Anthropic, the artificial intelligence company preparing for a U.S. stock listing, saw its revenue grow 12-fold last year from a year earlier. But costs also ballooned alongside that rapid growth as the race to develop AI intensified, with computing and infrastructure spending alone topping $7 billion. With Anthropic aiming to go public after the November U.S. midterm elections at a valuation of more than $2 trillion, analysts say the offering will serve as a test of how much investors are willing to pay for AI companies.
Anthropic posted revenue of about $4.6 billion last year, according to an IPO prospectus obtained by Reuters on the 28th. That is roughly 12 times the previous year's figure. The company, founded just five years ago, is expanding its business at a fast clip.
Costs rose nearly as steeply as revenue. Total operating expenses reached $12.65 billion last year. Computing and infrastructure alone accounted for $7.33 billion, three times the 2024 level and more than half of total operating expenses.
The cost burden pushed the company to an operating loss of more than $8 billion. Its net loss came to about $42 billion. Of that, however, about $34 billion was an accounting charge tied to an increase in the estimated value of financing instruments that could later convert into Anthropic shares — a cost different in nature from money the company actually spent running its business.
On the strength of that growth, Anthropic is targeting a valuation of more than $2 trillion, more than double the $965 billion valuation it estimated internally in May. The listing is expected to come after the November U.S. midterm elections.
Still, the market is expected to scrutinize Anthropic's valuation in earnest, given that the rapid growth comes with considerable risks.
Chief among them is the scale of costs still ahead. According to the prospectus, Anthropic's cloud, computing and infrastructure commitments over the coming years total $518 billion. As of the end of last year, the company held $20.28 billion in cash, cash equivalents and short-term investments. Because developing AI models and building the infrastructure to support them requires astronomical sums, the company's ability to raise funds will be a key variable in assessing its value.
Revenue concentration is another concern. About a quarter of total revenue last year came from just two customers. Anthropic warned in the prospectus that many of its major customers have not signed long-term contracts and could cut spending or stop doing business with the company. The Financial Times noted that Anthropic "is making an optimistic case based on its remarkable growth rate," but that "such optimism is dimming as concerns grow about the risks posed by artificial intelligence."
That has led to expectations that the listing could be a watershed for gauging investor appetite for AI companies. With market interest rates rising and downward pressure building on AI stocks, attention is focused on how much value investors will assign to fast-growing AI companies that are absorbing enormous costs. If Anthropic wins recognition for a valuation above $2 trillion, it could also become a benchmark for valuing other AI companies that pursue listings.
The Financial Times earlier reported that Anthropic's annualized revenue had surged to $65 billion as of July this year and would top $120 billion by the end of the year.
