Burry questions – Michael Burry, known for “The Big Short,” questioned whether SpaceX and Anthropic can justify mega-valuations after SpaceX filed an IPO prospectus showing major losses and Anthropic raised funds at a $965 billion valuation.
Michael Burry didn’t mince words when he looked at the numbers behind two of Silicon Valley’s biggest bets. In a subscriber chat on Saturday, the investor behind “The Big Short” said he doubts SpaceX and Anthropic are worth anywhere near the $1 trillion-plus figures being floated for them.
“Any move up will be on hype and technicals,” Burry wrote about SpaceX stock. “Nothing in that S-1 suggests it is worth $1 trillion let alone $2 trillion.”
Burry’s skepticism arrives as SpaceX moves through a pivotal moment on Wall Street. SpaceX filed an IPO prospectus known as an S-1 on May 20. In that filing, it revealed that last year it made $18.7 billion in revenue and posted a net loss of $4.9 billion. The company is widely reported to be targeting a valuation of roughly $2 trillion as a public company.
Anthropic, meanwhile, is already drawing valuation gravity of its own. Last Thursday, the company announced it had raised capital at a $965 billion valuation, setting up a path for a public listing at an even higher valuation.
After that announcement, Burry tightened his critique. In a subscriber chat, he said he’s skeptical Anthropic will ever warrant that price tag. “There is no guarantee, and not even a strong likelihood, that Anthropic is long-term worth anywhere near $1 trillion,” he wrote.
His concerns go beyond price labels. Burry said Anthropic’s core business—developing cutting-edge AI models—is “far too expensive, too much brute force.” Over time, he expects computing power “will be commoditized, like internet use.”
Burry also described what he sees as a market misread. “What is happening now is a false demand signal. ” he wrote. echoing his recent warning that the “tokenmaxxing” trend won’t last. The rush to secure computing power to run AI models. he added. is “driving buildout and orders that will be too much for what is needed a few years down the road.”.
He underscored the timing mismatch with a blunt joke: before paying $1 trillion for Anthropic, he would count to 1 trillion, and “in 240,000 years I might reconsider.”
SpaceX and Anthropic did not immediately respond to requests for comment.
Burry’s standing in markets is built on dramatic calls. He shot to fame after his prescient bet against the mid-2000s housing bubble was chronicled in the book and movie “The Big Short.” After running a hedge fund. he pivoted to writing about his personal investments on Substack late last year—where. this time. he’s challenging the financial math behind two of the most prominent names looking to scale.
For investors watching valuations soar, Burry’s message is simple: hype can lift prices in the short term, but the justification—especially when revenue and losses, as well as the cost of computing, are still in play—may not arrive on schedule.
Michael Burry SpaceX Anthropic valuations IPO S-1 net loss $18.7 billion revenue $4.9 billion loss $965 billion valuation AI models computing power commoditized tokenmaxxing
So he’s saying it’s all hype? Yeah, IPOs are usually overpriced anyway.
I don’t get why everybody freaks out about the valuation like it’s real money in the bank. SpaceX lost billions?? But people still want rockets and that’s all that matters, right?
Isn’t the “Anthropic valuation” just like… made up by investors? Like it’s not worth $965B unless it actually sells that much. Also Burry always seems salty when the crowd is excited.
Burry said computing power will be commoditized like internet use, but I thought the internet is like free and unlimited now? So if it gets cheaper then how can Anthropic still be “too expensive”?? I feel like these numbers are always changing anyway, and the $1T+ thing sounds insane unless they’re counting future stuff from like government contracts or whatever. Either way, sounds like another case of people throwing darts at hype and calling it investing.