Michael Burry Called the AI Boom ‘Catastrophically Vulnerable’ Following Anthropic’s Filing. ANT Stock’s Valuation Is a More Immediate Risk.

Anthropic’s (ANT) push toward the public market is giving investors something new to examine beyond the excitement surrounding artificial intelligence (AI). The company behind Claude, which develops AI models and tools for tasks such as writing, coding, and business analysis, could command a valuation of $1.5 trillion to $2 trillion. That puts a substantial price tag on its ambitions before investors have their say.

Yet the prospect of owning a piece of Anthropic comes amid fresh questions about the industry’s financial foundations. Michael Burry's response to its initial public offering (IPO) filing was pointed, warning that the AI boom is “catastrophically vulnerable.” His assessment casts a shadow over what might otherwise look like another opportunity to buy into AI’s growth.

Could Anthropic’s public debut offer investors a compelling stake in the future of AI, or expose them to risks the excitement has pushed aside? Let’s look beyond the headlines.

Why Burry’s Warning Matters for ANT

Anthropic’s IPO filing reinforced Michael Burry’s concern that the AI industry’s financial and commercial relationships leave it "catastrophically vulnerable at the slightest slowdown in growth or a market downturn.” Burry tallied approximately $537 billion in computing and equipment commitments, with additional agreements potentially increasing that figure.

His concern extends beyond the spending itself. Amazon (AMZN) and Alphabet (GOOGL) serve as both investors and computing providers, while Microsoft (MSFT) is another major infrastructure partner. Burry argues that these overlapping relationships could amplify the consequences of weaker AI growth rather than contain them within individual companies.

Burry also sees a potential downside to improving technology. More efficient AI models could reduce computing demand and pressure pricing, weakening the growth assumptions underpinning infrastructure investment.

Anthropic therefore faces risk, particularly if slowing growth and pricing pressure make its commitments harder to support. That is the vulnerability Burry identifies, not proof of an inevitable collapse. His warning puts the burden on Anthropic to demonstrate that its economics can sustain its ambitions.

Inside Anthropic’s IPO Filing

Anthropic filed for its IPO on Oct. 26, proposing a Nasdaq listing under the ticker “ANT.” Its Nov. 2 update still disclosed neither an offer price nor a fundraising target. The reported potential valuation of up to $2 trillion therefore remains an estimate, not a finalized offering term.

The updated filing put revenue at $33.2 billion for the first nine months of 2026, approximately 13 times the comparable period a year earlier. Third-quarter revenue reached $17 billion, alongside a $23.3 billion net loss. 

Across the nine months, losses totaled $104 billion, including a $94 billion accounting adjustment related to financing agreements. The reported loss therefore should not be read as an equivalent cash outflow.

The earlier filing provides a separate snapshot of Anthropic’s finances. During the first half, the AI company generated $3.9 billion in operating cash flow and held $131.7 billion in cash and short-term investments as of June 30. 

Its updated computing and infrastructure commitments totaled $895.4 billion, including $70 billion due within 12 months. Although the figures reflect different reporting dates, they show the scale of Anthropic’s liquidity and future obligations.

Beyond its finances, the filing highlights customer concentration and founder control. Five customers represented approximately 25% of revenue, while seven founders retain 50.1% of voting power through a special Class F share. Public shareholders would therefore gain exposure to Anthropic’s business while its founders retain majority voting control.

Where Do Analysts Stand on Anthropic?

Anthropic is growing fast, but Barchart contributors Jim Osman and Rob Isbitts say there is more to this IPO than rising sales.

Writing on Oct. 26, Osman said he would wait to see the IPO price range before deciding whether to buy. He wants to know how much profit Anthropic can keep after paying its computing bills and how much more money it will need. Osman would rather wait for clearer answers than rush to buy at the start.

Isbitts focused on competition in his Oct. 31 commentary. Google supplies Anthropic with computing services but also competes with it. Meanwhile, Meta Platforms (META), with freely available models, could make it harder for Anthropic to charge as much for Claude. He argues that a $1.5 trillion to $2 trillion valuation would require strong profit margins, which rivals could make harder to achieve.

These are two individual views, not a Wall Street consensus. Osman could buy at the right price, while Isbitts is more concerned about whether Anthropic can earn enough to justify that price.

Conclusion

ANT faces risk, but Burry’s warning does not mean Anthropic is headed for failure. The concern is whether its growth can justify both enormous spending commitments and an ambitious valuation. The more likely challenge is pressure on profitability as competition and computing costs test the business. That makes the eventual IPO price especially important. Anthropic could become a successful company without rewarding buyers who pay too much. Waiting for clearer pricing and stronger economics looks more sensible than chasing the excitement.

On the date of publication, Ebube Jones did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.