Anthropic Faces Critical Challenges Ahead of High-Stakes IPO Valued Near $800B

Anthropic is facing a critical juncture, with a wave of challenges converging just as the company prepares for a potential initial public offering (IPO) that could value it at nearly $800 billion.

The AI innovator, whose revenue has tripled to $30 billion in 2024 thanks to its widely adopted coding tools, has never been more valuable—or more vulnerable. Chief rival OpenAI is capitalizing on Anthropic’s recent missteps, actively courting frustrated developers and positioning itself as the more stable choice ahead of their own competing IPOs.

Anthropic’s Recent Struggles Span Core Business Areas

Over the past two months, Anthropic has encountered issues across multiple facets of its operations, including product quality, pricing, security, and infrastructure capacity. These challenges are beginning to compound, raising concerns about the company’s ability to maintain its momentum.

1. Model Performance Backlash and Mixed Reactions

Perceived declines in the performance of Opus 4.6 sparked initial skepticism, with some developers accusing Anthropic of quietly downgrading its flagship model. While the newer Opus 4.7 delivered significant benchmark improvements, its reception has been mixed. Users have reported higher token costs, bugs, and inconsistent performance, further eroding confidence.

2. Infrastructure Strain: Capacity Crunch and Outages

Surging demand is pushing Anthropic’s computing resources to their limits. Users are encountering tighter usage limits and periodic service disruptions—red flags for enterprises that have come to rely on Claude for critical operations.

3. Security Incidents Raise Concerns

A recent software update inadvertently exposed internal Claude Code files, providing outsiders with access to Anthropic’s most valuable product and raising serious questions about its internal safeguards.

Adding to the concerns, reports indicate that a small group of unauthorized users accessed Mythos—Anthropic’s most powerful model, which has been withheld due to safety concerns regarding its offensive cyber capabilities. The company is now investigating these claims.

4. Pricing and Product Accessibility Confusion

On Tuesday, some users discovered that Claude Code was no longer available on the $20/month Pro plan—a move that could significantly impact Anthropic’s most popular and accessible product tier. Facing a backlash, Anthropic clarified that the change was part of a limited test affecting only a small subset of users. However, this explanation did little to alleviate fears of broader pricing restructuring.

Despite Challenges, Business Remains Strong

Even as Anthropic shifts enterprise clients toward usage-based pricing models, demand has not waned—and revenue continues to climb. The company’s stance against Pentagon contracts has also bolstered its reputation among AI safety advocates and critics of the Trump administration, driving a surge in usage that briefly propelled Claude to the top of the U.S. App Store.

"We've seen extraordinary demand for Claude over the past several months, and our team is doing everything we can to scale quickly and responsibly. We know it hasn't always been smooth, and we're grateful to our community for the patience and feedback as we work through it."
Anthropic spokesperson

The High-Stakes Race Between Anthropic and OpenAI

The challenges facing Anthropic extend beyond isolated product issues. The company and OpenAI are locked in a fierce competition to dominate the enterprise AI market and justify their massive IPO valuations. Anthropic’s rapid ascent has been driven by cutting-edge products, developer trust, and a reputation for discipline. However, even minor missteps risk undermining the foundation of this growth.

What’s Next: OpenAI Seizes the Moment

OpenAI, no stranger to high-pressure situations in the breakneck AI race, is leveraging Anthropic’s growing pains to its advantage. A leaked memo from OpenAI’s chief revenue officer Denise—though incomplete in the original report—underscores the strategic moves OpenAI is making to attract disillusioned Anthropic users and solidify its market position ahead of its own IPO.