Investors weighing an initial public offering from Anthropic PBC are now discussing a valuation of $1.2 trillion to $1.3 trillion, according to a person familiar with the matter. That is below earlier estimates of $1.4 trillion to $1.5 trillion, and well under a fair valuation as high as $2 trillion investors estimated in early October. The revision follows a punishing post-election selloff in which the Nasdaq 100 index plunged 6.4% on Thursday, wiping out $2.3 trillion in market value, a record for a single day.
The Democratic sweep of Congress has raised the prospect of greater scrutiny over the pace and impact of data center expansion, adding to questions about the Claude chatbot maker's valuation. The Cboe Volatility Index rose to its highest level since April 2025, making any IPO harder for investors to stomach. Stephan Kemper, chief investment officer at BNP Paribas Wealth Management Germany, said valuations might need to fall 10% to 15% below the rumored $1.5 to $2 trillion target range.
Opinions on a workable level vary. Michael Alfaro of Gallo Partners said Anthropic needed a valuation between $1.3 trillion and $1.4 trillion to build a quality book, while David Rainville of Sycomore Asset Management said a $1.2 trillion valuation should attract investors. Max Kettner of HSBC Holdings said around $1 trillion could be more comfortable, reducing the risk of volatility once trading begins.
Anthropic may start marketing with a conservative size and valuation and raise it if demand is strong. Chipmaker Cerebras Systems and design software firm Figma both sold more shares than initially marketed, but both now trade well below their IPO prices. Delaying the offering is another option, though deliberations are ongoing and no final decisions have been made.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing