00:00How does this raise change the game, at least when it comes to this horse race?
00:04Yeah, well, will it change the game and does it adjust positioning on a horse race?
00:08The reality is like what we're talking about is Frontier Labs that are now at scale.
00:14So Anthropic is raising $30 billion.
00:16It's a $380 billion valuation, almost sort of double the valuation that it held in its last primary raise.
00:24It's probably one where you want to look at who's participating, right?
00:27And it is a who's who of institutional investors and the kind of top tier venture capital firms that you
00:36would expect when a company gets later stage and is thinking about in the near to medium term going public,
00:43right?
00:43So GIC, Singapore Sovereign Wealth Fund, CO2, then you have D.E. Shaw, Dragoneer Founders Fund, Peter Tears Founders Fund,
00:53Iconic, MGX from the Middle East, Sequoia Capital, and then the Strategics, NVIDIA and Microsoft.
01:00All of that signals, you know, deeper ties between the AI industry, but also preparing for life maybe as a
01:06public company.
01:07Ed, they're making tons and tons of money, right?
01:09Or wait, is that a stupid question?
01:11And is it more important to really just understand what Anthropic's secret sauce is here to garner such a valuation?
01:17So, you know, I find Anthropic a very interesting company to cover and speak to in recent years.
01:24Revenue run rate was about $9 billion last year.
01:27It's climbed to $14 billion.
01:28They focused very early on putting the Claude model into product form for enterprises, letting all kinds of companies across
01:38software, financial services, healthcare, do something tangibly useful.
01:43And they were less concerned about the consumer, a la ChatGPT, right?
01:48It's not really that equivalent.
01:49Now, on the capital side, clearly they're raising capital at a high level and they'll have compute costs and talent
01:56costs.
01:56But they've also done things differently to how OpenAI has done, right?
01:59So, OpenAI is trying to raise this $100 billion round, be directly involved in funding some of its own infrastructure.
02:07And Anthropic has been very closely aligned with the hyperscalers, both Amazon and with Google Cloud Platform, to basically get
02:15access to compute through credits and leasing.
02:18Have a more, I don't want to call it capital-like model because, like, there's a lot of capital that
02:22they're raising.
02:22But it's slightly different how they've gone about it.
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