Short answer: Jordan Metzner says he has never seen software companies grow revenue this fast and his business could not operate without OpenAI or Anthropic, but 2.5 times in a year may be hard given data center buildout.
Watch this answer from Episode 17 (starts at 21:41) · Episode 17 notes and transcript
From Episode 17: Sora API, AI Automations, and Apple’s M5 Chip, starting at 21:41.
Sam Nadler [21:41]: Cool. The next story I wanna cover is about Anthropic and the just massive revenue growth targeting 9,000,000,000 ARR by the end of this year. And supposedly, according to Reuters, I'm 20 to 26,000,000,000, a two more than two x potential three x increase by the 2026. I just think it's again, everyone's talking about a bubble, or many people are talking about a bubble, but, are we is the cloud compute and budgets around spending on these AI agentic AI solutions, even bigger? Are we gonna see even more growth in 2026? I don't know where personally I land. I feel like there's so many signals that there's still a ton of growth on the horizon equally? It just feels like we're in uncharted territory with this amount of growth and hype.
Jordan Metzner [22:34]: Yeah. I mean, look. It's early days. I don't think we've ever seen software companies grow to this type of revenue in such a short period of time. I would say that if you take, us as a business, Ryz Labs, like, we are 100% codependent on OpenAI, less so probably in Anthropic, but, like, if OpenAI didn't exist, we'd probably be a 100% codependent on Anthropic. We are dependent on one of those two existing as it's critical for our ability to, generate code, to build content, to, write emails. I mean, we are 100% dependent on that. And they are dependent on data centers, and those data centers are dependent on NVIDIA chips, and those NVIDIA chips are dependent on TSMC, and, those data centers also depend on energy, and, it kinda goes all the way down. But I would say that we, as a business, could not operate without Anthropic or OpenAI or both. Each week, Anthropic just came out with an a new model, for kind of sub agentic processes.
Jordan Metzner [23:31]: But each week, we're seeing kind of like, each brand lev levitate itself above the others. I think we'll see a Gemini three coming out any day now, as we just saw Veo 3.1 kind of, they did it pretty quietly, but looks like it's a little bit better than Sora two. You know? And so we're just gonna continue to see these things where, to be in the game, you're gonna be, basically paying Google, paying Anthropic, paying OpenAI, and probably a few others, that'll come up in the kind of, like, vertical specialization from a model perspective. So, are they undervalued or overvalued? I don't know. I'm not an investor. If I could buy stock in Anthropic, I probably would. If I could buy stock in OpenAI, I probably would. I don't know at what price would make sense for me, but I think that, like, growth is only up to the upside. Whether they can go from 9,000,000,000 to 26,000,000,000, which would be, two and a half times revenue in a year, That probably is a little bit challenging just because, like, there's probably some, like, operational execution has to happen, like getting data centers up and some other things that, like, physics, like, just may not be able to allow. But I think it just shows that, like, there's an insatiable demand, to use these types of services in business. And, you and I see it every day. There's so many companies that just don't have AI implemented in their organizations. And so when they do, that revenue is gonna come to Anthropic and Gemini and OpenAI and others.
Jordan Metzner [24:51]: Right?
