Dan Niles, founder of Niles Investment Management, identified US data-center constraints, declining token prices, and rising funding costs as factors forcing a reassessment of valuations across the AI sector. These pressures are reshaping the competitive landscape as data-center capacity projects are delayed or canceled because of power and grid limitations. Anthropic, which has substantial long-term computing commitments, is particularly exposed to these challenges, and investors are becoming less likely to expect it to reach a $600 billion valuation by year-end. Announcements from Amazon and Google about their commitments to Anthropic, along with changes in its strategy and funding rounds, will be watched through December 31.
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