Scott Galloway

Effectively, what you're doing in these companies is they're trying to push the perceived value up dramatically.

They're also raising so much capital that they can offer these products

and an incredible value.

So supposedly, Cloud Pro or Cloud Max, it costs $200 a month.

But supposedly right now, it costs them $5,000 a month for the compute and the chips to offer you that service.

So they're trying to just capture a ton of share.

These companies are growing incredibly fast, and their total adjustable market seems almost infinite, which results in just kind of what I feel would be insane valuations.

Let's talk about Anthropic.

So again, the annual revenue trajectory was 87 million in January, 2024, and it's 1 billion by 2024 and 9 billion by the end of 2025 and 30 billion by April, 2026.

So as you can see, this company

I mean, Anthropic really is a miracle of American innovation.

It was started five years ago, and if it was in Europe, it'd be one of the five most valuable companies.

The current run rate is about $40 billion ARR, according to people with knowledge of the company's financials, and the valuation was $380 billion post-Money in Series G in February, and now it's in talks to raise money.

at a $900 billion pre-money.

Internal documents project a $14 billion loss to 2026, no positive free cash flow until 2028 at the earliest.

By the way, I think that's a couple of years earlier than the projected positive free cash flow date for OpenAI.

So at a $900 million valuation and $45 million in ARR, that's roughly 20 times forward revenues compared to Walmart's one and a half.

They're just different businesses with different expectations.

I would, what's the answer here?

You know, which is a better value?