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Anthropic‘s blockbuster public listing could reportedly price well below its $1.5 trillion target after Thursday’s selloff erased about $3 trillion from the U.S. stock market.

Investors Say the Valuation May Need to Fall

Three major investors planning to take part in the offering said the valuation will likely need to come down, with one putting it closer to $1 trillion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Another investor said Anthropic could potentially delay the offering, since it could be hard to convince institutional investors “burned in the recent selloff” to “take a big risk on the artificial-intelligence sector again.”

The company could also raise less than the expected up to $100 billion.

The Claude maker is aiming to list the week before Thanksgiving, and executives and advisers are expected to meet in the next few days to discuss the plans.

Anthropic did not immediately respond to Benzinga’s request for comment.

AI Valuations Draw Pushback

The Nasdaq 100 had its biggest one-day drop since the 2020 pandemic Thursday after Democrats took control of Congress in the midterm elections, and the S&P 500 lost about $3 trillion.

Blackstone Inc. has warned that Anthropic may struggle to get an investment-grade rating after its IPO, which would raise its borrowing costs.

The company filed its S-1 last month, targeting a Nasdaq listing under ANT.

Anthropic had been poised to set the record for the largest IPO ever, surpassing Space Exploration Technologies Corp.‘s June offering, which debuted with a market capitalization of about $2.1 trillion.

Michael Burry Questions Anthropic’s Partners

The famed ‘Big Short’ investor Michael Burry on Wednesday questioned whether Anthropic’s cloud partners were helping the AI company improve its financial appearance ahead of its IPO.

In a Substack post reviewing Anthropic’s amended S-1 filing, Burry highlighted how sales, marketing and partnership expenses fell to 14% of revenue in the third quarter, down from 19% in the second quarter and 22% in the first.

In September, OpenAI had ruled out an IPO in 2026.

Price Action: Tema Photonics & Optical ETF (NYSE:LAZR), which holds Anthropic shares ahead of the IPO at a 10.5% weighting, closed 15.01% lower on Thursday at $25.87 and fell 5.64% to $24.41 in extended trading.

Benzinga Edge rankings indicate Tema Photonics ETF has a negative price trend across the short, medium, and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.