"It could also be seen as reflecting a collective insanity in the world of finance. While the company boasted impressive growth and claimed its run-rate revenue has increased from $1 billion to $5 billion so far in 2025 alone, $13 billion is still a significant bet to place on a technology more notable for burning cash rather than generating profits."
"It wasn't only the dotcom boom and bust. The IT world has worked to repair its reputation after the Y2K bug did not result in the catastrophic consequences forecast. Techies would argue that the billions spent dealing with the bug were why nothing bad happened. To the general public, though, the panic was unjustified, and the tech sector was subsequently regarded with suspicion for several years."
Anthropic raised $13 billion in a Series F round led by ICONIQ and Fidelity Management, valuing the company at $183 billion. The company reported run-rate revenue rising from $1 billion to $5 billion in 2025. Massive investments in AI parallel earlier tech manias such as the dotcom bubble and the Y2K panic, which damaged public trust in the sector despite preventive spending. OpenAI and major firms like Microsoft and Google have also invested billions, yet significant financial returns remain limited while layoffs have occurred. Concerns persist about overbuilding datacenters and whether AI investments are sustainable.
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