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Anthropic raises $65B in Series H funding at $965B post-money valuation

anthropic.com

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Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#341

Post by Nevermark »

sandeepkd wrote: post #283
c0rruptbytes wrote: post #248

Earlier quoted context omitted.

i would assume investors giving billions of dollars have done their due diligence and not base it off vibes...

I seriously doubt that anyone is doing much of a due diligence here. They are either counting on others to do it and just follow along OR investing some more money to keep this thing alive enough to go through the IPO. ARR seems like a interesting concept which hides away the concrete details and is counting on a futuristic possible commitment especially for companies at this early stages. The crucial detail is proba…

> ARR seems like a interesting concept

Yes, it is a meaningful financial measure of actual progress, exactly where progress is most needed for a new company.

> which hides away the concrete details

A normal metric isn't a magic trick. It's just the number it is.

> The crucial detail is probably the money being spent

Accelerating (not just fast) revenue growth at an astounding rate, with absolute numbers that are enormous for a new company, bonkers for a 2500 employee startup [0], is the crucial "detail".

There are lots of companies with deep pockets and compute, making great AI efforts with teams of smart people, that would love to be doing, but are not doing, what Anthropic is doing and doing well. That might be the second crucial detail.

[0] https://en.wikipedia.org/wiki/Anthropic

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#342

Post by riffraff »

256BitChris wrote: post #309
vmbm wrote: post #296

Earlier quoted context omitted.

Yeah, I think it is pretty obvious at this point that users have gotten over their skis a bit on the fixed rate plans. I suspect a lot of folks were playing around with agentic workflows on a $10-200/month plan and then started implementing them at their companies under enterprise accounts not realizing that API based billing would result in easily 10-100x the costs. Running hundreds of agents 24/7 is all fun and gam…

GitHub doesn't have access to its own models so it has to pay the prices of the model it uses. People confuse price with cost all the time. The price of Opus has dropped from $75/1M output tokens to $25. That's the price. The cost is much lower and according to Dario, about a month ago, they had about a 73% margin. I don't understand how anyone would use GitHub copilot...it's basically running a custom harness and us…

> according to Dario, about a month ago, they had about a 73% margin.

Do you have a source for this? I missed this and it does not match my impression.

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#343

Post by e9 »

xyzzyz wrote: post #249
Zafira wrote: post #238

Earlier quoted context omitted.

Personally, I’m just exhausted. They are not obligated to be truthful here, so the entire thing is interpreted based on vibes. If you are an AI booster, this is proof that the demand is there; if you aren’t, you’re baffled at where these numbers are coming from.

How are they “not obligated to be truthful”? Lying to investors is literally a crime.

Private companies are not obligated to report GAAP numbers which means they can creatively twist numbers while still be truthful until they go public

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#344

Post by zeafoamrun »

parliament32 wrote: post #216
Lionga wrote: post #15

Boys we got more subsidy for Claude Code Plans! Let the VC financed spending of 1000$ of datacenter cost for 200$ sales price continue!

I miss when my DoorDash was still subsidized.

2010's: VC subsidized burrito delivery 2020's: VC subsidized tokens

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#345

Post by reilly3000 »

Zafira wrote: post #238
mgfist wrote: post #193

Earlier quoted context omitted.

Pretty unfathomable growth. I'm pretty sure I listened to Dario saying something along the lines of keeping Anthropic on track for 10x ARR growth (in December) and thinking that that was a bonkers idea for a $9B run-rate company, and now it's looking like that might be an underestimate ...

Personally, I’m just exhausted. They are not obligated to be truthful here, so the entire thing is interpreted based on vibes. If you are an AI booster, this is proof that the demand is there; if you aren’t, you’re baffled at where these numbers are coming from.

I think the level of panic in CFO offices every where about AI cost explosion directionally validates that the spending is real.

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#348

Post by mitjam »

vidarh wrote: post #219
icedchai wrote: post #169

Earlier quoted context omitted.

With open models, perhaps. But $100/week isn't going to get you 24/7 use of Claude Sonnet.

$100/week will get you both a higher tier of Claude and significantly more tokens with GLM5.1 or Kimi, both of which are competitive in a decent harness (for Kimi that means their own CLI - it works well in that, but has a lot of quirks that requires special treatment). Just slightly more will get you all three.

Enterprise accounts pay per token.

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#349

Post by SatvikBeri »

riffraff wrote: post #342
256BitChris wrote: post #309

Earlier quoted context omitted.

GitHub doesn't have access to its own models so it has to pay the prices of the model it uses. People confuse price with cost all the time. The price of Opus has dropped from $75/1M output tokens to $25. That's the price. The cost is much lower and according to Dario, about a month ago, they had about a 73% margin. I don't understand how anyone would use GitHub copilot...it's basically running a custom harness and us…

> according to Dario, about a month ago, they had about a 73% margin. Do you have a source for this? I missed this and it does not match my impression.

Not OP, but Dario said on Dwarkesh's podcast 3 months ago that their gross margins are "significantly higher than 50%"

Re: Anthropic raises $65B in Series H funding at $965B post-money valuation

#350

Post by sandeepkd »

Nevermark wrote: post #341
sandeepkd wrote: post #283

Earlier quoted context omitted.

I seriously doubt that anyone is doing much of a due diligence here. They are either counting on others to do it and just follow along OR investing some more money to keep this thing alive enough to go through the IPO. ARR seems like a interesting concept which hides away the concrete details and is counting on a futuristic possible commitment especially for companies at this early stages. The crucial detail is proba…

> ARR seems like a interesting concept Yes, it is a meaningful financial measure of actual progress, exactly where progress is most needed for a new company. > which hides away the concrete details A normal metric isn't a magic trick. It's just the number it is. > The crucial detail is probably the money being spent Accelerating (not just fast) revenue growth at an astounding rate, with absolute numbers that are enor…

> A normal metric isn't a magic trick. It's just the number it is.

ARR as a number for steady business or public company is much simpler, ARR for companies at this early stage fueled by the motivation for IPO is more than just a number. Its an attempt to convince the market for a certain outcome without revealing the books

> Accelerating (not just fast) revenue growth at an astounding rate

This acceleration is fueled by somewhat artificial demand (AI mandates by executives across the board, still figuring out the realistic use cases) and subsidized pricing. The expenses matter cause they are the ones which are going to dictate if the business is sustainable or not.

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