America’s biggest investor Michael Burry, who predicted the 2008 US housing crash says Anthropic’s IPO filing has done nothing to ease his worries about the artificial intelligence boom, Benzinga reports. He said the developer landscape has changed a lot over roughly four months, while the S-1 largely covers the period through June 30.
In a Substack post, the “Big Short” investor said many good teardowns of the S-1 are already out, and remarked on how quickly they get done these days. But he told subscribers there is “a lot here but nothing that changes my view. Burry argued that the filing misses recent shifts in the industry. In his words, much more is going on than the document addresses.
In a post on his Substack newsletter, Burry said there were already numerous detailed analyses of Anthropic’s S-1 filing available, but added that none of the information disclosed changed his broader view of the AI market.
“There is a lot here but nothing that changes my view,” Burry wrote, according to the report. Burry believes AI models are increasingly being used more efficiently by customers, reducing the number of tokens and computing resources needed for certain tasks, according to the report. “Models are already being used more efficiently and that trend will continue, to the detriment of their growth rate,” he said. In a post shared by on social media platform X (formerly known as Twitter) Burry said that markets should ‘tank hard’ in order to stop the planned initial pubic offerings (IPOs) of OpenAI and Anthropic, describing such an outcome as being ‘for the benefit of humanity’. The financial losses would be “the least of the damage they do.”, according to Burry.
He argued that this trend could eventually become a headwind for revenue growth across the sector. He later expanded on his criticism, claiming the two companies would ‘suck up’ and then destroy ‘TRILLIONS of dollars of capital’.
Earlier this month, Burry warned that public listings by AI giants Sam Altman-led OpenAI and Anthropic could lead to massive capital destruction, arguing that the companies should be prevented from going public.