Anthropic is kicking OpenAI’s ass: Insights from the largest revenue explosion in tech history

Anthropic was literally counted out of the game last year and they've kicked OpenAI's ass over the last 90 days. Bam, you have the largest revenue explosion in the history of technology. So, you have to ask what's going on and what's the big so what? The first thing for me is that model and product capability just hit this threshold near AGI, whatever the hell you want to call it. And everybody like Altimter said, "Damn, this is so good. I have to have it. This is no longer about my IT budget. is about labor augmentation and labor replacement. Turns out that the TAM for intelligence is radically different than anything that we've seen before. And I think the best example of this, right,

this is millions of self-interested parties, consumers, enterprises, a thousand now over a million dollars. Right? It's not that there was some great go to market anthropic that all of a sudden, you know, they snuck up and blew everybody away. No, it was companies demanding the product. They're getting throttled on the product. Why? Because it's so good. It makes them better at their business. We knew intelligence was going to scale on the exponential. The question was whether revenue will scale on the exponential. And that's what we're seeing. And remember, they're doing this with only 1 and a half to two gawatts of compute. And the models are only getting better.

So I think when you look out toward the end of the year, I would not be shocked if you see Anthropic exiting this year at 80 to hundred billion in revenue. No.