The AI Craze: Is It a Bubble? Market Skepticism Surrounding Anthropic's IPO

AI Summary

Due to the sharp decline in AI-related stocks and general market volatility, concerns are mounting that the valuation of AI company Anthropic—once projected to reach $2 trillion—may be adjusted to the $1 trillion level.

Imagine your shop, which you have nurtured with great care for years, is finally preparing for its “Initial Public Offering (IPO)”—the moment it debuts on the stock market to become accessible to everyone. However, market conditions are poor, and those who once valued your shop highly have suddenly begun to step back, asking, “Well, is it really worth that much?”

Anthropic, a rising star in the artificial intelligence (AI) industry, is currently facing this exact situation. The market once expected the company to be valued at a staggering $2 trillion (approximately 2.8 quadrillion KRW—an immense figure comparable to the entire South Korean economy) upon going public. Now, however, an uneasy sentiment is gripping the market that this expectation could be halved to the $1 trillion level.

Why It Matters

Why does this news matter to the average person? It is because AI is already deeply integrated into our daily lives; this is not merely a “story about giant corporate stocks.”

The voice assistants on our smartphones and the AI tools that summarize documents at work stem from the technology investments of these companies. If the market no longer values AI companies highly, those companies may have to scale back on ambitious technological development or large-scale server investments. In other words, the smart AI services we conveniently enjoy today could become more expensive or see their pace of development slow down.

The Explainer

Simply put, Anthropic is a factory that builds “digital brains” called AI. Why does the value of this factory fluctuate so much?

For example, when we buy a product, we ask ourselves, “How much money will this make in the future?” The stock market is the same. Initially, Anthropic boasted, “We will be a $2 trillion company!” That confidence stemmed from the belief that the AI they create would transform every industry in the future.

However, the “customers” known as the market have suddenly turned skeptical:

The Shopping Craze Cools Off: People rushed frantically into AI-related stocks, but they have now begun selling them, asking, “Will this bubble burst?” Source: Anthropic IPO valuation could fall to $1 trillion after AI stock rout
Perception of Growth Rate: While Anthropic is still making significant money, indicators show that the speed at which it is generating that revenue is no longer as explosive as it once was. Source: Anthropic IPO filing shows revenue growth slowing

To use an analogy, it’s like “a student who is still first in the class, but the margin by which their score increased compared to the last exam has decreased.” It is still a formidable company, but investors are sensitive to that “decrease in the growth margin.”

Where We Stand

The current market is very sensitive. In October, the Nasdaq index (the stock market indicator focused on technology) had its most difficult month since March 2025. Source: Investors brace for Anthropic valuation; $1.5 trillion a stretch

Political conflicts are also playing a role in this cooling market. In particular, as the issue of building large-scale “data centers”—the core facilities needed to run AI—became controversial around the election, investment in related areas has become uncertain. Source: Anthropic IPO valuation could plunge to near $1 trillion amid market turmoil Investors are currently recalculating whether the so-called “AI trade” is truly a safe bet.

What’s Next

We should keep an eye on two things moving forward.

First, will Anthropic push forward with its IPO, or will it wait until the market stabilizes? The valuation of Anthropic as traded on platforms like Hyperliquid (a derivatives platform) has already fallen by approximately $340 billion over the past few months, reflecting the market’s cold gaze. Source: Anthropic’s implied pre-IPO valuation plunges

Second, how quickly will AI technology transition from an era where it receives investment solely based on “expectations” to an era of “real profits” that generate actual revenue? Many experts believe that the current market has moved beyond the stage of simply being swept up in the hype and has entered a cool-headed phase of verifying performance. Source: Anthropic IPO valuation: Doubts over reaching $1.5 trillion after tech sell-off

MindTickleBytes’ AI Reporter Perspective

The market is always walking a tightrope between people’s expectations and actual performance. The case of Anthropic clearly shows that AI technology has reached a testing ground where it is evaluated no longer as a “future dream” but as “current business.” Ultimately, the true key to riding the waves of this turbulent market will be who can build truly useful AI that generates profit.

References

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Test Your Understanding

Q1. What is the main reason Anthropic's IPO valuation is wavering?

Stagnation in AI technology development
Broad market sell-off of AI-related stocks and uncertainty
Sudden management turnover

With the recent tech stock sell-off and growing market anxiety surrounding AI, investors have become skeptical of previously high valuations.

Q2. What is the current state of Anthropic's revenue growth?

Sharply down from the previous year
Growth has stalled
Still doubling, but growth rate is slowing

Anthropic is still showing remarkable growth, but the rate of revenue growth has been shown to be slower than before.

Q3. Which infrastructure, mentioned as a concern by investors, is impacting the valuation?

Nationwide data center construction projects
New office expansion
Establishment of overseas branches

Nationwide data center construction has emerged as a political issue, adding to market uncertainty.