Dan Ives Says Anthropic Could Eventually Be Worth $3 Trillion Despite Its $80.7 Billion Loss — Insists AI…
Dan Ives, a partner and senior managing director at Yorkville Ives, rejected claims that Anthropic's planned $1.5 trillion initial public offering (IPO) could mark the end of the AI investment boom. He said this despite the company's huge $80.7 billion loss in the first half of the year and growing concerns about how much money is being spent on AI.
Ives Sees Strong Appetite Despite Massive Losses
"It's the third inning," Ives said in a CNBC interview from Abu Dhabi. He estimated that the AI revolution is only about 15% complete. "We're going to go through these white-knuckle moments. This is not a top. This is not a bubble."
Anthropic's IPO filing showed that its net loss in the first half of the year grew to $80.7 billion. About $72 billion of that amount came from accounting charges linked to financing deals that can be converted into other forms of investment. These charges did not involve cash payments. Revenue reached $16.3 billion, while operating losses fell to $693 million. Revenue in the second quarter jumped 1,368% compared with the same quarter a year earlier.
Ives expects investors to show early interest at a company valuation of $1.5 trillion to $1.7 trillion, below earlier expectations of nearly $2 trillion. He said Anthropic could eventually be worth $2 trillion to $3 trillion, depending on how well it performs. However, he stressed that investors would closely examine how quickly the company is growing and how much future business it has lined up.
Anthropic IPO Could Reassure AI Investors
Ives said investors should be careful about buying Anthropic shares at a $2 trillion valuation, but that a $1.5 trillion valuation could be attractive. "I think at two trillion, you're not an assertive buyer," he said. He expects more investors to want to buy shares at a lower valuation, adding, "I'd definitely be a buyer coming out."
His comments support his earlier prediction that Anthropic's stock market debut could help the wider technology sector.
Ives also said investors are going through a "white knuckle period" as concerns grow about CoreWeave's growing debt problems. Even so, he maintained that Anthropic remains a key part of the wider AI investment opportunity.
AI Safety Risks Complicate Valuation Debate
Anthropic's IPO filing describes major risks, including people misusing its AI models, weaknesses in cybersecurity and AI systems possibly behaving in ways that manipulate people. The company also faces large commitments to build the infrastructure it needs as it races to increase its computing power.
Ives described some of these risks as "almost out of a sci-fi movie," adding, "The risks are real. You can't just diminish them and kind of say that they're not a big deal." He also questioned Anthropic's focus on safety as it competes with Meta Platforms Inc. (NASDAQ:META) and OpenAI. "They could talk safety, but if they take their foot off the pedal," rivals would keep making progress, he argued.
Ives said Anthropic's plan to go public creates tension with CEO Dario Amodei's calls for greater caution and stronger safety rules when developing the most advanced AI systems.
"I think for investors, it sends mixed signals," he said. He argued that Anthropic knows it must bring its technology to market and make money as competition grows stronger. "It all comes down to monetization with guardrails," Ives added. He stressed that investors must weigh the industry's huge opportunities against the risks of increasingly powerful AI systems.
The debate comes amid wider concerns about how AI infrastructure is financed. But Ives remains convinced that the industry has much more room to grow. "This is what I view as kind of just the next stage of the modernization phase of AI revolution taking place. But it is not the top in my opinion," he said.
Photo courtesy: Shutterstock