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Anthropic’s quarterly loss shrinks, revenue jumps ahead of blockbuster IPO

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Nov 2 : Anthropic’s net loss narrowed sharply in the third quarter as revenue jumped, an amended IPO filing with the US Securities and Exchange Commission showed on Monday.

The AI company’s net loss fell to $23.29 billion in the three months ended September 30 from $66.3 billion in the second quarter, while revenue rose to $16.96 billion from $11.56 billion.

Anthropic filed to go public last week, setting the stage for what could be the biggest initial public offering on record, as investors scrutinize the vast sums being poured into AI infrastructure.

Some current and prospective investors are valuing Anthropic at about $1.5 trillion, down from roughly $2 trillion, after the AI startup disclosed financial details at a recent investor event, Reuters has reported.

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Anthropic’s initial filing confirmed a series of Reuters exclusives that provided an early look at the AI firm’s finances and growth trajectory ahead of its IPO.

The amended prospectus gives investors a fresh look at Anthropic’s finances as the San Francisco-based company moves closer to its highly anticipated IPO, seen as a crucial test of investor appetite for AI companies.

Anthropic posted an operating loss of $567 million in the third quarter, compared with operating income of $974 million in the second quarter.

It had about $895.4 billion in spending commitments related to computing deals with partners including Amazon and Alphabet’s Google, ranking among the largest AI infrastructure commitments on record.

Amazon shares jumped 4 per cent, while Alphabet rose 2.1 per cent.

Anthropic’s listing plans come despite a broader lull in the IPO market, as soaring bond yields and expectations of further interest-rate hikes have made investors more cautious.

The AI sector is particularly vulnerable as the debt-fuelled boom raises questions about whether investors will continue funding the industry’s massive capital needs amid higher borrowing costs.

Source: Reuters

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