Anthropic revenue is surging, so why is the AI sector plunging?

Because the market is undergoing a “dramatic purge of valuations and funding channels.”
The numerator (application revenue) is strong, but the denominator (U.S. Treasury yields and the cost of highly leveraged financing) is soaring.
The asset-heavy intermediaries that previously relied on borrowed money to build computing capacity and lease GPUs are seeing their bubbles burst. The intense struggle between capital expenditures and ROI is driving a valuation pullback at the infrastructure layer.
Looking ahead: The AI narrative has not collapsed. It is shifting from “blindly piling on computing power” to “real-world application deployment.”
After highly leveraged infrastructure is purged, application-layer businesses and AI-native software with genuine cash flow and highly sticky paying users will undergo a true reshaping of value!