Anthropic faces investor pushback on $1.5 trillion IPO valuation after AI stock crash

Anthropic's planned initial public offering (IPO) at a $1.5 trillion valuation is facing growing institutional resistance following a sharp market crash in artificial intelligence stocks, according to The Wall Street Journal. The company aims to raise up to $100 billion before Thanksgiving. Major investors backing the IPO are increasingly calling for a lower valuation, with one suggesting a price closer to $1 trillion. The pushback follows a Nasdaq crash that erased $2.5 trillion in market value, triggered by midterm election results that brought AI-skeptical lawmakers to power and introduced local moratoriums threatening data center expansion. Anthropic holds a $146.6 billion cash reserve, giving it flexibility to adjust its price range or delay the IPO. Executives plan to meet soon to evaluate options, while the offering's reception will serve as a key indicator for market-wide liquidity and software valuations.