AI giant Anthropic announced earlier this year its decision to drop a splashy initial public offering, and multiple reports have the widely anticipated market debut scheduled for before Thanksgiving. But according to a series of reports this week, the IPO, which would be the first market debut of a frontier lab purely focused on AI, is sparking less excitement and more worry than previously anticipated.

First on the list of unsettled parties is the market. Investors were allegedly let down by Anthropic’s revenue growth.

On Wednesday night, Anthropic gathered a group of investors for a closed-door presentation, the Financial Times reports. The presentation included some eye-popping financial metrics that would be a reason for celebration for the average company: Anthropic was allegedly profitable on an adjusted basis in the last quarter, and revenue was up more than $5 billion to reach $16.8 billion.

The billions in revenue growth still came in below expectations, the FT reports, as investors in attendance were unhappy that the pace of growth was slowing. Anthropic’s revenue allegedly more than doubled between the first and second quarter, dwarfing the 45% growth notched from the second to third quarter. In response to the figures, some investors are considering lowering Anthropic’s valuation by roughly half a trillion dollars, Reuters reports.

Anthropic earned these lofty financial expectations due to its position as one of the key drivers of AI hype. As a leading frontier AI lab, Anthropic reportedly plans to spend more than half a trillion over the next decade on AI infrastructure, a figure that includes multibillion-dollar deals with tech giants like Amazon, Microsoft and Google.

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