AI companies are growing faster than we've ever seen before

We've just never seen companies grow this fast.

4:28 / 5:02

funding round. None of these numbers make any sense for anyone who lived five years ago.

And Wait. In in what way? Like, the the the revenue,

the sales to valuation number, the growth of the revenue? Which piece do you think? Both. I mean, I don't think the the revenue multiple is astounding here given the growth. If you do a plot of revenue and growth rate, anthropic is not an outlier. It's a pretty reasonable valuation for a revenue run rate and a growth rate for most companies. We've just never seen companies grow this fast.

About this clip

A discussion about Anthropic's valuation reveals that while the numbers seem crazy compared to five years ago, they're actually reasonable when you plot revenue against growth rate. The key insight is that we've simply never witnessed companies growing at this unprecedented pace before.

Why this clip

This clip provides valuable context for understanding AI company valuations by comparing current metrics to historical norms and explaining the growth rate factor.

4:28 - 5:0235smarket insight

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