Anthropic IPO valuation rumored to drop to $1.5 trillion

Anthropic’s IPO price is rumored to be reduced from $2 trillion to $1.5 trillion. The company reported Q3 revenue of $16.8 billion, up 45% from Q2, with an 85% gross margin and profitability on an adjusted basis. Growth rates are slowing from previous 10x annual increases, with analysts projecting a run rate of $20 billion by the end of the year. Market share volatility is a concern, with potential for a 10% decline in Anthropic's share by next year due to competition from OpenAI and open-weight models. Replit recently switched its default model routing from Anthropic's Claude to OpenAI's models, citing that OpenAI offers comparable quality at 30-40% lower cost. This shift highlights the price sensitivity of developers and the competitive pressure on foundation model providers.

Anthropic announced that they'd turned profitable on an adjusted basis, gross slows, IPO price potentially rumored to be going down from $2 trillion to $1.5 trillion. The company faces significant competitive pressure on pricing and market share, which may impact its post-IPO performance. Analysts note that the growth slowdown is a natural correction from unsustainable highs, but the competitive landscape remains intense.