The Anthropic Feedback Loop: Cost of Capital Diversions and Delusions...

The author presents a self-critique of a recent valuation of Anthropic, addressing reader pushback regarding the cost of capital, target revenues, governance, and dilution risks. The author argues that target revenues and company governance are more critical valuation drivers than the cost of capital, and contends that a cost of equity around 9.74 percent aligns with historical and market-implied returns. Open article →