Anthropic’s third-quarter results showed slowing revenue growth and expenses rising at a faster pace, increasing the risks surrounding its IPO. The company is seeking a valuation of $1.5 trillion to $2 trillion, although institutional investors are reportedly pushing for the lower end of that range. Against $35.3 billion in revenue over the past 12 months, this would represent $43 to $57 in valuation for every dollar of sales, a level achieved by only 14 IPOs between 1980 and 2024. In the third quarter, revenue rose nearly 47%, while compute and infrastructure expenses climbed about 77% to $9.9 billion, reducing the adjusted operating margin from 19% to 15%. Anthropic nevertheless holds $131.8 billion in cash, cash equivalents, and short-term investments, and several analysts believe sustained revenue and profit growth could support the planned valuation.
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