Why Anthropic slashed its IPO valuation

Anthropic's upcoming initial public offering, which aims for a fully diluted valuation between $1.3 trillion and $1.4 trillion. The artificial intelligence laboratory plans to offer 825 million shares priced at $70 to $78 each, with trading slated to begin under the ticker ANT. Major technology companies and suppliers are committing $26 billion in a private placement to support the offering, while approximately 20% of the shares are intentionally reserved for individual retail investors. Although the enterprise has experienced rapid revenue growth reaching $17 billion in the third quarter, it continues to manage operating losses and massive infrastructure commitments. Observers note that this valuation represents a slight cooling from earlier market hype, reflecting broader economic uncertainties and shifting investor sentiment toward the artificial intelligence sector.