Today's AI sector market crash is not about Democrat victory.

ANThropic is getting told to value their IPO at $1T. Down from $2T initial hopium.

In Q3, when backing in capitalized training costs, they lose 33c for every $1 of revenue.

The bigger problem for any hopium is that they bragged about a $65B ARR in July, but the full quarter (Q3) was only $16.8B in revenue, which is flat $67B ARR. Their amended S1 filing also chose to leave blank the October revenue/ARR number despite them knowing it on Nov 2 amendment date.

since Sept 22, ANT released opus, sonnet, haiku 5.5. All well received high performance/value models that are decompiling/cloning the world. This plan was supposed to juice revenue numbers because new models always get more usage, if only to test how $60 can make a gta 0.1 clone. The July ARR boasting came off Fable, sonnet, claude 5.0 release schedules, and peak tokenmaxing mantra.

ANT revenue stagnating, and $1T valuation impacts previous OpenAI related bubble pop post, in that OpenAI's fundraising at $1.25T valuation was based on it having that ratio compared to ANT at $2T. OpenAI cannot raise money at fair ~$650b because that is a down round, and previous investors get to take more of the company for free.