#AnthropicSecondaryValuationHits1.2Trillion

Anthropic's valuation is another indicator of how fiercely competitive the AI market is: From GateSquare I was amazed. When I saw the $1.2 trillion valuation for the Anthropic secondary market, I thought to myself that this shows how the appetite for top AI stocks still very high. The other, perhaps more surprising thing is that existing shareholders do not really want to sell the shares making it extremely hard to get them despite this fantastic evaluation.

I do not think this is just about the success of a company, this illustrates what level of respect AI got from the investor world.

It went from being experimental tech to being a long term theme that is related to cloud computing, software companies, health care, robotics, security and the banking industry. But of course, you also need to have some realism regarding any excitement. A company can have very good technology and can still reach levels that only reflect several years of continued success. When this is the case the investor community expects these values to be reflected in future performance as well – we will have to see if they actually achieve this rapid innovation, increasing revenues, and market dominance.

The lack of shares on the market is an interesting feature too, as these are stocks and it is really hard to get access, if owners are not willing to sell shares at reasonable prices their evaluation can get crazy faster than expected.

It was seen with some other growing tech stocks too but this often comes along with volatility. What’s interesting from an investment point of view, is that money flows into all parts of the industry that are related to the A I business – from cloud computing, chip manufacturers, developers to enterprise applications – a huge growth sector, that I expect to grow over several years to come. It will be a really big one to watch if Anthropic ever lists publicly on an IPO.

Let me know: Are trillions really justifiable for this company at this point, or is there simply too much enthusiasm?

‍#AI #GateSquare