Anthropic IPO valuation drops to $1.5 trillion as AI stocks slide

Anthropic's initial public offering is expected to be priced at approximately $1.5 trillion, a significant reduction from the originally targeted $2 trillion valuation, amid growing investor nervousness about the artificial intelligence sector. The Wall Street Journal reports that investors doubt the company can achieve its record valuation goal. This comes as AI stocks like Nvidia, AMD, CoreWeave, and IREN have entered corrections, and the Nasdaq 100 recently fell into a correction following the Democratic victory in the midterm elections. Anthropic's S-1 filing shows accelerating revenue, reaching $17 billion in the third quarter, but also reveals record quarterly losses of $23 billion, largely from a non-cash charge. The company's heavy reliance on a few major customers and significant spending on computing capacity from providers like CoreWeave and SpaceX are cited as key risks.