XN is not backing away from Anthropic. The New York investment firm founded by Gaurav Kapadia plans to be a “large participant” in the Claude maker’s initial public offering despite a sell-off in AI stocks, the Financial Times reported. Public-market investors, however, are questioning Anthropic’s proposed $1.5 trillion valuation.

XN plans to add to its $5.3 billion position

In a letter issued Thursday, Kapadia praised Anthropic’s financial discipline and described the company as a future “category-defining” business.

XN first invested in Anthropic in 2025 and participated in three funding rounds. Its holding was valued at $5.3 billion during Anthropic’s Series H financing in May, when the company raised $65 billion at a $965 billion valuation.

XN intends to increase its stake once Anthropic goes public, although the firm has not yet purchased additional shares in the IPO. It is expected to hold its existing assets for a considerable period. According to Kapadia’s letter, investors will be permitted to sell only 8% of their assets during the first quarter after the listing — a mechanism similar to the lockup periods that commonly accompany public offerings.

Prospective buyers seek a lower price

Some prospective IPO investors do not share XN’s confidence. Four people familiar with investor discussions told Reuters that Anthropic’s proposed $1.5 trillion valuation appeared too high after the technology-sector sell-off. That proposed figure would be a step up from the $965 billion valuation set in Anthropic’s May Series H financing. Buyers could seek a lower price, potentially delaying the roadshow scheduled for the week of November 9.

Anthropic’s recent sales performance is another concern. The company did not disclose its October revenue in an amended filing. Investors want that figure to assess whether growth has recovered after a recent slowdown. Earlier expectations had placed Anthropic’s IPO valuation at $2 trillion.

A lower valuation could also affect the broader AI industry. Barclays strategist Julien Lafargue has warned that reduced IPO funding could leave less capital available for infrastructure investment and place additional pressure on valuations across the sector.

Anthropic’s filing highlights financing questions

Anthropic’s SEC filing helps explain investor caution. The company reported $17 billion in third-quarter revenue, a $23.3 billion net loss and $895.4 billion in multi-year commitments for computing and infrastructure.

Most of the net loss resulted from noncash changes in the value of convertible financial instruments. Anthropic’s operating loss — a measure that leaves out those noncash swings — was considerably smaller, at $567 million.

The central question is how Anthropic will finance its expansion. Cryptopolitan reported that bankers are seeking investment-grade credit ratings for Anthropic and OpenAI. Such ratings could improve both companies’ access to bond markets. Borrowing, however, would increase financial pressure if returns from AI investments fall short.

Private investors remain interested, but more selective

Despite financing concerns, private investors remain interested in AI. An HSBC survey found that 85% expected AI to attract the largest share of private capital in the next quarter. Another 63% expected AI companies to lead IPO listings.

The survey also showed reservations. About 56% of respondents anticipated a meaningful slowdown in AI infrastructure spending within six to 12 months.

Data from Carta likewise points to a more selective investment environment. AI accounted for 57% of Series B-and-later funding on its platform in 2026, while the overall number of third-quarter deals declined 21% year over year.

Financing concerns spread to public markets

Questions about how AI expansion will be financed have also unsettled public markets. Lafargue said investors are questioning the funding of AI expansion rather than whether demand exists. Strong results from ASML, TSMC and Schneider Electric nevertheless failed to sustain gains in their share prices.

Selling pressure soon spread to Asia. TSMC shares hit their daily downward price limit at Friday’s open in Taiwan, Reuters reported.

The Bank for International Settlements has also warned that the AI investment commitments of major cloud companies are outpacing their earnings and free cash flow.

Against this backdrop, a delayed Anthropic IPO or a lower valuation could add to pressure on market confidence. The near-term markers to watch are whether Anthropic discloses its October revenue before pricing, whether the roadshow proceeds as scheduled for the week of November 9, and where the offer price ultimately lands. For now, the offering’s final price and timing remain uncertain.