Investor Michael Burry has criticized the valuation of AI firm Anthropic, labeling it a bubble. He noted that the company's current valuation could theoretically purchase 78 profitable S&P 500 firms, including brands like Domino’s, Clorox, and lululemon. Burry compared this to the 1990s record set by UPS, which had a pre-IPO valuation of $119 billion.
Anthropic, established in 2021, reached a valuation of $965 billion during a private funding round in May. This round was led by Altimeter Capital, Dragoneer, Greenoaks, and Sequoia Capital. Prospective investors currently estimate the company's fair value between $1,8 trillion and $2 trillion as the firm prepares for an initial public offering.
Financial filings indicate that Anthropic reported a net loss of $42 billion for 2025, though much of this was attributed to accounting charges. The company recorded $11,5 billion in revenue for the second quarter of 2026 and plans to invest $518 billion in cloud and infrastructure over the coming years. The IPO is targeted to occur before Thanksgiving.
