🔗 Anthropic, AI and The “Numbers” Problem.
A $40 billion run rate with 40 percent net revenue retention is a different company from a $40 billion run rate with 130 percent net revenue retention. From outside, the two are indistinguishable. The valuation gets the same multiple in both cases. The first company is worth a fraction of the second. This is not a small problem. It is the entirety of the problem.
💬 Om
It’s not an earth shattering observation. Anyone in ‘the business’ knows this. So it isn’t ignorance - it is deception.
Also important … Om gets to it in a paragraph to get to where Ed Zitron arrives after a 20 minute monologue.