Anthropic AI Lost $80 Billion in 2026 - IPO Failing

Eli the Computer Guy (0:00)

Lordy, lordy, lordy, lordy. I can't even make up how stupid the AI industry is right now, right? If I wanted to lie about the frontier labs and try to slander their names, the problem that I'm having at this point in time is I am not intelligent enough to come up with something so crazy that they haven't already done it. And then put it out as a press release.

So anyways, as I've said many times before, the AI technology stack is pretty darn cool. Vector databases are amazing. But the whole insanity going on right now with OpenAI and Anthropic and the rest of the idiocy that is just completely and utterly dumb. As I've talked about before, things, technologies, or products like SQLite, right? SQLite is the number one most used database engine in the entire world. It allows so many things to be able to do what you're used to doing, right? SQLite is in like every single phone that's ever been produced. It gives you a record store and all these different types of IOT devices. It is absolutely amazing. But if I told you it should be worth a trillion dollars, you'd call me a damn moron, right? If I said a vector database should be worth a trillion dollars, you'd call me a moron. If I told you neural networks should be worth a trillion dollars, you would call me a moron. But then Anthropic can come out and say that they should be valued at two trillion dollars, and everybody's like, yeah, of course, of course. That, that makes complete sense. The technology, the technology, that's not actually worth very much money. But Anthropic itself is worth two trillion. Open AI is worth 1.5 trillion. It is all just utterly insane. And so the latest thing we have coming out from Reuters, I think this is from the IPO perspectives again. So basically, Anthropic is going out. They're supposedly, and I do have to say supposedly at this point in time, they supposedly are gonna IPO in November. And to be clear, right, they said originally, said originally maybe they're gonna IPO in September. That seemed a little early. Probably they were going to IPO in October. That seemed a little bit more reasonable. And then they got pushed back to November. As I've said many times before, I don't really think that's much of much, right? There's paperwork and regulations and all kinds of stuff. Having an IPO get pushed back by something like 30 days, I really don't think that that's a big issue. But I do have to say, again, the taste of it. Having been in the tech industry since 1996, right? Over 30 years at this point in time, I just have to say, the taste of this IPO is wrong. There's just, I can't put my finger on it. I don't have a spreadsheet. I don't have any of that kind of crap. But I can tell you, the taste of the anthropic IPO, it just doesn't taste right. I just, I can't tell you why. It just doesn't taste right. But anyways, supposedly, and that's why I now say supposedly, supposedly, they are going to IPO in November. So they're going out to all the investors, to tell the investors why the investors should give them an absolute crap ton of money. Again, to be clear, they want to be valued at $2 trillion.

Remember, before the SpaceX IPO, the largest American IPO in history was Alibaba. I do believe it was about $169 billion.

$169 billion, right? SpaceX IPO at $1.7 trillion, which was 10 times the largest American IPO in history. And that was just in the summer. That was just a few months ago. The largest IPO in history was Saudi Aramco. But again, to be clear, Saudi Aramco, that's its own little war. I mean, that's basically, that's an IPO for all of the oil production for an entire country. Again, that's not exactly the same thing as Anthropic or Uber or whatever else. I think that came in as like 1.7 trillion dollars in the past. So anyways, if you look at it now, if you look at it now with Anthropic, Anthropic literally wants the IPO as the most valuable IPO ever. Not just in America, not just 13X, what the largest American IPO was previously before SpaceX. Not simply, whatever. They want to be the largest IPO ever in history. And the funny part is, we're seeing more and more of their paperwork.

It is giving me PTSD flashbacks to WeWork. Remember when WeWork was going to IPO for $45 billion? And then it didn't. I remember that.

Remember somebody, I don't know who it was, who was screaming into a camera, talking about how stupid the WeWork IPO was. And all the little viewers, all the little viewers were coming, like, you don't know what you're talking about.