Anthropic IPO Valuation Cuts Reflect AI Market Volatility Amid Record Tech Selloff

The proposed Anthropic IPO, once eyed as potentially the largest ever with targets up to $2 trillion, has seen repeated downward revisions in investor discussions, now hovering as low as $1.1-$1.3 trillion following a sharp Nasdaq plunge on November 6, 2026. Bloomberg reported that after an October company briefing, buyer estimates shifted from an early-October high of $2 trillion to $1.4-1.5 trillion, with further cuts discussed post-rout that erased $2.3 trillion in market value in a single day.

This aligns with Reuters and WSJ accounts of major investors pushing for lower pricing or a delay beyond November, citing burned institutions reluctant to take fresh AI risks. The company's annualized recurring revenue reportedly exceeded $80 billion by late October (per ZeroHedge synthesis of WSJ data), with some filings showing strong growth like $16.8 billion in Q3, yet tempered by slowdown signals and massive future compute commitments.

Valuation experts like Aswath Damodaran peg fair value around $1.475 trillion in base case, underscoring the gap between hype and fundamentals. Comparisons to SpaceX's post-IPO dynamics highlight risks of secondary volatility. The episode illustrates how sentiment swings in volatile sectors can force rapid repricing, even for high-growth AI leaders, potentially shrinking the raise from $100 billion plans.

Broader context ties to post-midterm market fears over AI spending sustainability, with prediction markets lowering November odds from 90%+ to ~60%.