Anthropic Could Spend $750 Billion on Computing Ahead of Public Offering

Anthropic is working on a confidential draft S-1 filing for an initial public offering, details of which were reviewed by The Wall Street Journal and Reuters. Marketing for the offering could begin the week of November 9, according to The Next Web.

Fortune magazine, citing The Wall Street Journal, reported that the company will seek a valuation of up to $2 trillion, while Reuters reported that some investors are considering a lower valuation of around $1.5 trillion—a level that would place the company at the forefront of the most valuable artificial intelligence companies.

The company's revenue in the first half reached $16.3 billion, compared to $1.1 billion a year earlier, while its net loss reached $80.7 billion, mostly resulting from $72 billion in accounting charges.

The draft outlines potential spending on computing of up to $750 billion, including deals still under negotiation, a figure that reflects the scale of competition for data centers and chips in the AI race.

What do these terms mean?

Draft Registration Statement (S-1): A preliminary document submitted by a company to the Securities and Exchange Commission before a public offering, containing its financial statements, risks, and business plan.

Initial Public Offering (IPO): The sale of a company's shares to the public for the first time, making its shares traded on a stock exchange.

Valuation: The total market value of a company, usually calculated by multiplying the share price by the number of shares.

Accounting Charges: Amounts recorded in financial statements that reduce reported profits, and may not represent cash actually paid during the same period.