Comment by stevefan1999
1 day ago
Good drop. Should be less than a trillion amid current midterm fallout. The chances of more AI regulations are coming.
Colossus 1 & Colossus 2 are located on Tennessee and Mississippi, and Anthropic rents both of them earlier this year.
Now that Democrats are surely going after Trump and Elon Musk and the sidekicks, and both Tennessee and Mississippi turned blue as well, this directly impacts the way Anthropic to source cheap compute and data in the future due to uncertainty around the continuation of SpaceX data centers. And other data center buildouts are likely to be paused for things like power grid connection and environmental impacts and land purpose evaluation, the compute capacity constraints are likely going south, too.
Worse, the proposals around superintelligence is exactly what Anthropic is looking for: slow the fuck down. Now they got the killshot they long desired for, it obviously makes a dent in the capability and capacity of their AI, hence a drop in valuation. I think $800-900B is somewhere I would say okay, and $600-700B is really where it is fair, considering the long term outlook for Anthropic is looming with a greater AI massacre caused by political factors.
Wasn’t the regulation main hope to sustain the value? Otherwise open models come and eat the lunch.
This is a "not like that" situation. They wanted "AI safety" legislation guaranteeing them rent money. What they're likely getting is legislation to slow down data center buildout and make them more environmentally sane (more expensive upfront cost).
And open models are coming whether they like it or not.
Oh, and if the Dems take OpenAI and Anthropic's AI safety rhetoric at face value, nationalization and other forms of substantial government interference is on the table. A predictable outcome of irresponsible fear mongering!
Nothing ever happens. Elon and SpaceX will be fine.