One signal

Financial adviser Nigel Green has called Anthropic’s reported $2tn IPO valuation “nuts”, arguing public investors would carry the risk if the company’s growth slows while its spending commitments remain huge. Sharecafe reports that Anthropic is targeting a Nasdaq listing, but the valuation is an expectation, not a confirmed IPO price.

Sharecafe says Anthropic’s filing lists at least $518bn in cloud, computing and infrastructure commitments over a decade. Green argues that investors should ask when rapid revenue growth can translate into cash profit after those costs. That is his opinion, not a settled verdict on the company’s value. The fresh angle is who carries the risk if the spending outruns the business: a question for prospective investors, not just another round of IPO arithmetic.

Discuss: Should public investors accept a sky-high valuation for an AI company with enormous compute commitments, or wait for clearer evidence those costs can produce cash profits?

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