XN plans to buy more Anthropic shares at IPO as AI sell-off tests valuation

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 IPO despite the AI stock sell-off, the Financial Times reported. Public investors, meanwhile, are questioning its proposed $1.5 trillion valuation.

A $5.3 billion bet, and a plan to add to it

In a Thursday letter, Kapadia praised Anthropic’s financial discipline and called it a future “category-defining” company.

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

XN aims to raise its stake once Anthropic goes public, as the company has yet to buy more shares in the IPO. It will take considerable time before selling the existing assets. As stated in Kapadia’s letter, the investors can sell only 8% of their assets during the first quarter after listing.

Public buyers want a discount

XN’s confidence is not shared by some prospective IPO investors. Four people familiar with investor discussions told Reuters that Anthropic’s 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.

A further point of concern is the sales performance of Anthropic recently. The company did not state its revenue figure for October in its amended filing. The investors would like to know this number in order to evaluate whether growth has bounced back following a recent slowdown. Earlier expectations put Anthropic’s IPO valuation at $2 trillion.

A lower valuation may also have repercussions for the wider AI industry. In fact, Barclays strategist Julien Lafargue has cautioned that reduced funding for IPOs could mean that there is less capital available for infrastructure investment and put additional pressure on valuations across the industry.

What the filing shows

Anthropic’s SEC filing helps explain why investors are cautious. 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.

Most of the net loss came from noncash changes in the value of convertible financial instruments. Anthropic’s operating loss was considerably smaller, at $567 million.

The bigger 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 their access to bond markets. However, borrowing would add financial pressure if AI returns fall short.

Private money still likes AI, with caveats

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

However, that optimism comes with reservations. Some 56% anticipated a meaningful slowdown in AI infrastructure spending within six to twelve months.

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

From funding doubts to Asian chip floors

Concerns about financing have also unsettled public markets. Barclays strategist Julien 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 soon spread to Asia. In Taiwan, TSMC shares hit their daily downward price limit at Friday’s open, Reuters reported.

The BIS has also warned that major cloud companies’ AI investment commitments are outpacing earnings and free cash flow.

Against this 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.