Michael Burry says Anthropic is 'betting its entire existence' on optimism, and he has no plans to own the stock - Business Insider
By Google News AI ·
Michael Burry won't be buying Anthropic stock when the AI titan goes public. "The Big Short" investor has been bearish on the Anthropic's initial public offering since it unveiled its prospectus last month, noting that its spending commitments support his bearish thesis on the AI trade. In a Substack post on Wednesday, he shared more concerns about the frontier lab's updated S-1, specifically on some of the numbers Anthropic revealed. "Not only is the company priced for optimism," Burry wrote, "it is betting its entire existence on that optimism." The amended prospectus, filed on November 2, revealed that revenue surged to $17 billion in the third quarter, but it also showed compute costs are high and will keep rising well into the future. His analysis highlighted a specific number from Anthropic's filing: the $895.4 billion that the company has committed to spending on AI compute power, chips and other types of infrastructure that it needs to run its frontier models. In Burry's view, the figure is concerning, as even bullish investors anticipate that Anthropic's revenue will reach $100 billion in the coming year, a fraction of what its expected to spend going forward. Burry said that future spending commitments would exceed bullish revenue target by roughly 12 times, and that investors haven't grasped how this could affect Anthropic's business and the wider AI trade. "The market is paying attention, but I fear the full realization of what has happened here will only be self-evident in the rear-view," he stated. "I have no plans to pursue shares of Anthropic, and I do not expect to be a shareholder anytime soon." Burry hasn't always been so critical of Anthropic. In April 2026, he described it as "eating Palantir's lunch." He also noted that he saw the market shifting…
Originally published by Google News AI
