Following the 2026 U.S. midterm elections, concerns have emerged regarding the impact of artificial intelligence (AI) investments being restricted by new policies. This sentiment has led to a decline in technology stocks within the U.S. stock market, with heightened attention now focused on Anthropic, a company on the verge of what could have been the largest initial public offering (IPO) in American history.
In the aftermath of the 2026 midterm elections, the Democratic Party secured victories in both the House and the Senate, as well as in several gubernatorial races. Many of the winning candidates pledged to impose limitations on the construction of AI data centers and enhance industry regulation, instilling worries within the market.
On November 6, Nomura Securities released a report indicating that the Democrats had won key gubernatorial positions in several states crucial to data center development. The newly elected leaders emphasized concerns over the cost of electricity for consumers, energy affordability, and corporate accountability during their campaigns. Stricter municipal regulations, along with prohibitions against signing confidentiality agreements during early site selection phases and mandated clean energy procurement requirements, are set to replace the previously favored rapid industrial development model.
The results of the midterm elections sparked a wave of anxiety regarding AI-related investments, which quickly permeated the stock market within two subsequent trading days. The Nasdaq Composite Index experienced a notable drop of 5.5% in a single day, marking its largest decline in 18 months. Meanwhile, the Philadelphia Semiconductor Index (SOX) saw a two-day cumulative loss approaching 15%. Notable tech companies like Nvidia fell approximately 12% over the two days, while Micron Technology’s stock tumbled by about 24%. In South Korea, SK Hynix and Samsung Electronics saw declines of 9.5% and 7.5%, respectively, triggering automatic trading halts in the KOSPI market.
Amid these market fluctuations, the IPO plans of Anthropic, known for developing the acclaimed AI model Claude, have garnered significant attention. Prior to the midterm elections, Anthropic had already felt the impact of a turbulent tech stock environment. According to a report from Bloomberg on November 6, early in October, some investors considering participation in the IPO had estimated Anthropic’s valuation to reach an astounding $2 trillion, positioning it as one of the largest IPOs in history. However, following the disclosure of financial data in October, expectations for that valuation have since been revised downward to a range between $1.4 trillion and $1.5 trillion.
The recent sell-off of tech stocks has further influenced Anthropic’s anticipated valuation at launch. Max Kettner, Chief Strategist for Diverse Assets at HSBC, suggested that a valuation of around $1 trillion might be a more realistic figure, potentially minimizing the risk of extreme fluctuations once trading commences.
For Anthropic, lowering the expected valuation could help attract more buyers, but if the company wishes to raise the same amount of funds through its new stock issuance, it would need to relinquish a larger equity stake. Alternatively, reducing the issuance scale would decrease the influx of new capital. This IPO’s pivotal aspect has now shifted toward determining at what valuation the market is willing to support Anthropic’s next phase of computational investment and business growth.
According to the Wall Street Journal, Anthropic is striving to conduct its IPO in the week leading up to Thanksgiving. However, three primary investors planning to participate have indicated that a valuation adjustment will likely be necessary, with one investor suggesting the figure could be closer to $1 trillion.
In the coming days, Anthropic executives and their advisers are expected to convene to discuss the company’s IPO strategy. Several well-informed sources indicated that to maintain flexibility, they have refrained from finalizing specific plans throughout this process.
Analysts suggest that Anthropic’s plans carry significant implications for the market and the economy, not only due to the proposed issuance’s scale but also because of the interconnections between the company’s operations and those of tech giants like Google, Amazon, and Nvidia. Both private market and public market investors are apprehensive that changes to Anthropic’s IPO plans could adversely affect other assets within their investment portfolios.