Big Technology's Kantrowitz: The market isn't sure what to think about AI companies

• Anthropic is expected to disclose new revenue numbers to investors today, ahead of a potential IPO in November.
• The company's projected $4 billion in 2025 revenue is accompanied by $518 billion in uncancelable compute and infrastructure obligations.
• The market is uncertain about valuing private AI companies, considering them 'belief-based' due to unproven technology and future projections, with any 'wobble' in performance potentially having broad repercussions.

The discussion focuses on Anthropic's upcoming revenue disclosure to investors ahead of its anticipated IPO, highlighting its substantial compute obligations. The market is grappling with how to value these rapidly growing but unproven AI companies, viewing them as 'belief-based' trades rather than traditional businesses with hard figures.