Zoom & Anthropic: A Faustian Bargain?

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The air, as always, is thick with speculation. Anthropic, that most modern of Golems, built not of clay but of silicon and algorithms, has become the object of universal desire. They promise efficiency, disruption, the very reshaping of reality – and the market, predictably, is in a frenzy. Share prices tremble, fortunes are made and lost on whispers, and one is reminded of those frantic days when everyone was seeking the philosopher’s stone. Anthropic’s ascent is, shall we say, brisk. The valuation, a figure so astronomical it offends common sense, has already entered the realm of the fantastical.

But what of the rest of us, the merely mortal investors? How does one acquire a piece of this digital deity before the inevitable IPO, rumored to be a spectacle of unprecedented proportions? The answer, as often happens, is… indirect. One must seek out the shadows, the hidden connections. And in this particular case, the path leads to Zoom Communications (ZM 1.85%).

Zoom, that purveyor of virtual meetings and digital fatigue, made a rather astute investment some time ago. A mere $51 million, a pittance in the grand scheme of things, was wagered on this fledgling AI lab. Now, that wager threatens to become… substantial. Depending on the whims of the market, and the inevitable dilution that accompanies such explosive growth, Zoom’s stake could represent a considerable portion of its market capitalization. It is a curious situation, wouldn’t you agree? A company known for connecting people now finds itself tethered to a force that threatens to render such connections… unnecessary.

A Stake in the Algorithm

The analysts, those tireless scribes of Wall Street, now estimate Zoom’s stake in Anthropic could be worth anywhere from $2 billion to $4 billion. A return, if realized, that would be… remarkable. Of course, estimates are notoriously unreliable, especially when dealing with entities that defy conventional logic. The precise percentage of Anthropic Zoom owns remains shrouded in mystery, a secret guarded by lawyers and accountants. But the potential is undeniable.

Should Anthropic’s revenue continue its current trajectory – a tenfold increase year over year, a figure that strains credulity – the company could soon be generating tens of billions in revenue. A mere trifle, perhaps, for a being of pure information, but a significant sum for those of us accustomed to counting earthly currency. Even with further dilution, Zoom’s stake at the time of the IPO could easily surpass $5 billion. A comforting thought, if one is prone to optimism.

As of February 24th, Zoom’s market capitalization stood at $26 billion. A stake valued at $5 billion would constitute nearly 20% of that figure – a hidden asset, lurking beneath the surface. Add in the $8 billion in cash currently gathering dust on the balance sheet, and Zoom’s enterprise value could be as low as $13 billion. A bargain, perhaps? Or merely a mirage, shimmering in the heat of speculation?

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The Devil’s in the Details (and the Algorithms)

But let us not get carried away. What, after all, is Zoom doing today? It is no longer experiencing the hypergrowth of the pandemic era, but it continues to generate revenue – a modest 4.4% increase year over year – and has demonstrated some improvement in its margins. Operating earnings of $1.1 billion over the last 12 months represent less than 12 times its estimated enterprise value. A reasonable valuation, perhaps, if one believes in Zoom’s stability and the potential of its Anthropic stake.

One is reminded of a certain Mephistopheles, offering a pact for earthly riches. Zoom, in this analogy, is not seeking power or eternal youth, but merely a share in the future. A future, it should be noted, that may be less utopian than the Silicon Valley prophets would have us believe. The question, then, is not whether Zoom is a cheap buy, but whether one is willing to accept the Faustian bargain. To profit from a force that may ultimately render human connection… obsolete. A chilling thought, wouldn’t you agree? And one that demands a very strong cup of tea.

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2026-02-27 20:52