Anthropic Is ‘Betting Its Entire Existence On Optimism’: Michael Burry Flags Risks After AI Firm’s Updated S-1, Says Won’t Pursue IPO Shares - Yahoo Finance
By Google News AI ·
Burry said Anthropic's total commitments run from $1.05 trillion to $1.07 trillion, versus the disclosed figure of $895.4 billion.
Anthropic would need 11.6% sequential monthly revenue growth through 2027, and even higher if it wants to achieve a 20% margin.
Last month, Anthropic published an amended S-1 filing which included its third-quarter performance.
"The Big Short" investor and AI critic Michael Burry said that Anthropic would have to show "supernormal" growth to cover its contractual commitments in the coming years and that he would not pursue an allocation in the upcoming initial public offering, nor would he become a shareholder later.
Burry said in a new blog post, Anthropic's total commitments actually come to $1.05 trillion to $1.07 trillion versus the disclosed figure of $895.4 billion, which excludes certain contracts tied to AMD, Google, and SpaceX.
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Based on his math, Burry said the AI startup would have to cover projected payment commitments – $101 billion in 2027, $112 billion in 2028, $127 billion in 2029 – and Anthropic would need 11.6% sequential monthly revenue growth through 2027.
And to achieve a 20% GAAP margin, it should be at 16.1% sequential monthly growth.
"Anthropic published a number. $895.4 billion. Which may even amount to nearly $1.2 trillion in commitments just from this one company that the optimists say will do $100 billion in revenue the next 12 months," Burry wrote.
"That kind of growth is mandatory. Not only is the company priced for optimism, it is betting its entire existence on that optimism, that kind of supranormal growth."
Anthropic's new S-1 filing, which includes its third-quarter…
Originally published by Google News AI
