Anthropic's upcoming IPO is facing mounting pressure from investors who doubt the company can secure its $1.5 trillion valuation. Three major investors suggest the price may need to drop closer to $1 trillion, with prospective buyers now discussing a range between $1.2 trillion and $1.3 trillion. The company reported $17.0 billion in third-quarter revenue and a $567 million operating loss, while holding $146.6 billion in cash. A missing October revenue figure is adding to the uncertainty, and potential investors are questioning whether the roadshow can proceed on schedule for a November listing.
The IPO challenges come amid a broader AI stock selloff. Following Democrats winning the US midterm elections, major companies including Apple, Tesla, and Nvidia lost roughly one trillion dollars in a single trading session. The Cboe Volatility Index reached its highest level since April 2025. Anthropic had planned to raise up to $100 billion in what would be the largest IPO on record, but the market downturn has forced a reassessment of the deal's timing and terms.
Hyperscalers are spending heavily on AI infrastructure with mixed financial results. Alphabet reported US$51.4 billion in capital investment in one quarter, while Amazon also commits billions to building computing capacity. Microsoft stands out as the only major hyperscaler with positive free cash flow at US$18.6 billion. Anand Rathi estimates hyperscaler capital expenditure will reach US$730 billion in 2026, growing over 80 percent year on year, yet converting that spending into profit remains difficult across the industry.
On the ground in Asia-Pacific, the AI spending boom has not translated into clear returns. A new Avanade report found that 68 percent of enterprises in the region have not formally calculated the financial returns on their AI investments. While 76 percent describe their organizations as advanced or AI-first, only 17 percent have fundamentally changed how teams work around AI. Most spending goes toward small improvements rather than major business transformation, based on a survey of 3,600 business leaders across 11 markets.
Chinese AI chipmakers reached a notable milestone, with Moore Threads, MetaX, and Iluvatar CoreX all reporting third-quarter profitability for the first time. These domestic GPU developers are racing to replace Nvidia chips in China, where high-end processors face strict US export controls. However, supply chain problems and soaring memory costs create uncertainty about whether this profit trend will hold. Meanwhile, KDDI beat its first-half targets with adjusted operating profit rising 13.9 percent year over year, driven by Telecom Core and Business Growth, while funding selective AI infrastructure investment.
Other developments include Broadcom expanding its VMware Cloud Foundation platform with AI infrastructure and security tools, some already available in versions like VCF 9.1.1. In healthcare, Springfield Memorial Foundation and SIU invested 2 million dollars in AI medical education through the Ed Curtis Laboratory for Innovation, which has launched over 20 research projects since early 2025. CR Longdation and GCSA opened an AI and Cybersecurity Research Centre in Hong Kong focusing on anti-fraud, threat detection, and digital finance security. Wall Street continues pushing to create AI compute futures, though Washington roadblocks and political pressure have slowed progress.
Key Takeaways
- Anthropic's $1.5 trillion IPO valuation is under investor pressure, with expectations falling to $1.2–$1.3 trillion and some suggesting closer to $1 trillion.
- Anthropic reported $17.0 billion in Q3 revenue, a $567 million operating loss, and $146.6 billion in cash, but a missing October revenue figure adds uncertainty.
- Democrats winning the US midterm elections triggered a sharp tech selloff, with Apple, Tesla, and Nvidia losing roughly one trillion dollars in one session.
- Alphabet reported US$51.4 billion in quarterly capital investment, while Microsoft is the only major hyperscaler with positive free cash flow at US$18.6 billion.
- Hyperscaler capital expenditure is estimated to reach US$730 billion in 2026, growing over 80 percent year on year, but converting spending to profit remains difficult.
- 68 percent of Asia-Pacific enterprises have not formally calculated financial returns on their AI investments, despite 76 percent calling themselves AI-first.
- Chinese AI chipmakers Moore Threads, MetaX, and Iluvatar CoreX reached profitability in Q3 for the first time, competing to replace Nvidia in China.
- KDDI beat first-half targets with adjusted operating profit up 13.9 percent year over year while funding selective AI infrastructure investment.
- Broadcom expanded its VMware Cloud Foundation platform with AI infrastructure and security tools, with some features already available in VCF 9.1.1.
- Springfield Memorial Foundation and SIU invested 2 million dollars in AI medical education, launching over 20 research projects since early 2025.
Anthropic IPO faces investor push for better terms
Investors are pressuring Anthropic to offer better terms before committing to its upcoming IPO. Some view the $1.5 trillion valuation as the upper limit of what they will accept. The company may need to offer a larger discount or delay the offering. A key missing October revenue figure is adding to the uncertainty.
Big investors doubt Anthropic IPO at $1.5 trillion
Three major investors said Anthropic's $1.5 trillion IPO valuation will likely need to come down, with one suggesting a figure closer to $1 trillion. Anthropic still plans to list on the Nasdaq, but timing remains uncertain. The company reported $17.0 billion in third-quarter revenue and a $567 million operating loss. It has $146.6 billion in cash and can afford to wait for better market conditions.
Anthropic IPO valuation expectations fall after AI stock drop
Prospective buyers are now discussing a $1.2 trillion to $1.3 trillion valuation range for Anthropic, down from $1.4 trillion to $1.5 trillion. Formal marketing for the offering is set to begin next week, but nothing is final. The Cboe Volatility Index reached its highest level since April 2025. Experts say the price could land even lower than current expectations.
AI backlash could threaten Anthropic IPO timing
Potential investors are raising doubts about whether Anthropic can hold its roadshow next week for a November listing. They want a more attractive valuation and are watching for the missing October revenue figure. The recent AI stock selloff and political opposition to data centers are adding pressure. A delay could raise broader concerns about the AI industry and stock market.
Major investors skeptical of Anthropic $1.5 trillion IPO valuation
Major investors are increasingly doubtful that Anthropic can complete its IPO at a $1.5 trillion valuation after a sharp market selloff tied to AI stocks. Anthropic had planned to raise up to $100 billion in what would be the largest IPO on record. The company is aiming to list the week before Thanksgiving. The market downturn has forced a reassessment of the deal.
Who can afford the AI boom
Companies like Alphabet and Amazon are spending billions on AI infrastructure, with Alphabet reporting US$51.4 billion in capital investment in one quarter. Both firms face negative free cash flow as they race to build computing capacity before knowing if customers will pay enough to profit. Microsoft stands out as the only major hyperscaler with positive free cash flow at US$18.6 billion. The key question is how long these companies can sustain heavy spending and whether future returns will justify the costs.
Indian IT stocks seen as safe AI trade picks
Anand Rathi says Indian IT companies like Tech Mahindra, LTIMindtree, and Mphasis could benefit as global tech giants spend heavily on AI infrastructure. Hyperscalers combined for over US$1.8 trillion in cloud backlogs, but converting growth into profit remains difficult. Anand Rathi estimates hyperscaler capital expenditure will reach US$730 billion in 2026, growing over 80 percent year on year. Indian IT firms trade at lower valuations and offer strong free cash flow yields compared with global peers, making them attractive asset-light alternatives.
APAC enterprises slow to review AI returns
A new Avanade report found that 68 percent of Asia-Pacific enterprises have not formally calculated the financial returns on their AI investments. While 76 percent of respondents described their organizations as advanced or AI-first, only 17 percent had fundamentally changed how teams work around AI. Most spending on AI goes toward small improvements rather than major business transformation. Researchers surveyed 3,600 business leaders across 11 markets in August and September 2026.
Broadcom expands VCF with AI and security tools
Broadcom announced a major expansion of its VMware Cloud Foundation platform on November 4, adding AI infrastructure, security, and recovery features. Some capabilities are already available in versions like VCF 9.1.1 and VCF 9.1, while others such as AI Infrastructure Quickstart and native disaster recovery are planned for future releases. The move aims to consolidate more enterprise tasks into one platform, but buyers must carefully check which features are delivered now versus planned later. Nutanix serves as a competitive reference in this growing market for combining infrastructure with AI management.
China AI chipmakers report first profits
Chinese AI chipmakers including Moore Threads, MetaX, and Iluvatar CoreX reached profitability in the third quarter for the first time. These domestic GPU developers are racing to replace Nvidia chips in China, whose high-end processors face strict US export controls. The companies are competing to win domestic enterprise clients and attract major cloud service providers. However, supply chain problems and soaring memory costs create uncertainty about whether this profit trend will continue.
KDDI beats first half plan with telecom and AI investment growth
KDDI exceeded its first half revenue and profit targets. Telecom Core and Business Growth drove the results. Adjusted operating profit rose 13.9 percent year over year. Management expects to meet the full year operating income target while funding selective AI infrastructure investment.
AI stock bubble fears grow after Democrats win midterm elections
Global tech stocks fell sharply after Democrats won the US midterm elections. Major companies including Apple, Tesla and Nvidia lost about one trillion dollars in one trading session. Fears grew that AI development could slow down. Experts discussed whether this was market jitters or a sign the AI bubble might burst.
Springfield Memorial Foundation and SIU invest 2 million in AI medical education
The Springfield Memorial Foundation gave 1 million and SIU School of Medicine matched it with 1 million. The money supports the Ed Curtis Laboratory for Innovation in Medical Education. The lab uses AI and extended reality to create immersive training for medical students and healthcare professionals. Since early 2025, the team has launched over 20 research projects. One project called Difficult Conversations lets students practice delivering serious diagnoses.
Wall Street push to trade AI compute meets Washington roadblock
Wall Street wants to create a price for AI compute but Washington may block it. Exchange operators are racing to launch AI compute futures. Intercontinental Exchange CEO Jeff Sprecher said he is bullish but cautious. He noted lenders may demand companies lock in GPU prices when borrowing. Pressure from the Trump administration also forced Kalshi to back down.
CR Longdation and GCSA open AI cybersecurity research centre in Hong Kong
CR Longdation Aethereal Cybersecurity partnered with the Global Cybersecurity Alliance to open the AI and Cybersecurity Research Centre in Hong Kong. The centre will focus on AI anti-fraud, cyber threat detection, digital finance security and cybersecurity automation. It will explore technologies like AI anti-fraud honeypots and threat intelligence analysis. CR Longdation provides AI-driven cybersecurity services to government and enterprises. GCSA promotes innovation in cybersecurity fields including AI and Web3.
Sources
- Anthropic’s November IPO Plans Face Investor Push for Better Terms
- Big Investors Now Doubt Anthropic Can IPO at $1.5 Trillion After the AI Crash
- Anthropic's IPO valuation expectations are falling after AI stock selloff
- Exclusive-AI backlash could threaten Anthropic IPO timing, potential investors say
- Exclusive | Major Investors Are Skeptical Anthropic IPO Can Achieve $1.5 Trillion Valuation
- Who can afford the AI boom?
- Indian IT stocks emerge as 'safe AI trade' amid rising Big Tech spending; Anand Rathi prefers TechM, LTM, Mphasis
- Avanade: 68% of APAC enterprises have yet to formally review AI investment returns
- Broadcom VCF Expansion Brings AI, Security, and Recovery Into One Platform
- China’s AI chipmakers report first profits, but will the trend continue?
- KDDI: H1 beat plan as telecom and business growth supported selective AI investment
- Could the AI bubble burst after Democrats' midterms sweep?
- Springfield Memorial Foundation and SIU invest $2 million for AI in medical education - Illinois Times, the capital city's source of news, politics, arts, entertainment, culture
- Wall Street’s push to trade AI compute hits Washington roadblock
- CR Longdation cybersecurity partners with GCSA establishing artificial intelligence research centre
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