Anthropic's IPO faces AI selloff test as investors question $1.5 trillion valuation

Anthropic's highly anticipated IPO faces significant headwinds as a selloff in AI stocks and investor skepticism challenge its proposed $1.5 trillion valuation, potentially forcing the company to lower its fundraising target. The AI firm, preparing for a November listing, may reduce its offering from $100 billion to $80 billion, with at least three major investors suggesting a valuation closer to $1 trillion. Concerns center on Anthropic's $895.4 billion in computing commitments, which investor Michael Burry argues exceed optimistic revenue expectations by roughly 12 times. Market conditions have deteriorated, with the Global X AI & Technology ETF falling 6.2% and political uncertainty following US midterm elections threatening data center development. However, some analysts expect the IPO to proceed, noting Anthropic holds $146.6 billion in cash and needs public capital to fund its infrastructure obligations.