The only reason to buy this stock specifically is if you think it will outperform the market though, otherwise you're taking a more risky position with no upside.

Put another way, the risk has to be worth the potential reward - expecting Amazon-like returns might be unrealistic, but what level of returns would be necessary to counteract the amount of risk you're taking on if you buy Anthropic stock? And what kind of valuation would Anthropic have to reach for that to be possible?

Exactly. And for every Amazon, there's 100 companies that no longer exist.

It makes more sense if you only look at it from the perspective of personal finance.

If I expect Anthropic to perform as well as the market, I can lower my risk substantially and see a lot of its upside with the right mix of ETFs. It doesn’t make sense to take on all that risk if I have a much less risky path to the upside. On the other hand, if I expect it to outperform the market, it might fit in my high risk bucket. So from the perspective of individual investors, it’s about matching risk levels and returns.