It was a painful lesson for early investors. And Anthropic and OpenAI could be even riskier stocks to buy when they go public. Here’s why I wouldn’t bother with either one of them. <\/p>\n
The big intrigue with these two AI companies<\/a> is that they are early leaders in the chatbot space. And while they are growing, my concern is just how profitable they are — they would need to be raking in significant earnings to justify valuations of around $1 trillion or higher. Anthropic is reportedly eyeing a valuation of at least $2 trillion. <\/p>\n According to a recent report from the Wall Street Journal, OpenAI’s revenue for the June quarter was $6.7 billion, rising from $5.7 billion in the first three months of the year. However, it moved further away from profitability with an increasing loss. Anthropic, meanwhile, appears to be in slightly better shape, more than doubling its revenue to $11.6 billion, reportedly generating a “small operating profit” along the way. <\/p>\n However, the problem is that these businesses are seeking high valuations, while any profits they might achieve will be minimal and cash burn is likely to be high. Plus, with greater competition looming from other chatbots<\/a>, it may not get easier for them to get into the black and stay there. <\/p>\n The stocks could be far riskier buys than SpaceX <\/p>\n SpaceX is risky, and its valuation is also rich, as its market cap hovers around $1.8 trillion. It has the advantage, however, of already being a leading company in the global aerospace industry, and its Starlink internet business is also profitable and doing well. <\/p>\n With Anthropic and OpenAI, there’s likely to be less reason for those stocks to be able to command high valuations. In what’s shaping up to be a highly intensive arms race in the AI chatbot wars, there’s no guarantee either one will be successful in the long run. <\/p>\n At extremely high valuations, the stocks could be vulnerable to significant declines once they go public. The safest option may be for investors to simply stay far away from them. <\/p>\n Should you buy stock in Space Exploration Technologies right now? <\/p>\n Before you buy stock in Space Exploration Technologies, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $419,408!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 966% \u2014 a market-crushing outperformance compared to 213% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of August 19, 2026. <\/p>\n David Jagielski, CPA<\/a> has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. They may be growing fast, but that doesn’t mean they’ll be good investments <\/p>\n