🖥 Anthropic Tests Microsoft’s AI Spending

Anthropic launched Claude Sheets, a spreadsheet tool resembling Excel, plus whiteboard and office products. Microsoft shares fell 2.2% Tuesday, reviving fears that AI-native software could pressure established vendors. Microsoft is also one of 7 companies set to invest through Anthropic’s $26 billion private placement.

Microsoft’s edge is cash flow. It generated $18.6 billion in free cash flow last quarter, even after $7.4 billion of finance leases. Meta, Oracle, Alphabet, and Amazon were negative in their latest quarters, with Amazon burning $34.8 billion.

The previous Anthropic selloff reversed. A February purchase would have returned 29.7% by Tuesday versus 17.5% for the software ETF, though Microsoft later fell 14.2%. Another decline remains possible, with shares just 4% below their record close.

✔️ @venture