Anthropic reported a net loss of $80.7 billion in the first half of 2026, representing a dramatic increase from $13 billion a year earlier, according to the Wall Street Journal. The loss was primarily driven by $72 billion in accounting charges tied to changes in the value of convertible notes and other instruments that Anthropic issued to raise money, as reported in a draft IPO prospectus. Anthropic's revenue jumped to $16.3 billion in the six months ended June 30 from $1.1 billion a year ago, while AI infrastructure spending nearly quadrupled to almost $9 billion. The figures highlight the substantial costs of the AI race even as investors scrutinize whether the massive spending on chips and data centres will generate returns. Anthropic told investors at its recent meeting that it was profitable on an adjusted basis during the third quarter, though the company has not responded to requests for comment on the latest financial disclosures.
Anthropic is set to begin formally marketing its initial public offering as soon as the week of Nov. 9, putting it in line to begin trading before the US Thanksgiving holiday, according to Bloomberg News. The company is expected to make its debut no later than the end of the year, setting up what could be one of the largest IPOs ever. Anthropic is reportedly considering a November listing targeting up to $100 billion at a $2 trillion valuation, though the company's plans remain unconfirmed amid fierce competition for AI investment. However, some current investors and prospective investors who attended Anthropic's investor day earlier this month are weighing a lower valuation for the AI company after its latest financial disclosures, according to Reuters. The investors who attended the event in San Francisco discussed a valuation of around $1.5 trillion, three of the people had said, a significant step down from the roughly $2 trillion valuation previously expected for the November share sale.
Anthropic could spend $750 billion on additional computing power in the coming years, according to a Wall Street Journal report, as the company prepares for its initial public offering. The company's prospectus shows Anthropic's extensive web of computing power agreements — totaling around $450 billion in the next seven to 10 years — the majority of which can't be canceled. The company plans to spend $111 billion on contracts with Alphabet Inc.'s Google Cloud, $110 billion with Amazon.com Inc.'s Amazon Web Services and $31 billion with Microsoft Corp.. The company deployed more funds to secure computing power in the first half of 2026 than in all of 2025, when it spent $7.3 billion. Anthropic has also agreed to spend up to $86 billion renting Nvidia chips through AI cloud providers Nscale and Lambda, alongside a commitment exceeding $160 billion for Google chips through an arrangement with Broadcom, according to the latest reports. The company warned that access to computing capacity remained uncertain, saying its requirements had exceeded what some cloud partners were willing to provide, highlighting the challenges of scaling AI infrastructure.
Around one-fifth of Anthropic's $16.3 billion first-half revenue came from just two customers, highlighting the company's dependence on a limited customer base, as reported by the Wall Street Journal. This concentration risk adds to the company's already substantial financial commitments and raises questions about its ability to diversify its revenue streams. The company also identified the growing resistance to data centre construction as a potential business risk, with opposition to AI infrastructure projects becoming more widespread globally. Anthropic's draft prospectus outlined risks associated with potentially harmful AI behaviour, including models generating responses resembling blackmail or displaying self-preserving tendencies to avoid shutdown. The company warned that the financial consequences of a catastrophic AI-related incident could exceed available insurance coverage, creating additional uncertainty for investors evaluating the company's long-term prospects.
Despite the massive losses, Anthropic is generating positive free cash flow, had gross margin of 85% and an over 11% positive adjusted operating margin as of the third quarter, according to people familiar with the matter. The company's third-quarter revenue reached $16.8 billion, representing a 45% sequential growth compared to $11.6 billion in Q2 and $4.7 billion in Q1, as reported by Bloomberg. However, over the past two months, sequential growth rates for Anthropic slowed to below 7% month-on-month, creating substantial market anxiety about the company's ability to maintain its growth momentum. The slowing topline growth disappointed some investors, according to the latest Reuters report, with the valuation discussions coming as investors grow increasingly concerned about mounting costs of building AI infrastructure and growing reliance on debt to finance expansion.
Anthropic has announced a significant public benefit initiative, pledging 5% of its shares to a public benefit fund as part of its record-breaking IPO preparations. According to the latest reports, the new fund will be a wholly owned LLC rather than a nonprofit, and will grow as the company grows. As per Anthropic, subject to stockholder approval, 5% of Anthropic's shares will be committed today, with an additional 2% added at the board's discretion for every 50% increase in the company's value above a set baseline. This commitment comes as Anthropic prepares what would be the largest IPO for a public benefit corporation, with the company having previously raised $65 billion in May at a $965 billion valuation. The pledged equity could become a substantial sum given the company's current market position and the significant valuation reduction being discussed among investors.
