Anthropic IPO valuation expected at $1.5 trillion, lower than initial $2 trillion projection

Investors attending Anthropic's investor day in San Francisco reported a valuation around $1.5 trillion for the November listing, significantly lower than the previously expected $2 trillion. Anthropic reported third-quarter revenue of $16.8 billion, a 45% rise, and stated it was profitable on an adjusted basis. However, the growth pace slowed from $11.6 billion in the second quarter, partly due to large clients like Meta and Microsoft building their own AI models, and Anthropic cutting back on distillation, which accounted for 5% to 7% of revenue. Furthermore, Anthropic priced Claude Haiku 5.5 about 75% below its predecessor amid pressure from low-cost Chinese labs. Despite the lower valuation, $1.5 trillion is still below SpaceX's $1.77 trillion valuation from its June listing.