Anthropic targets $1.4 trillion IPO valuation criticized as inflated

The author argues that Anthropic's targeted $1.4 trillion valuation leading up to its IPO is drastically inflated and relies on speculative discounted cash flow models spanning decades. The critique centers on five core skepticism points: the massive infrastructure and electricity costs required to scale, intense and rapid competition that threatens pricing power, potential cost-saving model substitutions by enterprises as demonstrated by Revolut, limited evidence of broader macroeconomic productivity gains, and the difficulty of capturing durable economic rents as an AI model developer. Open article →