Anthropic (ANTH.PVT) is widely expected to launch its initial public offering sometime between now and the end of the month.
But those chances ran into a massive market buzzsaw on Thursday amid a widespread pullback in tech stocks, with names including AMD (AMD), Broadcom (AVGO), Micron (MU), Nvidia (NVDA), and Tesla (TSLA) leading the declines.
The sharp drop sent the tech-heavy Nasdaq (^IXIC) tumbling more than 5%, while the S&P 500 (^GSPC) and Dow (^DJI) dropped nearly 4% and more than 3%, respectively.
The rout sent odds of Anthropic filing its IPO by Nov. 30 on prediction market Kalshi plunging from 84% just yesterday to 60% Thursday afternoon. Odds that the company would file by Dec. 31 also fell from 90% to 74%.
Odds on Polymarket were about the same.
Anthropic is expected to fetch a market valuation of between $1.5 trillion and $2 trillion when it goes public.
Read more: Everything you need to know ahead of Anthropic’s IPO
The steep drop on Wall Street comes after Tuesday’s election results swept Democrats into power in the House and Senate.
That has raised questions about the nationwide data center build-out, which became a flash point in the lead-up to the election, with President Trump widely supporting the effort.
Democrats, and some Republicans, however, seized on backlash against data centers and AI more broadly, driving concerns that projects could be canceled or otherwise hindered.
Meta (META) president Dina Powell McCormick told an audience at the Wall Street Journal’s WSJ Tech event on Wednesday that building data centers will be harder following the election results.
On Thursday, OpenAI (OPAI.PVT) outlined its latest policy proposals for data centers it owns and operates, including ending non-disclosure agreements with towns and paying the full cost of the electricity it uses and the infrastructure needed to serve the company’s facilities.
Anthropic’s IPO will test the market’s appetite for AI firms, setting the stage for OpenAI’s eventual public offering, which is anticipated early next year.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley, or reach out on Signal or Telegram.
