Popular VC Bill Gurley on Anthropic and OpenAI: The way these companies are run is scary, as they are …

Benchmark general partner Bill Gurley is scared of all the cash burning happening around by Artificial Intelligence (AI) companies. An early investor in Uber, Benchmark’s Gurley played a key role in the exit of the then-Uber CEO Travis Kalanick in 2017. Gurley said that Uber’s annual burn rate of $2 billion during his involvement was “high anxiety” as he pointed to the much higher numbers from today’s technology companies. Gurley is seen as a heavyweight player in Silicon Valley after decades of making bold bets on emerging tech companies. He is known to have seen enough tech cycles in his venture capital career to clearly understand and tell that nothing goes up and to the right forever.

In an interview on CNBC’s Money Movers, Gurley said that the massive AI infrastructure spending frightens him. And what scares him more is massive Capital Expenditure (CE) by companies that are still to start making profits.