Investors reevaluate AI trade after Anthropic valuation

The author argues that the AI market is experiencing a big market delusion driven by overconfidence and overinvestment, leading to diverging interests among AI suppliers, builders, and product firms. While suppliers have captured immediate revenue from infrastructure buildouts, builders face depressed cash flows, and nascent product firms grapple with high costs and future compute commitments. The author suggests that as the market matures and corrects, these competing economic agendas will cause valuations to differentiate significantly. Open article →