Anthropic CEO Warns Aggressive AI Spending Could Lead to Bankruptcy

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Anthropic CEO Dario Amodei says the company is taking a more cautious approach to investing in AI infrastructure compared to hyperscalers like Amazon, Alphabet, and Meta. Amodei warns that if Anthropic's projections for 10x annual revenue growth are off by even a year, the company could go bankrupt from overspending on data centers. He criticizes rivals for "YOLOing" on AI spending without fully understanding the risks.

Why it matters

Anthropic's more measured approach to AI investment highlights the high-stakes gamble facing companies betting big on the transformative potential of artificial intelligence. Amodei's comments underscore the financial risks and uncertainty around the timing of when AI breakthroughs will translate into substantial revenue.

The details

Amodei says Anthropic believes it could achieve a technical milestone of having an "AI data center of geniuses" in 1-2 years. However, he is less certain about when the trillions in revenue will start rolling in, estimating it could take 1-5 years. Amodei warns that if Anthropic's 10x annual revenue growth projection is off by even a year, or if the growth rate is 5x instead of 10x, the company could go bankrupt from overspending on data centers. In contrast, top tech giants like Amazon, Alphabet, and Meta are planning to spend hundreds of billions on AI infrastructure.

• Anthropic said it will spend $50 billion on AI infrastructure in the U.S., starting with data centers in Texas and New York.
• Amodei believes Anthropic could achieve a technical milestone of having an "AI data center of geniuses" in 1-2 years.

What they’re saying

What’s next

Anthropic plans to continue investing in AI infrastructure, with a focus on building data centers in Texas and New York.