Michael Burry says neither SpaceX nor Anthropic is worth $1T (www.businessinsider.com)

Investor Michael Burry has expressed skepticism regarding the valuations of both SpaceX and Anthropic, suggesting that neither company is truly worth the figures being tossed around. In a recent discussion on his Substack, Burry criticized SpaceX’s IPO filing, claiming its projected valuation of up to $2 trillion is unsupported by its financials, which reported $18.7 billion in revenue but a net loss of $4.9 billion last year. He posited that any increases in stock price would be driven by hype rather than intrinsic value. Burry also questioned Anthropic's nearly $1 trillion valuation following its latest funding round, arguing that the company's heavy investment in AI model development is unsustainable as computing power is expected to become commoditized. He warned that the current demand for AI infrastructure might be a "false demand signal," leading to overbuilding that won't be justified in the near future. Burry’s critical stance reflects a broader caution in the investment community about the rapid escalation of valuations in the AI sector, emphasizing the need for more sustainable business models in the face of an evolving tech landscape.