Elon Musk Admits He Underestimated Anthropic's AI, and Amazon and Alphabet Investors Should Take Notice

Elon Musk publicly reversed his previous dismissal of Anthropic, now calling it 'obviously currently the leader in AI.' This validation is significant for Amazon and Alphabet, which hold major stakes in Anthropic (Alphabet ~14%, Amazon mid-to-high teens) worth over $100 billion each. Both companies also benefit from massive long-term cloud service commitments from Anthropic. However, investors should note that recent AI-related gains are largely paper valuations rather than sustainable operating earnings, and the arrangement depends on continued AI boom momentum.