Anthropic, the developer of the Claude chatbot, has set its IPO valuation target at up to $1.4tn, down from an expected $2tn, following investor concerns about the long-term prospects of the AI sector. The company aims to raise $64.4bn by selling 825m shares at up to $78 each, with an additional $26bn from a private placement involving Alphabet and Nvidia. A greenshoe option could push the total raised to about $100bn if demand is strong.
The revised valuation comes after US midterm election results, which saw wins for datacentre opponents, intensified doubts about the financial sustainability of large-scale AI investments. Analysts say the election gave investors an opportunity to reassess high valuations amid uncertainty over returns on AI infrastructure.
Anthropic’s annual revenue is now reported at $81bn, but its commitments to computing power and datacentre leases exceed $70bn in the next year alone, rising to $450bn by 2030. The company’s future depends on matching these heavy outlays with rapid revenue growth, a point stressed by CEO Dario Amodei. Investment banks forecast annual revenues could reach $600bn by 2030, but the risks remain significant.
Senior executives in regulated sectors should monitor how AI firms balance capital commitments with revenue, as this will affect both supplier stability and broader market sentiment.
