Anthropic Seeks $1.5 Trillion Valuation for IPO

Anthropic, the maker of the Claude AI assistant, is asking investors to value the company at $1.5 trillion ahead of its IPO. That is down from the $2 trillion figure floated earlier in September. Some investors think $1 trillion would be a more fitting valuation, according to Reuters and the WSJ. The company's IPO roadshow (presentations to potential investors before the IPO launches next week) may be delayed. Anthropic keeps losing money. It is also spending aggressively on the compute needed to run its AI models. The updated S-1 filing (a required document for listing on a US exchange) leaves out October revenue figures.

This is not about the quality of the model. And it does not matter how investors value the company. But the missing October revenue numbers are a red flag. Anthropic is willing to spend more on infrastructure than it is willing to show in revenue, all while chasing a $1.5 trillion valuation. Developers building products on top of its models are left guessing how much longer they can keep doing so on today's generous terms.