Anthropic Revenue Growth Faces IPO Scrutiny

Anthropic told prospective investors that third-quarter revenue reached $16.8 billion, up 45% from the prior quarter, and reported positive cash flow, an 85% gross margin and a second consecutive quarter of adjusted profitability. It also said it generated $1.70 in revenue for every dollar spent on computing, though its costs and accounting remain unclear; reports differ on whether annualized revenue will exceed $100 billion by year-end. The company has confidentially filed IPO paperwork and is preparing for a possible November offering, with bankers reportedly discussing a $1.8 trillion to $2 trillion valuation and a raise exceeding $100 billion, but its full financial details have not been made public. New York City Comptroller Mark Levine has urged Anthropic to pause its IPO until it addresses AI safety, governance and development risks, including potentially catastrophic risks identified by the company’s leadership. The city’s pension funds have about $7 million of private exposure to Anthropic and could become broader shareholders if its stock enters indices they track. Questions about compute commitments and sustainable AI returns are also weighing on investor sentiment, with one analysis pointing to Taiwan Semiconductor shares falling despite record earnings as a sign of shifting sentiment toward AI-related stocks.