Anthropic is preparing for a major initial public offering before the Thanksgiving holiday. however, the AI developer is facing significant headwinds from skeptical investors and political leaders concerned about safety.

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The 45% growth deceleration hitting Anthropic's valuation

Anthropic recently held a presentation for investors that showcased a revenue of $16.8 billion, a figure that includes a $5 billion increase in the most recent period. However,the enthusiasm was tempered by a noticeable deceleration in growth. As reported by the Financial Times, while revenue more than doubled between the first and second quarters, the growth rate slowed to 45% between the second and third quarters.

This slowdown has led some investors to consider slashing the company's valuation by approximately half a trillion dollars.. The lofty financial expectations for the firm had previously been anchored by its position as a primary driver of the current AI hype cycle, but the recent metrics have introduced a new layer of skepticism regarding its long-term trajectory.

A half-trillion-dollar infrastructure commitment

The financial pressure on Anthropic is compounded by its massive long-term capital requirements. The company plans to invest more than $500 billion into AI infrastructure over the next decade, a move that necessitates massive, sustained revenue stremas. This includes significant financial arrangements with major technology players including Amazon, Microsoft, and Google.

This aggressive spending pattern has fueled fears of a market bubble, a concern echoed by investor Michael Burry, who recently suggested that an AI-driven crash could be imminent. According to the report, the outcome of Anthropic's IPO will be a deciding element in whether these fears of a sector-wide burst are realized.

Mark Levine’s push to prioritize safety over the IPO

New York City Comptroller Mark Levine has formally challenged Anthropic's timeline, sending a letter to CEO Dario Amodei requesting a delay of the Thanksgiving-period debut. Levine's primary concern is that the pressures of being a public company will force the firm to prioritize quarterly profits over essential safety guardrails.

Because New York City pension funds are exposed to Anthropic,Levine argued that the city has a direct stake in ensuring the company does not experience a safety crisis that could devastate its stock price and the broader market. He urged the company to focus on transparency and safety confidence before becoming a publicly listed entity.

Will FTC subpoenas and Sam Altman's caution force a delay?

Several critical uncertainties remain regarding the company's path to the public market. While the Federal Trade Commission has subpoenaed both Anthropic and OpenAI over safety concerns, the specific nature of the investigations remains undisclosed. It is currently unknown if these regulatory pressures will result in formal charges or forced changes to the company's operational model.

Additionally , the industry is watcihng to see if Anthropic will adopt the strategy of OpenAI CEO Sam Altman. Altman recently told Fortune that postponing an IPO allows a company to make decisions based on mission and safety rather than purely shareholder interests. It remains to be seen if Anthropic will prioritize these long-term safety goals or push forward with its scheduled debut despite the mounting scrutiny.