Why Changpeng Zhao Said Most AI Firms Will Go Bust

Anthropic’s $65 billion Series H pushed its post-money valuation to $965 billion, vaulting it ahead of OpenAI and intensifying a sprint toward public listings. The fundraise and Anthropic’s reported $47 billion annualized revenue run rate underscore investor conviction in frontier AI, but corporate buyers and critics warn enterprise ROI and high compute costs remain unresolved. Binance founder Changpeng Zhao warned most AI firms will fail despite the sector’s growth, highlighting the risk of a shakeout. The outcome of imminent S-1 filings and IPOs (OpenAI reportedly preparing an S-1) will likely reprice public exposure to AI through cloud, chip and software megacaps, affecting S&P 500 index funds and AI-linked equities. A strong debut could lift chip and cloud suppliers; a weak showing or revenue shortfall would validate bubble concerns and pressure valuations.