Tech Stock Selloff Drags Down Anthropic's "Largest IPO Ever" Valuation as Expectations Fall From $2 Trillion to $1.5 Trillion Range

Nov. 3 — According to IT Home citing The Wall Street Journal, last week's tech stock plunge is changing how institutional investors planning to take part in Anthropic's IPO value the company. Over the past few days, these investors have told Anthropic and its advisers that the valuation at the IPO later this month should be between $1.5 trillion and $1.6 trillion, far below the nearly $2 trillion level previously discussed in the market.

The report said the Nasdaq index fell about 10% from its high last week, approaching technical correction territory; Intel plunged 29% in a single day, and Alphabet lost about $500 billion in market value after its earnings. Investors are also worried about excessive AI exposure, political headwinds facing data centers, and when hyperscalers will be able to turn AI spending into profits. Anthropic has not yet finalized its valuation target or the size of the share sale. Some investors expect CFO Krishna Rao to adopt a conservative pricing strategy, prioritizing a solid first-day gain for IPO buyers. Anthropic plans to launch its roadshow as early as next week and aims to list in the week before Thanksgiving.