Company valuations don’t just take into account the current state, but also projections of the future state. Anthropic has a reputation of consistently being ri

Company valuations don’t just take into account the current state, but also projections of the future state. Anthropic has a reputation of consistently being right on the cutting edge. Their products continue to get better and better and gain more and more traction across more and more use cases, even in the face of competition. This valuation simply reflects that investors believe these trends will continue. Another way of thinking about this is that this is increasingly an industry where creating one good model just isn’t enough. Just as important, if not more important, is the ability of the company to repeatedly and consistently match or exceed everyone else while responding in a very smart and nimble manner to constantly evolving market pressures. Regarding DeepSeek specifically, it’s a fantastic open model, but the incumbents have already surpassed it in almost every way, and are continuing to blaze ahead. Frankly, it’s old news already as far as the absolute frontier and pinnacle are concerned. And that’s where all the money is.