Anthropic's $1.5 trillion IPO faces Wall Street scrutiny after AI stock sell-off

Anthropic's highly anticipated initial public offering faces mounting pressure as a broad sell-off in AI-related stocks raises questions about its proposed $1.5 trillion valuation and November listing timeline. The AI company, preparing to go public as early as November, initially targeted raising around $100 billion. However, potential investors increasingly question whether the valuation reflects the company's financial prospects, particularly given its substantial computing infrastructure commitments. The Wall Street Journal reports at least three major investors believe Anthropic may need to cut its valuation, with one suggesting closer to $1 trillion. Market conditions have deteriorated with AI-related divestments weighing on tech stocks, while political uncertainty following US midterm elections has raised concerns about data center construction. Anthropic has committed approximately $895 billion for AI computing power and infrastructure, with revenue reaching $17 billion in Q3 and an annualized run-rate exceeding $80 billion.