KEY POINTS

• Anthropic is preparing to set a valuation range this week ahead of a planned stock market debut next week.
• The company could begin trading on Thursday or Friday, according to The Wall Street Journal.
• Some institutional investors are pushing for a valuation below the $1.5 trillion target discussed last week.
• OpenAI was reportedly valued at $1.25 trillion after raising $11 billion in fresh capital, below its initial $20 billion fundraising target.

MAIN STORY

Artificial intelligence company Anthropic is moving ahead with plans for an initial public offering (IPO), despite recent volatility in technology stocks and growing scrutiny of valuations across the AI industry.

The Wall Street Journal reported that Anthropic plans to set a valuation range this week, with trading expected to begin on Thursday or Friday of next week.

The proposed listing comes shortly after a major sell-off on Nasdaq, raising questions about whether investors remain willing to pay the high valuations attached to companies driving the artificial intelligence boom.

Investor expectations for Anthropic’s valuation have also shifted. Some institutional investors are reportedly pushing for a figure below the $1.5 trillion target discussed as recently as last week. That estimate was already lower than the $2 trillion valuation discussed a few months earlier.

The company’s listing is expected to provide an indication of how public market investors currently value major AI businesses, particularly as concerns about the sustainability of the sector’s rapid growth continue.

Anthropic’s main competitor, OpenAI, was reportedly valued at $1.25 trillion last week after raising $11 billion in fresh capital. The fundraising fell short of the $20 billion the ChatGPT developer had initially sought.

THE ISSUES

An IPO allows a privately held company to sell shares to public investors for the first time. The valuation attached to the listing matters because it determines the price investors are being asked to pay for ownership of the business.

For AI companies, these valuations are closely tied to expectations about future growth. Investors are betting that demand for AI products and services will generate substantial revenue over time. However, the cost of developing AI models, operating computing infrastructure and competing for customers also raises questions about how quickly these businesses can turn growth into sustainable profits.

The gap between Anthropic’s earlier $2 trillion valuation discussions and the lower $1.5 trillion target suggests that some investors are reassessing how much they are willing to pay. The reported pressure for an even lower valuation indicates that institutional investors may be seeking a larger margin of safety before committing capital.

OpenAI’s recent fundraising also provides a point of comparison. Its reported $11 billion capital raise, below the initial $20 billion target, highlights the importance of distinguishing between a company’s estimated valuation and the amount investors are actually prepared to provide.

Anthropic’s eventual IPO pricing will therefore be closely watched as a measure of investor appetite for AI companies. A high valuation would indicate that investors remain willing to pay a premium for expected future growth, while a lower pricing range could reflect greater caution about the sector’s prospects.

WHAT’S NEXT

Anthropic is expected to announce its valuation range this week, followed by a possible stock market debut on Thursday or Friday of next week.

Investors will be watching the final pricing and market response to assess whether demand for AI stocks can withstand recent market volatility and growing scrutiny of company valuations.

BOTTOM LINE

Anthropic’s planned IPO will put the market’s appetite for high-value AI companies to the test. Its final valuation could offer an important indication of whether investors still support the sector’s ambitious growth expectations or are becoming more cautious about the prices attached to them.