Billionaire investor Howard Marks lays out why valuing AI companies like Anthropic is so tricky

Value investors like him try to project a company's earnings five years from now to gauge whether a stock is attractively priced today, he said on "Bloomberg: The China Show" on Monday.

"I don't think we can do that with much of AI," Marks said.

He gave the example of Anthropic, the AI company behind Claude that recently filed to go public in what could rank among the biggest IPOs in history.

"Can we really fool ourselves into thinking we know what it will do five years from now?" Marks asked. "And yet, that doesn't mean we don't want to be in it."

Anthropic's cofounders wrote in its IPO…