Anthropic, OpenAI Can Both Win AI Race: T. Rowe Price

Let's just go to the thesis on anthropic. What you Antero saw is the opportunity. Yeah. So we've been a big shareholder, uh, for entropic. We've been across the company for almost three rounds right now. I think we got really, really excited when we did the first round last season. Was that, um, last year, uh, we participated in the 170 billion all around. That was our first entry point. That was over the summer, and we got really excited about the product market fit that I had demonstrated what coding was probably one of the largest market there were very focused, and I had really clearly demonstrated their ability to onboard all the major enterprise customers. Now, fast forward to today. I think this was at one of entropic. And I think what's really exciting now is moving forward. I think we are really thinking for large language model about act two, and our thesis internally is that it moves now to personal and enterprise operating system. And what these companies are now going to be able to do is not only summarize information, address questions, but really take action. And I think if we're looking into this, they don't need to replace every single application. What they need to do, they need to be the layer where every single type of workflow gets done. Okay, this is interesting. I want to keep going into that too. On the enterprise side, it's it's easier to understand because anthropic got a lot of credit for that early move in the enterprise. A more recent example, for example, has been Salesforce. So through Claude you could, you know, run CRM through Claude. But you said personal. Yes. We're in the age of the AI age and right. Grok bot muse does anthropic have something there. What's the economic opportunity with that? Yeah. So I think we will continue to see kind of blurring between enterprise and personal. I think what is probably most recent, and that we probably weren't talking about as talking a little bit more about OpenAI and Dev Day. That happened. Yeah, I was there last week. Um, and I think one of the most anticipated or most exciting release from Dev Day was really dots. Yeah. And, and I think this is where we are starting to see personal agents that we've all kind of discovered over the last 2 to 3 weeks wasn't really into really entering, uh, the enterprise, uh, layer. I think entropic today, if we're looking into it, it's, you know, a Terra. We have a major partnership with Dom on the enterprise side. And I do think that we will soon be able to use and draw back to take action for, for enterprise as well. Emma, you're a really interesting case study, not necessarily a unique case study of a an investor who has positions in OpenAI and anthropic. So how do you distinguish between them? I think we don't need to distinguish. I think the bets that really has been taken by Tero is that there is going to be a major value capture that's going to go to the models that can stay on the frontier. And today, if we're looking into it, I think both OpenAI and anthropic have been very well positioned. I think we are very, very excited about this act too, because when we are looking into it, adding this fight, for example, OpenAI is 1.2 billion weekly active users. There's probably only a few percentage of the action that these, uh, users are taking that leads to action. And I think monetizable action. You mean, or just monitor monetizable or just simply action where we can really see, uh, the ROI on, on, on what is happening with, um, efficiency, but also completed task. Um, and then when we're looking a little bit more into, uh, entropic and what is also super exciting. There is every single verticals that they can tackle going forward. And I think one of the chapter that and Tropic has been public about and I think, um, for us is it's crucial. And we're seeing as a major chapter coming up is really eye for science. Um, and I think we're going to see a lot more happening in that space. But on your value capture, uh, thesis, you do see room for two frontier labs that if they stay in the frontier, that economic benefit accrues to both. Absolutely. I think for us, we don't see as winner takes all. I think we will see a few players that can dominate. And I think we have seen so far to well, the position for that would entropic and opening up is the exposure from tea row to anthropic and opening are comparable. So um for both company we have multi billions. That's among some of our um largest position that we have on the private markets. The other one that's kind of out there in similar sizes as Databricks. That's right. Those are kind of two big bets that we've been doing in kind of data in Friday. So, uh, the three those things that those companies have in common is that they're waiting to go public and in different stages that. I think one reason I was really interested to have you on the show is like the games kind of changed from when I first arrived to Silicon Valley. You know, you see it grow much more often on the press release. Yes. Co-leading rounds, um, earlier into the cap table. Yes. What does that reflect? Yeah. So Tyro has been doing private investing for almost two decades. Okay. Um, but I think we are really doubling down on our private investing practice. And I think as we are looking into the landscape today, um, a lot of, uh, what is happening at the frontier of AI is still happening on, on kind of private markets. We've also seen other noticeable trend, for example, defense tech and a lot of you're in Andorra, for example. Yeah. And rule is one uh, that we are very excited about. Um, and then ramp on the financial side is also super exciting. Um, but I think as we are looking into these companies, all of this growth is all private. So if we want to access it, we need to be earlier in those companies. So for us entering these companies at large, series B, series C, building conviction, getting to know management team, helping them through that transition and getting them on the other side of the, uh, IPO and being a bit more long term is really, I think, where we can distinguish and provide, uh, value to these companies. Look, um, you know, OpenAI and anthropic have filed confidentially Databricks everyone's wondering about I won't I won't ask you to go into specifics, but generally you think about those case studies. How do you know when those companies are ready to go public? And what's Tehran's role in advising? Right. Is that when you're a private investor on the cap table. Yeah. I think there's a misconception sometimes that if you take money from Tyro, you're going to be pushed to to kind of go public at one point in time. I think for us, we are patient capital. And I think what we want to be doing is backing generational companies and ensuring that they are in a position where they can choose their own timeline as to when they are ready for public markets. Um, and then, um, I think if we're looking into a lot of these companies, many of them are already, uh, today. So it's more of a decision of the management team as to when they think is the right timing. What we can say on our side is that there will be demand for these kind of companies and appetite from the public markets, and we are able to kind of prepare these companies, uh, several quarters or years ahead of the crossing by telling them what are going to be the questions and things people will be focusing on on the other side.