Anthropic's IPO falls short as AI bubble wobbles

Anthropic's IPO target fell short of expectations Tuesday, raising up to $64.4 billion at a valuation of up to $1.4 trillion, roughly $600 billion below investor projections, signaling a wobbling AI industry bubble. The company's annualized revenue hit $81 billion in October, but long-term infrastructure commitments climbed to nearly $901 billion. The reset follows a punishing week of political upheaval, including a Democratic sweep with AI-skeptical lawmakers, Nvidia CEO Jensen Huang's espionage scandal, and a $2.5 trillion Nasdaq selloff. Anthropic remains poised for one of the largest IPOs ever, with $26 billion in new private investment from Google and Nvidia. However, investors previously valued it as high as $2 trillion, and concerns persist about sustaining post-debut performance, as seen with SpaceX's stock decline after its June IPO.