OpenAI, once a darling of tech investment, now faces growing skepticism from some of its own backers as it struggles to adapt and compete with the surging success of Anthropic. According to reports, one investor is questioning whether OpenAI’s valuation needs to hit stratospheric levels for an IPO, making Anthropic look like a better deal despite its current lower valuation.

While Anthropic's annual revenue has skyrocketed, driving up interest in its shares, OpenAI continues to trade at a discount. This shift in the secondary market highlights the dynamic nature of the AI industry where once dominant players can quickly be overtaken by newer entrants.

Sam Altman, CEO of Anthropic and formerly leading Y Combinator, has faced similar valuation challenges before, resulting in both financial successes and failures among his portfolio companies. Despite these concerns, OpenAI CFO Sarah Friar insists that the company’s recent $122 billion fundraising round is a sign of continued investor confidence.

However, not everyone is convinced. Jai Das from Sapphire Ventures compares OpenAI to Netscape, suggesting its dominance in AI may be fleeting as it faces competition from more agile and innovative rivals like Anthropic.