New York Angels' Peck Says Anthropic IPO Could Lift Tech After AI Selloffs
Bob Peck, a New York Angels board member, believes Anthropic's upcoming IPO could serve as a catalyst for the tech sector following recent AI-driven selloffs.
Peck suggests that after Alphabet's record selloff, which erased roughly $500 billion on Oct. 29, investors are looking to Anthropic's IPO as a key valuation marker in the AI space. Large investors reportedly want Anthropic priced at the low end of a $1.5 trillion to $2 trillion range, which could become a yardstick for hyperscalers and cloud giants worth $2 trillion to $4 trillion.
Valuation Debate
Peck noted on CNBC's 'Squawk on the Street' that tech sentiment has become more cautious compared to six months ago, attributing Alphabet's slide to weak AI monetization, Intel's to softer PC demand, and Apple's to margin pressure. Despite Anthropic reporting impressive net revenue retention of about 900%, PitchBook's Harrison Rolfes expects this figure to shrink rapidly from a small base.
I think the valuation numbers make sense based on the back of the envelope, math you've seen me do.
Historical Context
University of Florida's Jay Ritter pointed out that historically, only 14 of 4,110 IPOs from 1980 to 2024 sold above 40 times trailing sales, with buyers of those 14 trailing the broader market by an average 15.4% within three years. At $1.5 trillion, Anthropic would trade near 43 times trailing sales, while its compute costs outpaced revenue in Q3, rising 77% against 47% growth.
Future Implications
With OpenAI, which Peck expects to list in 2027, already cutting its funding target to $20 billion from $30 billion, Anthropic's final price may set a reference point for subsequent AI listings. The company's S-1 registration statement reveals significantly higher net revenue retention than enterprise software peers Palantir (157%) and Snowflake (126%), though analysts question the sustainability of these metrics.
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