Anthropic Valuation Talks Slip to $1.5 Trillion From $2 Trillion

SILICON VALLEY — Investors are looking to cut Anthropic's valuation to $1.5 trillion from $2 trillion as the company's revenue growth slows, according to a report. Concerns are mounting that a disappointing Anthropic initial public offering could weigh on rival OpenAI's listing next year.

Reuters reported on the 15th, citing sources, that investors who have reviewed Anthropic's financial information are weighing a lower valuation for the company.

Investors who attended a pre-IPO briefing in San Francisco the previous day discussed valuing Anthropic at $1.5 trillion, the report said. That is far below the $2 trillion valuation previously expected.

At the briefing, Anthropic reported third-quarter revenue of $16.8 billion. The company posted $4.7 billion in the first quarter and $11.6 billion in the second quarter this year, and is said to have remained profitable on an adjusted operating basis in the third quarter after turning profitable in the second. That marks a shift from last year, when the company booked an $8 billion operating loss on annual revenue of $4.6 billion. Still, quarter-on-quarter growth rates have declined this year. Reuters said investors focused on that slowdown in quarterly revenue growth.

A weak Anthropic IPO could hurt the listing of rival OpenAI, expected early next year. "A cool reception for Anthropic's IPO could weigh on the broader AI market, where OpenAI is expected to list next year," Reuters said.