Anthropic's IPO faces test after AI selloff

Anthropic's highly anticipated initial public offering faces a difficult test after a sharp selloff in artificial intelligence stocks, raising questions about its proposed $1.5 trillion valuation and the timing of the listing. The AI company, preparing for a listing as early as November, was expected to raise around $100 billion. However, potential investors are increasingly questioning whether the proposed valuation reflects the company's financial prospects, particularly given its extensive commitments to computing infrastructure. The market backdrop has also deteriorated, with a selloff in AI-related investments hitting tech stocks and political uncertainty after the US midterm elections raising concerns about future data center construction. The Wall Street Journal reported that at least three major investors believe Anthropic may need to lower its valuation, with one suggesting a figure closer to $1 trillion. The company may also need to accept a smaller fundraising target, potentially seeking around $80 billion instead of the previously expected $100 billion. Michael Burry, the investor known for betting against the US housing market before the 2008 financial crisis, has expressed hesitation about participating in the IPO, highlighting the company's approximately $895 billion in commitments for AI computing power, chips, and infrastructure.