Episode summary
Anthropic IPO Buyers See Valuation as Low as $1.1 Trillion | Bloomberg Intelligence
Bloomberg Intelligence
· · 22 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Anthony Hughes, Anurag Rana, Brett Ryan, Dan Ives, Abigail Gilmartin
Summary
Anthropic’s upcoming IPO was the main focus, with the host and a guest saying the deal appears likely to proceed despite a punishing post-election selloff. Prospective buyers are now discussing a valuation range of $1.2 trillion to $1.3 trillion, with some even weighing $1.1 trillion, down from earlier talk as high as $1.5 trillion. The guest argued that the company is still growing fast enough, and with an October run rate reportedly above $80 billion and a potential cash pile near $200 billion after the offering, it remains a must-own AI name for many investors.
The discussion also centered on whether the broader AI buildout is being slowed, not stopped, by political change and tighter scrutiny on data centers. One analyst said the demand for capacity still far exceeds supply, so delays of six to 12 months would mostly elongate the cycle and could even improve free cash flow for hyperscalers. Another market participant argued that the selloff had overreacted to the election result and that most already permitted data centers, especially in Texas, are still likely to get built.
The episode briefly touched on Under Armour’s weaker margin outlook, with the retail analyst saying the brand’s turnaround is still being pushed out as inventories remain elevated and marketing becomes more important.
Key takeaways
- Anthropic’s IPO still appears likely to launch soon, with buyers now discussing a $1.2 trillion to $1.3 trillion valuation and some as low as $1.1 trillion.
- The guest said Anthropic’s scale and growth could justify investor demand even after the AI trade’s sharp selloff.
- A Bloomberg Intelligence analyst argued that data-center restrictions would slow, not kill, AI capex because demand still far exceeds supply.
- The analyst said delays could actually help hyperscalers by easing spending and improving free cash flow.
- Under Armour’s quarter was slightly better on sales, but the retail analyst said inventory and margin pressure still point to a delayed turnaround.
Notable quotes
“the deal is probably going ahead and I think it all depends a little bit on the broader market conditions”
“we're still looking at valuations of more than a trillion dollars”
“I think there's nothing more than just slowing down things a little bit. I don't think it changes the narrative in the long run”
“the demand is absolutely strong. We saw that from the backlog of every hyperscaler right that reported in the last month”
How the episode opens
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Listen on demand wherever you get your podcast or watch us live on YouTube. back here in New York. Um there's a small company that was talking to investors this week during the election.
It's uh anthropic and you know when I say small not really because we're still looking at valuations of more than a trillion dollars. Anthony Hughes is our equity uh capital markets reporter here in the US joining us in studio. Anthony, um the market has been extremely volatile and there are questions about whether this is the kind of environment that would prompt a company to say, you know what, I'm not going to necessarily go forward with an IPO that I had planned because conditions are not quite right.
What are we thinking for Anthropic?
Well, Scarlet, there's lots of different opinions out there about what may or may not happen. And next week will be the week when uh Anthropic will um have the chance to launch the IPO, begin marketing the IPO if it if it if it if it decides to. I mean, some people think that they should delay the IPO, but I think as best as we can discern right now, I think the deal is probably going ahead and I think it all depends a little bit on the broader market conditions.
I think um as we looked at this IPO maybe over recent months, I think we probably our starting point was that Anthropic was somewhat immune from broader events.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- anthropic ipo valuation
- ai data center expansion
- democrat-led state scrutiny
- us tech selloff
- under armour earnings guidance
Companies and tickers mentioned
- DB
- UAA
- Anthropic
- Deutsche Bank
- Under Armour
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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