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> It’s an impossible war and all these investors are throwing their money into a bottomless insatiable pit of money. Anthropic went from zero to $14 billion in
by alwillis 8mo ago
> It’s an impossible war and all these investors are throwing their money into a bottomless insatiable pit of money.
Anthropic went from zero to $14 billion in revenue in less than 3 years, growing at 10x per year.
That's what they're investing in.
Also Anthropic seems laser-focused, unlike some of their competitors who are throwing stuff against the wall to see what sticks.
- Insanity 8mo agoRevenue, but what about profit? Google can be cash positive but I’m not sure Anthropic can be the same.
- 2sdd 8mo agoAlso the switching cost. If its negligible theres no reason for Anthropic to be considered a going-concern in the long term. So its valuation makes no sense from a DCF basis unless you are expecting a liquidation in future. But even then, the liquidation value still doesn't justify its valuation today.
- alwillis 8mo agoWhat about it? It took Twitter 10 years before it was profitable [1]. I'd guess that Anthropic will be one of the companies left standing when it's all said and done, assuming nothing catastrophic happens. [1]: https://en.wikipedia.org/wiki/Twitter,_Inc.#Funding https://en.wikipedia.org/wiki/Twitter,_Inc.#Funding
- avisser 8mo agoI did the math. Twitter was down $1.3 billion over 10 years. Anthropic lost $5.2 billion last year. So they are 40x better at spending investor money than Twitter. Hard to call Twitter the archetype for Anthropic.