Anthropic's IPO filing is the talk of Wall Street. Michael Burry says it hasn't eased his worries about the AI boom.
Michael Burry of "The Big Short" fame pointed to Anthropic's slowing revenue growth and pressure on pricing and usage of AI models.
Investor Michael Burry, known for his bearish stance on the AI boom, has expressed his disappointment with Anthropic's IPO filing. The AI startup's revenue growth has slowed, and pricing and usage pressures have mounted, according to Burry's analysis on his Substack platform. Anthropic's IPO filing, which could be the biggest in history, has captured Wall Street's attention, but Burry believes the information provided in the prospectus does not change his view on the company.
He highlighted a slowdown in revenue growth, citing Anthropic's claim that third-quarter revenue was 86 times the $197 million generated in the fourth quarter of 2024. However, Burry noted that Anthropic's revenue growth has slowed from 144% in the first to the second quarter of the year to around 46% in the second to third quarter.
Burry also raised concerns about Anthropic's debt financing, challenges in installing new graphics chips, concerns over memory chip prices, the rise of small language models, and the fundamental issues in the AI industry deals.
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