Anthropic’s record IPO faces some big questions

The first is commoditization: “the degree of differentiation among advanced AI models may narrow,” the company warns.

The San Francisco-based firm also says “substantially all of our revenue” comes from its AI tools. Unlike Google or Meta, it has no advertising empire to fall back on if business takes a hit, and no cloud business like Microsoft’s or SpaceX’s.

Investors have already grown nervous. In mid-a valuation of $2 trillion.August, shareholders were floating a valuation of $2 trillion.