It’s a bigger issue in the US than other countries though. Not all countries value companies based on ridiculous amounts of speculation.
It’s estimated that Anthropic’s IPO will value them around $1.5 to 2 trillion even though their S-1 has 93 pages of risk factors, including that 20% of their revenue comes from their top 2 customers (and I guarantee that both would be looking into moving AI inference in-house), and they literally say that they may never be profitable:
We have a history of net losses and may not generate sufficient revenue to achieve or sustain profitability in the future
They also don’t own any infrastructure like servers or racks - it’s all rented.
Yet they’re still going to have a large amount of people purchasing stock, based purely on vibes rather than actual data.
At least the S&P 500 still has some sense. Companies can only be added to the index if they’ve been trading for at least a year, and if they’re profitable. They refused to change the rules for SpaceX, unlike Nasdaq-100 and Russell 1000.
Don’t even get me started on Nvidia. There’s no reason that a company that makes GPUs should be the most valuable company in the whole world. Actually they don’t even make the GPUs - TSMC does.
Apparently Blackstone is expecting Anthropic to receive a high junk rating, i.e. not investment-grade, after the IPO. Maybe all those risk factors actually matter.
It’s just insanity that Anthropic can openly say “we won’t ever make money and our product will destroy humanity” and they can still raise a trillion dollars in an IPO.
It’s a bigger issue in the US than other countries though. Not all countries value companies based on ridiculous amounts of speculation.
It’s estimated that Anthropic’s IPO will value them around $1.5 to 2 trillion even though their S-1 has 93 pages of risk factors, including that 20% of their revenue comes from their top 2 customers (and I guarantee that both would be looking into moving AI inference in-house), and they literally say that they may never be profitable:
They also don’t own any infrastructure like servers or racks - it’s all rented.
Yet they’re still going to have a large amount of people purchasing stock, based purely on vibes rather than actual data.
At least the S&P 500 still has some sense. Companies can only be added to the index if they’ve been trading for at least a year, and if they’re profitable. They refused to change the rules for SpaceX, unlike Nasdaq-100 and Russell 1000.
Don’t even get me started on Nvidia. There’s no reason that a company that makes GPUs should be the most valuable company in the whole world. Actually they don’t even make the GPUs - TSMC does.
Apparently Blackstone is expecting Anthropic to receive a high junk rating, i.e. not investment-grade, after the IPO. Maybe all those risk factors actually matter.
It’s just insanity that Anthropic can openly say “we won’t ever make money and our product will destroy humanity” and they can still raise a trillion dollars in an IPO.