Michael Burry Questions Anthropic IPO Amid AI Growth Concerns

Burry highlighted a deceleration in revenue, noting that while Anthropic’s growth surged by 144% between the first and second quarters, it slowed to 46% in the third quarter. He argued that the filing, which primarily covers data through June 30, fails to capture the rapid evolution of the developer market over the last four months. Among his primary concerns are the commoditization of tokens and the trend toward efficiency, which he believes will naturally dampen the growth rates of large language models like Claude.

Beyond specific company metrics, Burry pointed to systemic vulnerabilities in the AI boom, including the heavy debt financing backing many deals and the inevitable price correction in memory chips as shortages ease. He also underscored the rise of small language models as a threat to the massive computing power currently required by industry giants. While Anthropic has yet to respond to these critiques, Burry maintains that the sector is prone to overinvestment, aggressive accounting, and unsustainable circular financing.