Anthropic Faces High Valuation Risks Ahead of Expected Late-November IPO
Anthropic, a leading artificial intelligence company and creator of the Claude chatbot, is planning to go public later this month. The company's potential valuation could exceed $2 trillion at launch, surpassing the initial valuation seen by Space Exploration Technologies Corp (SPCX). While Anthropic has demonstrated exceptional growth—reporting a 1,200% increase in revenue to $33.2 billion during the first nine months of the year—it remains heavily unprofitable. The IPO arrives amidst a broader market downturn in the technology sector, exemplified by the State Street Technology Select Sector SDPR ETF's recent 13% decline. With Anthropic reporting a net loss of $104 billion over the same nine-month period, analysts warn that high expectations and significant financial losses may lead to extreme volatility or a valuation correction once initial hype subsides.