Key facts
- A poll at a tech event found only three attendees would buy Anthropic shares at a $3 trillion valuation.
- When asked about buying shares at $1.5 trillion, a few more hands were raised.
- Anthropic is expected to go public at a valuation of $2 trillion.
- The IPO market has seen few offerings despite high dollar amounts raised, with some closely watched candidates stumbling.
- Companies are hesitant to go public before Anthropic and OpenAI complete their offerings.
- Investors are now looking for 'growth with cash efficiencies and discipline' rather than 'growth at all costs'.
A poll conducted at a San Francisco tech event revealed a muted investor response to Anthropic's potential valuation, with only three attendees indicating they would buy shares at $3 trillion. When the hypothetical valuation was lowered to $1.5 trillion, a few more hands went up, highlighting skepticism about the AI company's expected $2 trillion IPO.
The event, "Tech Insider: Growth Mode," sponsored by Fidelity, featured discussions on the current IPO market. While the overall dollar amount raised this year has been high, driven by large offerings like SpaceX's, the number of individual offerings has been relatively low, and some anticipated IPOs have been delayed or pulled due to market conditions.
Heidi Mayon, a partner at Simpson Thacher, noted that many companies are waiting for Anthropic and OpenAI to complete their public offerings before proceeding. She suggested that companies might benefit from more conservative pricing to allow for a first-day stock price increase. Nasdaq's Jack Cassel, however, stated that sufficient capital exists for IPOs, but investor expectations have shifted towards companies demonstrating "growth with cash efficiencies and discipline."
Anthropic's IPO is anticipated to be a significant test of whether the high valuations seen in the private AI market can be sustained in the public markets.