How does Anthropic make money?

In the six months to Jun 30, 2026, Anthropic earned $13.1 billion (80%) of its $16.3 billion revenue from usage-based pricing, mostly per token of text processed, and $3.2 billion from subscriptions.

Who are Anthropic's customers?

At Sep 30, 2026, Anthropic had more than 11,900 customers paying at least $100,000 a year. For the nine months to Sep 30, 2026, its five largest customers made up about 25% of revenue, and none was over 10%.

How big is Anthropic?

Anthropic's revenue was $4.6 billion in FY2025 (calendar 2025), with a net loss of $42.0 billion. In the six months to Jun 30, 2026, revenue was $16.3 billion and the net loss $80.7 billion.

Why is Anthropic's net loss so large?

Most of Anthropic's net loss is a non-cash charge for revaluing its convertible notes: $34.3 billion of the $42.0 billion loss in FY2025, and $72.4 billion of the $80.7 billion loss in the six months to Jun 30, 2026.

Who controls Anthropic after the IPO?

Per Anthropic's S-1 (Oct 26, 2026), a single Class F share held by the seven co-founders' Founder LLC carries 50.1% of votes, and the Long-Term Benefit Trust elects a majority of the board. All Class A votes are capped at 49.9%.

S-1 filed

IPO · Information Technology · Proposed listing on Nasdaq

Anthropic IPO: how the business works

Anthropic sells use of its Claude AI models. Revenue was $16.3 billion in the six months to Jun 30, 2026, with a net loss of $80.7 billion.

Anthropic, PBC · San Francisco, California · Founded 2021

Based on the registration statement (Form S-1) dated Oct 26, 2026.

The company has publicly filed its registration statement (Form S-1 or F-1) with the SEC. No price range is set yet.

Last updated Oct 27, 2026 · Reviewed by Cityfort Research on Oct 27, 2026

Revenue, FY2025 (audited): $4.6B
Net loss, FY2025 (audited): $42.0B
Revenue, six months to Jun 30, 2026: $16.3B
Net loss, six months to Jun 30, 2026: $80.7B
Founders' Class F share of votes after the IPO: 50.1%

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Cityfort's research and drafting tools include Claude, which is made by Anthropic. This page uses only Anthropic's SEC filings and the SEC's EDGAR record of them.

01 · The business in one line

What does Anthropic do?

Businesses, developers and individuals pay Anthropic to use its Claude AI models, by how much they use or by subscription; the computing power to train and run those models is its largest operating cost.

In the six months to Jun 30, 2026, 80% of Anthropic's $16.3 billion revenue came from usage-based pricing; subscriptions brought in the rest.
Compute and infrastructure cost $8.9 billion in that period, equal to 55% of revenue, per the S-1.
The net loss of $80.7 billion in that period mostly came from a $72.4 billion non-cash charge for revaluing its convertible notes at higher fair values.

02 · The offer

What is the Anthropic IPO?

Anthropic's S-1, filed on Oct 26, 2026, plans a Nasdaq listing of Class A shares under the proposed ticker ANT; new shares from the company and existing shares from selling stockholders are both planned, but the share counts and price range are still blank.

New shares sold by the company: Not yet in the filing
Shares sold by existing stockholders: Not yet in the filing
To list on: Nasdaq
Proposed ticker: ANT
Lock-up on existing holders: 180 days

New shares: Anthropic sells new Class A shares and keeps that money, after underwriting fees. The number of shares is blank in the S-1.
Existing shares: selling stockholders sell some of their shares, and that money goes to them, not to Anthropic. The S-1 leaves the number of these shares blank.
Underwriters get a 30-day option to buy extra new shares from Anthropic. The number is blank.
Separately, Google has an option to buy up to $10.0 billion of non-voting Class N shares at the IPO price, in a private sale alongside the offering.
Class A shares carry one vote each, but all Class A votes together are capped at 49.9% while the founders' Class F share exists.
The S-1 also describes offerings in Australia, Canada, Japan, Switzerland, the UK and some European countries.

Holders who signed lock-ups agree not to sell for 180 days, or until shortly after Q1 2027 results, with staged early releases. Certain holders of more than 0.5% and the co-founders are locked up for up to 365 days; each co-founder may sell up to 29% after day 180 or Q1 2027 results, whichever comes first.

Share classes and votes

Anthropic share classes after the offering, as described in the prospectus
Class	Votes per share	Held by	% of shares	% of votes	Sold in this offering	Note
Class A common stock	1	Buyers in the offering and existing holders, including the co-founders	–	–	Yes	One vote per share. While Class F exists, all Class A votes together are capped at 49.9% of total voting power.
Class N common stock	None	Mainly strategic business partners such as Amazon and Google, per the S-1	–	–	No	No vote except where law requires. Same economic rights as Class A. Becomes Class A when sold or transferred to an unaffiliated third party.
Class T common stock	See note: Votes only on electing a majority of the board (the Class T directors), redeeming Class E shares, certain changes to Class F rights, and where law requires.	The Long-Term Benefit Trust (one share)	–	–	No	No vote on general matters. It elects and removes the Class T directors, who are a majority of the board. No economic rights.
Class F common stock	See note: One share fixed at 50.1% of all votes on matters put to stockholders generally, including electing the directors other than the Class T directors.	Founder LLC, owned by the seven co-founders (one share)	–	50.1%	No	A single share whose votes always equal 50.1% of total voting power on general matters, including electing the non-Class T directors. No economic rights. Ends after a transition period if fewer than three co-founders stay 'Continuing Founders'.
Class E common stock	See note: One vote per share only on: the Specified Class T Director when the nominating committee does not agree with the trust, certain changes to the trust, Class T rights or redemption, and where law requires.	Employees other than the co-founders	–	–	No	No vote on general matters; one vote per share only on a few matters, such as changes to the trust's terms. No economic rights. Half redeemed each year after leaving; all at once on death, cause or joining a competitor, and in other cases.

Underwriters: 22 named in the S-1 (lead: Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC)
Underwriter conflict of interest: The S-1 names no FINRA Rule 5121 conflict of interest. It says affiliates of 16 of the underwriters, including Morgan Stanley and Goldman Sachs, are arrangers or agents under Anthropic's credit agreement, and some underwriters are its customers.
Controlled company: The S-1 says Anthropic is a 'controlled company' under Nasdaq rules. It will use that exemption only for its nominating and governance committee, which will not be fully independent; the board majority and the audit and compensation committees will be independent.
Directed share programme: The S-1 does not describe a directed share program.

Lead underwriters: Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC
Transfer agent: Computershare Trust Company, N.A.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

03 · Where the new money goes

What will Anthropic do with the money it raises?

The S-1 (Oct 26, 2026) says Anthropic will use its share of the money for general corporate purposes, including compute, and to pay taxes due when certain staff share awards settle; it gives no amounts.

General corporate purposes: working capital, operating costs, capital spending including compute and infrastructure, and hiring and keeping staffThe S-1 gives no dollar split and says management will have broad discretion over the money.Amount not fixed
Paying tax withholding and remittance obligations when certain restricted stock units (RSUs, share awards to staff) are settledThe amount is blank in the S-1.Amount not fixed
Possible acquisitions of, or investments in, businesses, products or technologiesThe S-1 says the company has no agreements or commitments for any material acquisition at this time.Amount not fixed

Anthropic has never paid a dividend, says it does not expect to, and its credit agreement limits dividends.

Only the shares the company sells raise money for it; money from shares sold by existing stockholders goes to them.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

04 · What it sells

What does Anthropic sell?

Anthropic builds large AI models, called Claude, that read and write text and code. Businesses and people pay to use them through Anthropic's own products or through big cloud providers.

Claude models
Families of AI models of different sizes and prices: Mythos, Opus, Sonnet and Haiku. Some Mythos-class models are offered only through trusted-access programmes, per the S-1.
Claude Platform
Tools for developers and businesses to build Claude into their own software, including the API (a way for programs to call the model) and agent-building kits. Customers mostly pay per token, a small unit of text.
Claude Code
A tool that writes, edits and checks software code for programmers.
Claude.ai and Claude Cowork
Chat and work apps for individuals and teams, mostly sold by subscription. Cowork, launched as a research preview in Jan 2026, is merging with Claude.ai from Sep 2026.
Claude Enterprise and industry versions
Company-wide plans, plus versions for financial services, healthcare, life sciences, legal, education and government.

Think of it like this

Like a taxi meter for AI work: most business customers pay for each unit of text the model reads and writes.

What it does

Does: Trains its own AI models and sells access to them
Does: Sells directly and through Amazon Bedrock, Google Cloud and Microsoft Azure, paying each cloud provider a fee
Does: Runs its models on Amazon Trainium chips, Google TPUs, NVIDIA GPUs and AMD GPUs, and is building out its own leased data centres

What it does not do

Does not: Does not receive the money from shares sold by selling stockholders in this offering

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

05 · Who pays it

Who pays Anthropic?

Businesses and developers paying by use
80%
of revenue
Pay for the amount of model work used, priced per token and by model, directly or through cloud marketplaces. About 48% of revenue in the six months to Jun 30, 2026 came through cloud providers' marketplaces.
Subscribers
20%
of revenue
Individuals, teams and companies paying a subscription for Claude apps.

Businesses and developers paying by use80%
Subscribers20%

How spread out the customers are

For the nine months to Sep 30, 2026, the S-1 says no customer was over 10% of revenue and the top five were about 25%. One unnamed customer was 11% of revenue in the six months to Jun 30, 2026; in FY2025, two unnamed customers were 12% each. Shares of revenue above are for the six months to Jun 30, 2026.

Top 5 customers: 25%

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

06 · How the money flows · Six months to Jun 30, 2026

How does money flow through Anthropic?

Money in

Revenue$16.3B
Interest income$1.1B

The company

Anthropic

$17.4B came in

Money out

Compute and infrastructure$8.9B
Personnel (incl. stock-based pay)$3.2B
Sales, marketing and partnerships$3.2B
Other operating and administrative costs$1.7B
Non-cash revaluation of convertible notes and related items$72.4B
Other expense (mainly revaluing note purchase agreements)$8.8B
Income tax$21M
Net loss−$80.7B

Customers paid $16.3 billion for model use and subscriptions; interest on cash added $1.1 billion.
Running costs (compute, staff, sales and admin) were $17.0 billion, a $693 million operating loss.
Revaluing the convertible notes and related agreements cost $81.1 billion, mostly non-cash charges.
What was left is a net loss of $80.7 billion.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

07 · Where the money goes · Six months to Jun 30, 2026

Where does $100 of Anthropic's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Anthropic · Six months to Jun 30, 2026

Receipt for every $100

Where $100 of Anthropic's money went in Six months to Jun 30, 2026
Compute and infrastructure	$51.4
Personnel	$18.1
Sales, marketing and partnerships	$18.2
Other operating costs	$9.9
Non-cash revaluation of convertible notes	$416.1
Other expense (note agreements)	$50.3
Tax	$0.1
Loss (spent more than came in)	$-464.1
Total	$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

08 · What it needs to run

What does Anthropic need to run?

Computing power
Chips and data centres from Amazon, Google, Microsoft, SpaceXAI, Nscale, Lambda and leased Broadcom-based equipment. Fixed or minimum commitments were about $265.6 billion at Jun 30, 2026, per the S-1.
Researchers and engineers
About 5,300 employees at Sep 30, 2026, most in research, engineering and product.
Training data
Text and code used to train models. Several copyright suits challenge how some of it was obtained and used.
Outside capital
Anthropic had raised $141.1 billion of capital in total by Jun 30, 2026, per the S-1.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

09 · Why it makes money

Why does Anthropic make money?

Since 2024, revenue has grown faster than computing costs, while long-term compute commitments have grown too.

Training new models costs a lot of computing power before any revenue comes in. Since 2024 revenue has grown faster than compute costs, so compute fell from $653 per $100 of revenue in FY2024 to $55 in the first half of 2026. The company has also signed compute deals worth far more than its revenue.

Compute and infrastructure cost per $100 of revenue

$653$55

FY2024 to H1 2026

Anthropic trains a new, more capable model
Customers use it for more work, paying per token or by subscription
Revenue and outside capital pay for more compute
More compute trains the next model and serves more customers
Over 80% of Q3 2026 revenue came from model versions released in the prior six months

↺ Step 5 feeds back into step 1.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

10 · Where it sells · Six months to Jun 30, 2026

Where does Anthropic sell?

United States (by customer billing address)72%
Outside the United States28%

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

11 · The numbers · Consolidated · US$

How has Anthropic done?

Revenue

$4.6BFY2025

Revenue rose from $41 million in FY2023 to $4.6 billion in FY2025, and was $16.3 billion in the six months to Jun 30, 2026, up from $1.2 billion a year earlier.

US$ · Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

See the numbers

Revenue (US$)
Period	Revenue (US$)
FY2023	$41M
FY2024	$386M
FY2025	$4.6B

Net profit

−$42.0BFY2025

Anthropic made a net loss every year, from $1.5 billion in FY2023 to $42.0 billion in FY2025, of which $34.3 billion was a non-cash revaluation of convertible notes.

US$ · Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

See the numbers

Net profit (US$)
Period	Net profit (US$)	EPS ($)
FY2023	−$1.5B	−$1.42
FY2024	−$8.3B	−$5.43
FY2025	−$42.0B	−$23.04

Profit kept per $100 of revenue

$-915.3FY2025

The operating loss, before the note revaluation, was $176 per $100 of revenue in FY2025 and $4 per $100 in the six months to Jun 30, 2026.

$ of profit per $100 of revenue (net margin) · Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

See the numbers

Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
Year	Net margin	EBITDA margin
FY2023	−3,734.1%	–
FY2024	−2,152.6%	–
FY2025	−915.3%	–

Free cash flow

−$2.8BFY2025

Free cash flow (cash from operations minus equipment purchases) was negative every full year, minus $2.8 billion in FY2025, and plus $3.4 billion in the six months to Jun 30, 2026.

US$ · cash from operations minus spending on plants and equipment · Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

See the numbers

Free cash flow (US$ · cash from operations minus spending on plants and equipment)
Year	Cash from operations	Capital spending	Free cash flow
FY2023	−$1.6B	$2M	−$1.6B
FY2024	−$5.7B	$15M	−$5.7B
FY2025	−$2.6B	$131M	−$2.8B

See all yearly numbers

Anthropic annual financials, FY2023–FY2025, US$
Year	Revenue	EBITDA	Net profit	EPS ($)	Operating cash	Capex	Free cash
FY2023	$41M	–	−$1.5B	−$1.42	−$1.6B	$2M	−$1.6B
FY2024	$386M	–	−$8.3B	−$5.43	−$5.7B	$15M	−$5.7B
FY2025	$4.6B	–	−$42.0B	−$23.04	−$2.6B	$131M	−$2.8B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (December 31). Net profit is the share belonging to the company's owners.

Latest part-year · Six months ended Jun 30, 2026 (6 months to Jun 30, 2026)

Revenue: $16.3B
Net profit: −$80.7B
EPS (not annualised): −$39.88

A part-year can't be compared with a full year. Audited figures from the S-1 (interim period unaudited), converted from US$ million to US$ million.

12 · The company's own measures · FY2025, six months to Jun 30, 2026 and Sep 30, 2026

What do Anthropic's own measures show?

Anthropic's adjusted figures leave out costs the GAAP figures include, such as stock-based compensation ($2,185 million in the six months to Jun 30, 2026) and the non-cash revaluation of its notes.

Official (GAAP): Operating loss, six months to Jun 30, 2026
−$693M
Company's own measure: Adjusted operating income, six months to Jun 30, 2026
$1.6B
Company definition: operating loss excluding stock-based compensation, non-cash charitable contributions and the Bartz settlement.
Official (GAAP): Net loss, six months to Jun 30, 2026
−$80.7B
Company's own measure: Adjusted net income, six months to Jun 30, 2026
$2.7B
Company definition: net loss excluding stock-based compensation, non-cash charitable contributions, the Bartz settlement, and fair-value changes on convertible notes, derivatives, SAFEs and certain other financial instruments.
Official (GAAP): Operating loss, FY2025
−$8.1B
Company's own measure: Adjusted operating loss, FY2025
−$4.9B
Same company definition as above. FY2025 excludes $1,165 million of stock-based compensation, $541 million of non-cash charitable contributions and the $1,500 million Bartz settlement.
Official (GAAP): Net loss, FY2025
−$42.0B
Company's own measure: Adjusted net loss, FY2025
−$4.4B
Same company definition as above; it also leaves out the $34.3 billion fair-value change on convertible notes and related items.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Net revenue retention, quarter to Sep 30, 2026
900.0%
About 900%, per the S-1. Company definition: revenue in the latest quarter from customers who were customers a year earlier, divided by their revenue in that earlier quarter. Excludes Pro and Max subscribers.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Customers paying $100,000 or more a year, Sep 30, 2026
11,900 customers
More than 11,900, up from about 1,500 at Dec 31, 2025. Counted on trailing 12-month revenue; the company uses it in place of an 'enterprise customer' count.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

13 · Financial strength · Jun 30, 2026

How much debt does Anthropic have?

At Jun 30, 2026, cash and short-term investments were $131.7 billion, against $6.2 billion of note principal (carried at $108.6 billion fair value); stockholders' equity was negative.

Total debt$6.2B
Cash and investments$131.7B
Net cash (cash minus debt)$125.4B
Net worth (shareholders' money)−$127.6B

Debt here is principal: $6.2 billion of non-interest-bearing notes held by Amazon, which convert into Class N shares. The balance sheet carries all convertible notes at fair value, $108.6 billion.
The S-1 says the fair-value rise of the notes came from an increase in the company's enterprise valuation; it is a non-cash charge. Fair-value changes since 2023 make up $113.2 billion of the $132.9 billion accumulated deficit.
Total stockholders' equity was minus $127.6 billion, for two reasons: the $132.9 billion accumulated deficit, and $157.5 billion of convertible preferred stock that sits outside equity until it converts at the IPO.
The $3.25 billion credit facility was undrawn at Jun 30, 2026. Amended and restated as a $15.0 billion secured facility in Sep 2026, it requires at least $5.0 billion of liquidity from Q4 2026.
Fixed or minimum compute commitments were about $265.6 billion at Jun 30, 2026; after that date, new and amended deals carry about $245 billion of minimum payments, some conditional; the S-1 gives no combined total.
$1.2 billion of the $1.5 billion Bartz settlement was still owed at Jun 30, 2026.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

14 · Who owns it before the IPO · Sep 30, 2026

Who owns Anthropic before the IPO?

The S-1 table of principal stockholders (as of Sep 30, 2026) gives share counts but leaves every percentage blank. The seven co-founders beneficially own about 1.69 billion Class A shares together; Amazon and Google will each hold more than 5% of all shares, in non-voting Class N stock.

From the prospectus table of principal stockholders. Holdings fall after the IPO when new shares are sold; the prospectus also shows the holding after the offering.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

15 · Who runs it

Who runs Anthropic, and did they deliver?

Dario Amodei
Chief Executive Officer, co-founder and director · since 2021
Earlier VP of Research at OpenAI. FY2025 total pay $17,958,298, mostly share and option awards; includes $2,745,874 of security costs.
Daniela Amodei
President, co-founder and board chair · since 2021
Earlier VP of Safety and Policy at OpenAI. FY2025 total pay $16,408,998.
Krishna Rao
Chief Financial Officer · since 2024
Earlier CFO of Fanatics Commerce and Cedar. FY2025 total pay $720,250; received 1,122,840 options and 1,862,140 RSUs in Feb 2026.
Reed Hastings
Lead independent director (Class T) · since 2025
Netflix co-founder. Audit and nominating and governance committees.
Christopher Liddell
Director (Class T) · since 2026
Former CFO of Microsoft, General Motors and International Paper. Audit and safety and risk committees.
Vas Narasimhan
Director (Class T) · since 2026
CEO of Novartis. Compensation and safety and risk committees.
Yasmin Razavi
Director · since 2023
General Partner at Spark Capital, whose funds bought preferred stock in several of Anthropic's funding rounds.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

16 · Governance signals

What do Anthropic's governance filings show?

Auditor: Ernst & Young LLP, since 2025
Auditor changes: Oct 30, 2025: Grant Thornton LLP → Ernst & Young LLP (Grant Thornton (auditor for FY2023 and FY2024) was dismissed; the S-1 says there were no disagreements or reportable events.)
Audit qualifications: None reported
Related-party dealings: Spark Capital funds (director Yasmin Razavi) and Bodhi LLC (director Vas Narasimhan) bought preferred stock. Both Amodeis and the CFO sold shares in company tender offers. The company pays the Founder LLC's legal fees (amount blank) and paid the Long-Term Benefit Trust $8.4 million in the nine months to Sep 30, 2026.
Credit rating: No public credit rating found

Flags to know about

other
Votes are not tied to ownership
After the IPO, one Class F share held by the co-founders carries 50.1% of votes and the Long-Term Benefit Trust elects a majority of the board. The trust's five-seat body had one vacancy at filing.
related party
Spouse of the President is an employee
Holden Karnofsky, Daniela Amodei's spouse, has worked at Anthropic since Jan 2025; his 2025 cash pay was $430,213, plus 179,500 options and 761,700 RSUs.
regulatory · Sep 25, 2026
US Department of War supply-chain risk designation
In Feb 2026 the Department of War moved to label Anthropic a supply-chain risk. On Sep 25, 2026 an appeals court upheld one designation 2-1; Anthropic has asked the full court to rehear it.
auditor · Oct 30, 2025
Auditor changed in 2025
Ernst & Young replaced Grant Thornton on Oct 30, 2025; the S-1 reports no disagreements.
disclosure
Key offer figures still blank
The S-1 leaves blank the price range, share counts, ownership percentages, total contractual obligations and Q3 2026 revenue.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

17 · Group and related parties

How much does Anthropic rely on related parties?

Anthropic relies on Amazon, Google and Microsoft at the same time as suppliers of computing power, sales channels and, for Amazon and Google, large investors; the S-1 says these overlapping roles create conflicts of interest.

About 48% of revenue in the six months to Jun 30, 2026 came through the cloud providers' marketplaces, and 58% of receivables at Jun 30, 2026 came from such sales.
Amazon and Google will each hold more than 5% of all shares after conversion, in non-voting Class N stock. The S-1 caps Amazon at 12% and Google at 14.99%.
Amazon holds $6.2 billion of non-interest-bearing notes that convert into Class N shares. Amazon and Google also have note agreements under which the company may issue more notes or shares to them.
Compute commitments include at least $110.0 billion with Amazon, about $114.5 billion with Google and at least $44.9 billion with Microsoft, per the S-1.
The S-1 says the cloud providers are also competitors, and the company may not get the compute it needs on acceptable terms.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

18 · Legal cases · as of Oct 26, 2026

What legal cases does the Anthropic offer document list?

The S-1 (Oct 26, 2026) lists copyright suits over training data, a suit Anthropic brought against the Department of War, and FTC and state attorney-general inquiries; the company says it disputes the allegations in pending cases. Several music-publisher suits, consumer class actions over subscription advertising and Bartz opt-out suits are also pending; the S-1 gives no count.

Outstanding cases

Outstanding cases listed in the Anthropic offer document
Who	By or against	Type	Cases	Amount involved	Note
The company	Against	civil	1	$1.5B	Bartz: authors' class action alleging copyright infringement of books used in training (filed Aug 2024). Settled for $1.5 billion, approved Jul 2026; the company says it disputes any wrongdoing. $300 million paid in 2025.
The company	Against	civil	1	–	Concord I: music publishers allege the company copied and spread song lyrics (filed Oct 2023). Summary-judgment motions were heard on Oct 21, 2026. Further publisher suits filed in 2026 name two executives in some cases.
The company	Against	civil	4	–	Canada: two proposed authors' class actions (one stayed) and two news-publisher suits, alleging copyright breaches in model training.
The company	Against	civil	1	–	Reddit (filed Jun 2025) over use of Reddit data; narrowed in Sep 2026 to breach of contract, interference with contract and unfair competition.
The company	Filed by	other	2	–	Anthropic v. Department of War, in a California district court and the D.C. Circuit. The district court largely ruled for Anthropic on Aug 27, 2026; the D.C. Circuit upheld the Section 4713 designation 2-1 on Sep 25, 2026. Rehearing requested.

Cases are listed as the offer document describes them. A pending case is an allegation until a court or regulator decides it.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

19 · What could go wrong

What could go wrong for Anthropic?

Other
Large losses, and profit may never come
Net loss was $42.0 billion in FY2025 and $80.7 billion in the six months to Jun 30, 2026, mostly from non-cash note revaluation. The operating loss was $8.1 billion in FY2025. The S-1 says the company may not reach or keep profitability.
Watch Operating income or loss in the next S-1 amendment, including the Q3 2026 numbers left blank in this filing.
Cash and liquidity
Compute commitments far larger than revenue
Fixed or minimum compute commitments were about $265.6 billion at Jun 30, 2026, mostly non-cancelable, against $16.3 billion of revenue in the half-year. The S-1 says actual needs may differ, leaving shortfalls or unused capacity.
Watch The total commitment figure, blank in this S-1, and cash used in operating and investing activities.
Concentration
Reliance on a few cloud partners and customers
About 48% of revenue in the six months to Jun 30, 2026 came through cloud marketplaces, and one unnamed customer was 11% of revenue in that period. The top five customers were about 25% of revenue for the nine months to Sep 30, 2026.
Watch Top-five customer share and the cloud-marketplace share of revenue in later filings.
Competition
Must keep building the most advanced models
The S-1 names OpenAI, Google, other large technology companies and open-weight models as competitors. Over 80% of Q3 2026 revenue came from model versions released in the previous six months.
Watch New model releases by Anthropic and its competitors, and changes in its pricing.
Regulation
Government action can cut off customers or models
A Department of War supply-chain risk designation was upheld on appeal in Sep 2026. In Jun 2026, US export restrictions led the company to disable two models for all customers until safeguards were updated and the restrictions lifted.
Watch The rehearing petition in the D.C. Circuit and any new export rules for AI models.
Legal
Copyright and data lawsuits
Anthropic agreed to pay $1.5 billion to settle the Bartz authors' class action. Music-publisher, Canadian, Reddit, opt-out and consumer suits are pending, and the S-1 gives no loss estimate for them.
Watch The ruling on the Concord I summary-judgment motions heard on Oct 21, 2026.
Technology
Misuse of models and customer rule-breaking
The S-1 says models may be misused or act in unintended ways. The company estimates 5% to 7% of revenue in the nine months to Sep 30, 2026 came from customers later found breaking its usage policy or terms.
Watch Changes in that estimate and any enforcement against customers in later filings.
Debt
More borrowing to fund compute
A Broadcom-linked facility allows up to $42.0 billion of convertible notes at 9% interest paid in kind (13% if revenue conditions are missed). The S-1 says the company may lack cash to repay notes or its credit agreement when due.
Watch Notes issued under the Broadcom facility and the $5.0 billion liquidity covenant from Q4 2026.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

20 · Risks of the offer

What risks does the Anthropic offer document flag?

Risk factors the company lists in its offer document, in plain words.

Class A buyers have limited say
The founders' Class F share carries 50.1% of votes and the Long-Term Benefit Trust elects a board majority. The S-1 says this may effectively remove Class A holders' ability to influence important decisions, including a sale of the company.
Controlled company exemptions
As a 'controlled company' under Nasdaq rules, Anthropic relies on an exemption so its nominating and governance committee need not be fully independent.
Public benefit duties can outweigh stockholder returns
As a public benefit corporation, directors must balance stockholders' financial interests with others affected and the company's stated purpose. The S-1 says this may conflict with stockholders' financial interests and bring more lawsuits.
Many sources of dilution
New shares can come from note conversions, Class N conversions, AMD and cloud-partner share purchases, 2,950 million shares reserved for the equity plan, and 'Public Benefit Issuances' of up to 2% more each time the price rises 50% above the last milestone.
A large share-based pay charge at the IPO
RSUs that vest on the IPO would have meant $2.9 billion of expense on that day, plus $23.7 billion still to be recognised, had the IPO happened on Jun 30, 2026, per the S-1.
Lock-up releases and future sales
Some locked-up holders can sell part of their shares from the first trading day, with more released in stages. The S-1 says sales of Class A shares in the market could lower the price.
No trading history and a volatile price
There has been no public market for the shares. The S-1 says the price may swing widely and investors could lose all or part of their investment.
Key terms are not yet known
The price range, share counts and proceeds are blank in this S-1, and management will have broad discretion over how the money is used. No dividends are expected.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

21 · How it got here

How did Anthropic get here?

2021
Milestone
Founded as a public benefit corporation
Seven co-founders, including Dario and Daniela Amodei, incorporated Anthropic in Delaware in Jan 2021.
2023
Milestone
Amazon and Google invest through notes
Both signed note purchase agreements in 2023; revenue that year was $41 million.
2024
Crisis
Authors sue over training data
The Bartz class action, filed in Aug 2024, alleged copyright infringement of books used to train models.
2025
Crisis
$1.5 billion copyright settlement
Anthropic agreed in Sep 2025 to settle Bartz for $1.5 billion, while disputing wrongdoing. FY2025 revenue reached $4.6 billion.
2026
Crisis
Clash with the Department of War
The S-1 says that in Feb 2026, in response to Anthropic's stated position on mass domestic surveillance and fully autonomous weapons, the President directed agencies to stop using its technology and the Secretary of War ordered a supply-chain risk designation.
2026
Milestone
Operating income in Q2 2026
Anthropic reported $974 million of GAAP operating income in Q2 2026.
2026
Milestone
IPO filing made public
After a confidential draft on Jun 1, 2026 and five amendments, Anthropic filed its public S-1 on Oct 26, 2026.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026; EDGAR filing history for Anthropic, PBC (CIK 0002130357): DRS Jun 1, 2026, five DRS/A amendments, S-1 Oct 26, 2026

22 · Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

Revenue was $16.3 billion in the six months to Jun 30, 2026, up from $1.2 billion a year earlier.
Anthropic reported $974 million of GAAP operating income in Q2 2026, and $3.9 billion of cash from operations in the first half of 2026.
Cash and short-term investments were $131.7 billion at Jun 30, 2026, against $6.2 billion of note principal.
More than 1,900 customers paid at least $1 million a year at Sep 30, 2026, and no single customer was over 10% of revenue for the nine months to that date.

What critics point to

The net loss was $80.7 billion in the six months to Jun 30, 2026, and the accumulated deficit was $132.9 billion.
Fixed or minimum compute commitments were about $265.6 billion at Jun 30, 2026, mostly non-cancelable.
Class A holders' votes are capped at 49.9%, the trust elects a board majority, and the company is a Nasdaq 'controlled company'.
Anthropic agreed to pay $1.5 billion to settle a copyright class action, other copyright suits are pending, and an appeals court upheld a supply-chain risk designation.
Dilution can come from note conversions, a 2,950 million-share equity plan and Public Benefit Issuances, and $23.7 billion of RSU expense would follow an IPO, per the S-1's Jun 30, 2026 example.

23 · What to watch next

What should you watch next for Anthropic?

Next event

S-1 amendment with the price range and share count

Date not announced yet.

Q3 2026 numbers
This S-1 gives customer counts to Sep 30, 2026 but leaves Q3 2026 revenue blank.
Total compute commitments
The S-1's total for contractual obligations is blank; an amendment may fill it.
Amazon note facility size
The S-1 gives two different figures for Amazon's 2026 note facility in different sections; an amendment may reconcile them.
Court rulings
The D.C. Circuit rehearing petition on the supply-chain risk designation, and the Concord I summary-judgment ruling.

24 · Key facts

Key facts about Anthropic

What does Anthropic do?: Anthropic, PBC develops the Claude AI models and sells access to them through its developer platform, apps such as Claude.ai and Claude Code, and the clouds of Amazon, Google and Microsoft, per its S-1 filed on Oct 26, 2026.
How does Anthropic make money?: In the six months to Jun 30, 2026, Anthropic earned $13.1 billion (80%) of its $16.3 billion revenue from usage-based pricing, mostly per token of text processed, and $3.2 billion from subscriptions.
Who are Anthropic's customers?: At Sep 30, 2026, Anthropic had more than 11,900 customers paying at least $100,000 a year. For the nine months to Sep 30, 2026, its five largest customers made up about 25% of revenue, and none was over 10%.
How big is Anthropic?: Anthropic's revenue was $4.6 billion in FY2025 (calendar 2025), with a net loss of $42.0 billion. In the six months to Jun 30, 2026, revenue was $16.3 billion and the net loss $80.7 billion.
Why is Anthropic's net loss so large?: Most of Anthropic's net loss is a non-cash charge for revaluing its convertible notes: $34.3 billion of the $42.0 billion loss in FY2025, and $72.4 billion of the $80.7 billion loss in the six months to Jun 30, 2026.
Who controls Anthropic after the IPO?: Per Anthropic's S-1 (Oct 26, 2026), a single Class F share held by the seven co-founders' Founder LLC carries 50.1% of votes, and the Long-Term Benefit Trust elects a majority of the board. All Class A votes are capped at 49.9%.
What is the Anthropic IPO?: Anthropic filed an S-1 with the SEC on Oct 26, 2026 to list Class A shares on Nasdaq under the proposed ticker ANT. The company and selling stockholders would sell shares; the share counts and price range were blank in that filing.

Source: Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026

25 · Sources and changes

Where every number on this page comes from

Sources (2 documents)

S1Anthropic, PBC Form S-1 registration statement (preliminary prospectus), filed Oct 26, 2026 · SEC EDGAR (filed by Anthropic, PBC; CIK 0002130357; accession 0001628280-26-067168) · Tier 1: company or exchange filing · Oct 26, 2026
S3EDGAR filing history for Anthropic, PBC (CIK 0002130357): DRS Jun 1, 2026, five DRS/A amendments, S-1 Oct 26, 2026 · SEC EDGAR (data.sec.gov submissions API) · Tier 1: company or exchange filing · Oct 27, 2026

Changes to this page (v1 · Oct 27, 2026)

v1 · Oct 27, 2026First version, based on the S-1 filed on Oct 26, 2026. (first version, based on the S-1)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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What does Anthropic do?

What is the Anthropic IPO?

What will Anthropic do with the money it raises?

What does Anthropic sell?

Claude models

Claude Platform

Claude Code

Claude.ai and Claude Cowork

Claude Enterprise and industry versions

What it does

What it does not do

Who pays Anthropic?

How does money flow through Anthropic?

Where does $100 of Anthropic's money go?

What does Anthropic need to run?

Computing power

Researchers and engineers

Training data

Outside capital

Why does Anthropic make money?

Since 2024, revenue has grown faster than computing costs, while long-term compute commitments have grown too.

Where does Anthropic sell?

How has Anthropic done?

Revenue

Net profit

Profit kept per $100 of revenue

Free cash flow

What do Anthropic's own measures show?

How much debt does Anthropic have?

Who owns Anthropic before the IPO?

Who runs Anthropic, and did they deliver?

Dario Amodei

Daniela Amodei

Krishna Rao

Reed Hastings

Christopher Liddell

Vas Narasimhan

Yasmin Razavi

What do Anthropic's governance filings show?

Flags to know about

How much does Anthropic rely on related parties?

What legal cases does the Anthropic offer document list?

What could go wrong for Anthropic?

Large losses, and profit may never come

Compute commitments far larger than revenue

Reliance on a few cloud partners and customers

Must keep building the most advanced models

Government action can cut off customers or models

Copyright and data lawsuits

Misuse of models and customer rule-breaking

More borrowing to fund compute

What risks does the Anthropic offer document flag?

Class A buyers have limited say

Controlled company exemptions

Public benefit duties can outweigh stockholder returns

Many sources of dilution

A large share-based pay charge at the IPO

Lock-up releases and future sales

No trading history and a volatile price

Key terms are not yet known

How did Anthropic get here?

Founded as a public benefit corporation

Amazon and Google invest through notes

Authors sue over training data

$1.5 billion copyright settlement

Clash with the Department of War

Operating income in Q2 2026

IPO filing made public

What do supporters and critics point to?

What supporters point to

What critics point to

What should you watch next for Anthropic?

Q3 2026 numbers

Total compute commitments

Amazon note facility size

Court rulings

Key facts about Anthropic

Where every number on this page comes from

Disclaimer