XN, the New York investment firm founded by Gaurav Kapadia, plans to be a “large participant” in Anthropic's initial public offering despite the ongoing AI stock sell-off, the Financial Times reported. Public-market investors, meanwhile, are questioning the Claude maker's proposed $1.5 trillion valuation.

A $5.3 billion stake — and a plan to add to it

In a letter sent Thursday, Kapadia praised Anthropic's financial discipline and described the company as a future “category-defining” business. XN first invested in 2025 and has taken part in three of the company's funding rounds. Its stake was worth $5.3 billion at Anthropic's May Series H, when Anthropic raised $65 billion at a $965 billion valuation.

The firm intends to increase its position once Anthropic goes public, having not yet bought additional shares in the IPO. Exiting will take considerable time: according to Kapadia's letter, investors may sell only 8% of their holdings during the first quarter after listing — a common IPO restriction, known as a lock-up, intended to prevent a wave of share sales immediately after trading begins.

Prospective buyers push for a discount

XN's confidence is not universally shared. Four people familiar with investor discussions told Reuters that the proposed $1.5 trillion valuation looked too high after the technology sell-off. Buyers could demand a lower price, potentially delaying the roadshow planned for the week of November 9, the pre-listing stretch in which a company markets its offering to institutional investors before setting a final price.

Investors are also focused on recent sales performance. Anthropic did not disclose an October revenue figure in its amended SEC filing, an updated registration statement that companies file with regulators in the run-up to a listing — a number prospective buyers want in order to assess whether growth has recovered from a recent slowdown. Earlier expectations had put the IPO valuation at $2 trillion.

A lower valuation could also have repercussions for the wider AI industry. Barclays strategist Julien Lafargue has cautioned that reduced IPO funding could leave less capital available for infrastructure investment and put additional pressure on valuations across the sector.

What the SEC filing shows

Anthropic's filing helps explain the caution. The company reported $17 billion in third-quarter revenue alongside a $23.3 billion net loss and $895.4 billion in multi-year computing and infrastructure commitments — a sum more than 50 times its third-quarter revenue. Most of the net loss stemmed from noncash changes in the value of convertible financial instruments; the operating loss was considerably smaller, at $567 million.

How Anthropic will finance its expansion remains the bigger question. Cryptopolitan has reported that bankers are seeking investment-grade credit ratings for Anthropic and OpenAI, which could improve their access to bond markets. Borrowing, however, would add financial pressure if AI returns fall short.

Private capital still favors AI, with reservations

Despite the financing questions, private investors remain enthusiastic about AI. An HSBC survey found that 85% of respondents expected AI to attract the most private capital next quarter, while 63% expected AI companies to lead IPO listings.

That optimism comes with caveats: 56% anticipated a meaningful slowdown in AI infrastructure spending within six to twelve months.

Data from Carta also points to a more selective investment market. AI attracted 57% of Series B-and-later funding on its platform in 2026, while the overall third-quarter deal count fell 21% year over year.

From funding doubts to Asian chip floors

Financing concerns have unsettled public markets as well. Lafargue argues that investors are questioning how AI expansion will be funded, rather than whether demand exists. Even strong results from ASML, TSMC and Schneider Electric failed to sustain their share-price gains.

The selling has spread to Asia: in Taiwan, TSMC shares hit their daily downward price limit — the exchange-imposed cap on how far a stock can fall in a single session — at Friday's open, Reuters reported. The Bank for International Settlements has also warned that major cloud companies' AI investment commitments are outpacing earnings and free cash flow.

Against that backdrop, a delayed Anthropic IPO or a lower valuation could further weaken market confidence. For now, the offering's final price and timing remain uncertain; the disclosure of an October revenue figure, the start of the roadshow in the week of November 9, and the final pricing decision are the near-term markers to watch.