Anthropic's IPO valuation drops to $1.5 trillion as AI bubble index climbs

Anthropic's initial public offering is expected to proceed at a valuation of approximately $1.5 trillion, significantly below the $2 trillion target, amid widespread concerns about a potential bubble in the artificial intelligence sector. The reduced valuation follows a market downturn that has hit major AI stocks, including Nvidia, AMD, and CoreWeave. Anthropic's S1 filing showed strong revenue growth of $17 billion in the third quarter, but also revealed substantial risks, including $23 billion in quarterly losses, heavy reliance on a few key customers, and significant spending on computing infrastructure. The AI Stock Bubble Index has risen to 74, with analysts like Ray Dalio warning of a potential collapse. Recent IPO performance has been poor, with companies like SpaceX and CoreWeave trading well below their initial prices, raising concerns about Anthropic's post-listing prospects.