Anthropic's cooling growth stokes AI jitters ahead of IPO

Anthropic, the AI startup behind the Claude chatbot, is seeing its revenue growth cool just as it prepares for a public debut, according to a new report. The slowdown is the latest red flag for an AI trade that has already been rattled by concerns about sky-high valuations and the durability of demand. The report, from MarketWatch, describes the development as 'further stoking investors' AI jitters,' a warning sign that even the sector's most celebrated names are not immune to gravity.

The stakes are significant. Anthropic has been one of the most richly valued private companies in the AI boom, with billions of dollars in backing from Amazon and Google. Its Claude models are widely used by businesses, and the company has been seen as a potential IPO candidate that could test the market's appetite for pure-play AI. If its growth is decelerating now, it raises uncomfortable questions about whether the entire sector's expectations have run ahead of what the market can sustain.

For context, Anthropic was founded in 2021 by former OpenAI researchers, including Dario Amodei, with a mission focused on AI safety. The company has positioned itself as a more cautious alternative to OpenAI, emphasizing responsible development.