Anthropic's IPO faces Wall Street scrutiny after AI stock selloff

Anthropic's planned initial public offering faces significant pressure as a sharp selloff in artificial intelligence stocks raises questions about its proposed $1.5 trillion valuation and the timing of the listing, which could occur as early as November. The Wall Street Journal reports at least three major investors believe Anthropic may need to lower its valuation, with one suggesting closer to $1 trillion, while the company may reduce its fundraising target from $100 billion to $80 billion. The company's third-quarter revenue was $17 billion, with a run rate exceeding $80 billion, but investors are scrutinizing its approximately $895 billion in compute infrastructure commitments. Investor Michael Burry has declined to participate, citing take-or-pay agreements that could force payment for unused computing capacity. The Global X Artificial Intelligence & Technology ETF fell 6.2% amid broader AI weakness, and political uncertainty following US midterm elections has raised concerns about data center development obstacles.