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Rallygoers in Perry, Georgia, voiced strong support for President Trump ahead of the midterms, with some emphasizing the importance of his endorsement as they continue getting to know his Senate pick, Rep. Mike Collins, R-Ga.

Ahead of what could be the largest public listing ever, Anthropic said revenue soared to $16.3 billion in the first half of the year, and it planned to spend $807 billion on A.I. infrastructure.

Tech’s worst-kept secret is finally out: Anthropic has filed its S-1 with the Securities and Exchange Commission, paving the way for an IPO. A reported investor road show could begin as soon as November 9, attempting to drum up interest befitting its targeted $1.5 trillion valuation.

In doing so, the company has opened its books, giving would-be investors their first look at its finances. And the figures are unprecedented. The company booked an $80.7 billion net loss on $16.3 billion in revenue, but operating losses are falling.

Around 250 customers pay the firm more than $10 million a year in contracts, while more than 10,000 pay at least $100,000. Its net revenue retention stands at around 900%. And every employee contributes $6.6 million to the company’s revenue, the kinds of numbers that any company would envy.

However, the S-1 filing also reveals plenty of potential problems ahead. Between 5 and 7 cents of every dollar Anthropic receives from customers comes from users the company doesn’t want on its platform and presumably intends to remove because they violate its terms of service or usage policies. Almost half of Anthropic’s revenue in the first six months of the year came through cloud marketplaces run by Amazon, Google, and Microsoft. Those firms are simultaneously its computing suppliers, business partners, and competitors.

The initial public offering will be a major test of the market’s appetite to invest in the promise and potential of artificial intelligence, ushering in the “put up or shut up” era for the technology.

“Anthropic’s IPO is shaping up to be a major test of investor appetite for AI, especially as it’s arriving at a particularly turbulent time for markets,” says Susannah Streeter, chief investment strategist at Wealth Club, a non-advisory investment service based in England.

Big numbers, big problems?

For years, investors have bought into AI’s potential to transform the economy, benefiting from ever-increasing valuations of companies across the AI ecosystem. Private investment in AI firms has increased 48-fold since 2013, surging to $290 billion last year from $131 billion in 2024. But those investors, both private and public, are banking on getting a return, and it’s far from certain they will. This weekend, Torsten Slok, chief economist at NYC-based asset manager Apollo Global Management, warned that AI has “delivered zero financial payoff for corporate America outside of tech.” (Slok declined to speak for this story.)

Slok explained that “the AI story will be decided in the S&P 493, not the Magnificent 7, and so far, there is no evidence that revenue growth and margins are improving outside the tech sector.”

Journalist and author Tae Kim, who runs the Key Context Substack, takes issue with the idea that AI should already be delivering measurable financial gains across the broader economy. He argues that the technology is still in its early stages, making such expectations premature. “A ridiculous statement and thesis because it’s a very myopic way of thinking about it,” he says.

Kim points to Anthropic’s extraordinary growth as evidence of the demand already taking shape. Its revenue rose 1,300% year over year, from $1.2 billion to $16.3 billion, while spending among existing customers has surged. “This is a major computing shift,” he says, comparing the arrival of AI to the transition from horses to cars, or from the abacus to spreadsheets on personal computers.

In Kim’s view, the enormous demand for computing power demonstrates just how eager businesses are to use the technology. The cost of renting Nvidia’s H100 GPUs, for instance, rose nearly 40% between October 2025 and March 2026, according to San Francisco-based research firm SemiAnalysis. Kim also points to shortages of the specialized chips and memory needed to run AI systems. Much of Micron Technology’s high-bandwidth memory output is already sold out for 2027, and shortages are expected to continue through 2028.

Yet others are more cautious, and the bear case is compelling, too. Anthropic’s net losses far outstrip its revenue. “There are some concerning, not unexpected, risk factors in the S-1, including compute,” writes Dan Ives, partner and senior managing director at New Jersey-based financial firm Yorkville Ives & Co. But “overall, the numbers are showing massive eye-popping growth from a broadening group of customers,” he adds. “The near-term losses are massive, but investors on the IPO will be laser-focused on the growth trajectory into 2027 and 2028 as the next phase of this AI revolution takes hold.”

NYU professor emeritus, cognitive scientist, and author Gary Marcus, a self-described AI skeptic, also believes the Anthropic flotation could mark a turning point for the future of AI. “Anthropic’s IPO is likely to be a big moment for generative AI,” he says. “People had originally pegged it at $2 trillion, but that was before the death of tokenmaxxing, the rise of Chinese models, and the deceleration of their rapid growth. It will be very interesting to see if the market is still up for that valuation at the IPO and the days that follow.”

Many of those risks are ones Anthropic itself acknowledges in its S-1 filing, including the possibility that cheaper Chinese models offering similar performance could undercut its business. And while its 900% net revenue retention figure suggests remarkable spending growth among existing customers, it doesn’t necessarily indicate how broadly that growth is distributed or how sustainable it will be.

Boom or bust?

The big question hanging over investors considering whether to back Anthropic is whether the AI boom echoes the dot-com bubble or represents a more enduring shift in technology. Kim believes such comparisons are misplaced, arguing that investors are still “suffering from PTSD” after the dot-com crash. Things are different this time, he says, because AI infrastructure is already heavily utilized, and chip supply is constrained by manufacturing capacity. That sets today’s AI boom apart from the overconstruction of fiber-optic networks during the internet boom, he says.

We may soon find out, not least because Anthropic isn’t the only AI company preparing to put its financial performance under the microscope. Rival OpenAI looks likely to launch its own IPO in 2027, with a valuation rivaling Anthropic’s. OpenAI is reportedly seeking to raise another $30 billion at a $1.25 trillion valuation. The investors OpenAI is courting are likely to overlap with those Anthropic hopes to attract, leaving skeptics even more worried that an already frothy bubble is about to burst.

Ultimately, the question isn’t simply whether investors will embrace Anthropic’s valuation on its first day of trading. It’s whether the remarkable growth fueling that valuation can eventually translate into sustainable profits, and whether AI’s economic impact will extend beyond the companies selling the technology. With Anthropic and potentially OpenAI entering the public markets, investors will have more opportunities to test those assumptions against actual financial results.

But for Kim, the future looks bright. “I don’t think this is going to end anytime soon,” he says. “I think we’re still very early. It’s early innings.”

Tech’s worst-kept secret is finally out: Anthropic has filed its S-1 with the Securities and Exchange Commission, paving the way for an IPO. A reported investor road show could begin as soon as November 9, attempting to drum up interest befitting its targeted $1.5 trillion valuation.

In doing so, the company has opened its books, giving would-be investors their first look at its finances. And the figures are unprecedented. The company booked an $80.7 billion net loss on $16.3 billion in revenue, but operating losses are falling.

Around 250 customers pay the firm more than $10 million a year in contracts, while more than 10,000 pay at least $100,000. Its net revenue retention stands at around 900%. And every employee contributes $6.6 million to the company’s revenue, the kinds of numbers that any company would envy.

However, the S-1 filing also reveals plenty of potential problems ahead. Between 5 and 7 cents of every dollar Anthropic receives from customers comes from users the company doesn’t want on its platform and presumably intends to remove because they violate its terms of service or usage policies. Almost half of Anthropic’s revenue in the first six months of the year came through cloud marketplaces run by Amazon, Google, and Microsoft. Those firms are simultaneously its computing suppliers, business partners, and competitors.

The initial public offering will be a major test of the market’s appetite to invest in the promise and potential of artificial intelligence, ushering in the “put up or shut up” era for the technology.

“Anthropic’s IPO is shaping up to be a major test of investor appetite for AI, especially as it’s arriving at a particularly turbulent time for markets,” says Susannah Streeter, chief investment strategist at Wealth Club, a non-advisory investment service based in England.

Big numbers, big problems?

For years, investors have bought into AI’s potential to transform the economy, benefiting from ever-increasing valuations of companies across the AI ecosystem. Private investment in AI firms has increased 48-fold since 2013, surging to $290 billion last year from $131 billion in 2024. But those investors, both private and public, are banking on getting a return, and it’s far from certain they will. This weekend, Torsten Slok, chief economist at NYC-based asset manager Apollo Global Management, warned that AI has “delivered zero financial payoff for corporate America outside of tech.” (Slok declined to speak for this story.)

Slok explained that “the AI story will be decided in the S&P 493, not the Magnificent 7, and so far, there is no evidence that revenue growth and margins are improving outside the tech sector.”

Journalist and author Tae Kim, who runs the Key Context Substack, takes issue with the idea that AI should already be delivering measurable financial gains across the broader economy. He argues that the technology is still in its early stages, making such expectations premature. “A ridiculous statement and thesis because it’s a very myopic way of thinking about it,” he says.

Kim points to Anthropic’s extraordinary growth as evidence of the demand already taking shape. Its revenue rose 1,300% year over year, from $1.2 billion to $16.3 billion, while spending among existing customers has surged. “This is a major computing shift,” he says, comparing the arrival of AI to the transition from horses to cars, or from the abacus to spreadsheets on personal computers.

In Kim’s view, the enormous demand for computing power demonstrates just how eager businesses are to use the technology. The cost of renting Nvidia’s H100 GPUs, for instance, rose nearly 40% between October 2025 and March 2026, according to San Francisco-based research firm SemiAnalysis. Kim also points to shortages of the specialized chips and memory needed to run AI systems. Much of Micron Technology’s high-bandwidth memory output is already sold out for 2027, and shortages are expected to continue through 2028.

Yet others are more cautious, and the bear case is compelling, too. Anthropic’s net losses far outstrip its revenue. “There are some concerning, not unexpected, risk factors in the S-1, including compute,” writes Dan Ives, partner and senior managing director at New Jersey-based financial firm Yorkville Ives & Co. But “overall, the numbers are showing massive eye-popping growth from a broadening group of customers,” he adds. “The near-term losses are massive, but investors on the IPO will be laser-focused on the growth trajectory into 2027 and 2028 as the next phase of this AI revolution takes hold.”

NYU professor emeritus, cognitive scientist, and author Gary Marcus, a self-described AI skeptic, also believes the Anthropic flotation could mark a turning point for the future of AI. “Anthropic’s IPO is likely to be a big moment for generative AI,” he says. “People had originally pegged it at $2 trillion, but that was before the death of tokenmaxxing, the rise of Chinese models, and the deceleration of their rapid growth. It will be very interesting to see if the market is still up for that valuation at the IPO and the days that follow.”

Many of those risks are ones Anthropic itself acknowledges in its S-1 filing, including the possibility that cheaper Chinese models offering similar performance could undercut its business. And while its 900% net revenue retention figure suggests remarkable spending growth among existing customers, it doesn’t necessarily indicate how broadly that growth is distributed or how sustainable it will be.

Boom or bust?

The big question hanging over investors considering whether to back Anthropic is whether the AI boom echoes the dot-com bubble or represents a more enduring shift in technology. Kim believes such comparisons are misplaced, arguing that investors are still “suffering from PTSD” after the dot-com crash. Things are different this time, he says, because AI infrastructure is already heavily utilized, and chip supply is constrained by manufacturing capacity. That sets today’s AI boom apart from the overconstruction of fiber-optic networks during the internet boom, he says.

We may soon find out, not least because Anthropic isn’t the only AI company preparing to put its financial performance under the microscope. Rival OpenAI looks likely to launch its own IPO in 2027, with a valuation rivaling Anthropic’s. OpenAI is reportedly seeking to raise another $30 billion at a $1.25 trillion valuation. The investors OpenAI is courting are likely to overlap with those Anthropic hopes to attract, leaving skeptics even more worried that an already frothy bubble is about to burst.

Ultimately, the question isn’t simply whether investors will embrace Anthropic’s valuation on its first day of trading. It’s whether the remarkable growth fueling that valuation can eventually translate into sustainable profits, and whether AI’s economic impact will extend beyond the companies selling the technology. With Anthropic and potentially OpenAI entering the public markets, investors will have more opportunities to test those assumptions against actual financial results.

But for Kim, the future looks bright. “I don’t think this is going to end anytime soon,” he says. “I think we’re still very early. It’s early innings.”

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