MYTE

Anthropic, the creator of Claude, the popular AI chatbot, has maintained that its initial public offering (IPO) will go on this year despite the ongoing jitters in the artificial intelligence (AI) industry.

Recent reports suggest the company has scaled back its valuation target, with management now aiming for $1.5 trillion, down from an earlier $2 trillion. It plans to raise $100 billion in the process.

Recent IPOs Suggest ANT Stock Will Rise Then Drop

The most recent IPOs provide hints on how Anthropic’s stock will trade after going public. In most cases, these stocks tend to jump and then pull back as investors start booking profits and the hype dries.

A good example of this is SpaceX, which went public in the most hyped IPO this year. The stock initially jumped to $225 and then slumped to $104 within the first few weeks. Its attempts to recover found substantial resistance at $176.33.

SpaceX stock has dropped because of its growing capital expenditures as Elon Musk and the team continues investing in data centers.

Meanwhile, Circle Internet initially went parabolic, moving from $60 to $300 within weeks. It then dropped to a record low of $50 in February this year, with all attempts to bounce back facing substantial resistance.

Cerebras Systems stock more than doubled in the first day of trading, eventually reaching a high of $386. Since then, the stock has slumped to $89.

The same scenario has happened across other recent IPO, including companies like Gemini Space Stations, Bullish, BitGo, and Madison Air Solutions.

Anthropic is Facing Major Challenges as it Nears its IPO

The upcoming Anthropic IPO comes as the company is facing some major challenges. On the positive side, its revenue growth is gaining momentum, with the third-quarter figure hitting $18.6 billion. However, the report also showed that two customers account for a fifth of its total revenue.

Another risk is that the Democrats won the House of Representatives and the Senate on the promise to regulate the AI industry. Calls for regulating the industry have jumped after the recent security incidents, in which AI has hacked some companies.

Further, competition, especially from low-cost platforms like Kimi and DeepSeek is rising. It is also competing with other cash-rich companies like OpenAI, Grok, and Gemini.

Most importantly, the company plans to continue boosting its capital expenditure in the coming years. It plans to spend $895 billion in capital expenditures in the coming years. Anthropic ended the last quarter with over $95.6 billion in cash.