion, significantly less than the nearly $2 trillion figure circulated in recent months.
Concerns from investors include market volatility and increasing worries about excessive exposure to AI investments. Additionally, political backlash against data centers and uncertainty regarding when major cloud service providers like Amazon and Meta will demonstrate AI-related profits have further contributed to investor apprehension.
Anthropic has not finalized its valuation target and is still considering how many shares to offer. Following an investor day last month, some investors indicated that the company's valuation should be closer to $1.5 trillion. However, this was prior to the significant decline in tech stocks last week, which saw companies like Intel and Alphabet experience sharp drops in their share prices after disappointing earnings reports.
Some investors believe that Anthropic's Chief Financial Officer, Krishna Rao, will set a conservative valuation to ensure that IPO investors can see an immediate gain on the first day of trading. They speculate that even with a valuation around $1.5 trillion, the company's market capitalization could rise to $2 trillion by the end of its first trading day. SpaceX, owned by Elon Musk, saw a 30% increase on its initial trading day in June, although investor anxiety about AI was not as pronounced at that time.
Anthropic is expected to begin its investor roadshow next week, with its IPO anticipated to take place the week before Thanksgiving. The company will announce the number of shares it intends to sell and its target price range at the start of the roadshow.