Anthropic is advancing toward an initial public offering with a target valuation above $2 trillion, according to an IPO prospectus obtained by Reuters. The filing shows a five-year-old company scaling revenue rapidly while taking on an unusually heavy capital burden.
Revenue surged in 2025, but losses widened sharply
The prospectus says Anthropic generated nearly $4.6 billion in revenue in 2025, a 12x increase from the previous year, reflecting rising enterprise demand for large language models.
Expenses climbed just as fast. Operating expenses reached $12.65 billion in 2025, pushing operating loss to more than $8 billion. Net loss came in at about $42 billion, with roughly $34 billion of that total tied to non-cash accounting charges linked to earlier financing instruments that were revalued as the company’s valuation increased.
Even excluding those financing-related non-cash accounting changes, the filing shows Anthropic still posted an operating loss above $8 billion.
Compute spending is at the center of the cost structure
Anthropic spent $7.33 billion on compute and infrastructure in 2025, three times the 2024 level. The filing says those costs accounted for more than half of overall operating costs, making compute and infrastructure investment the main driver behind the company’s losses.
To secure the resources needed to train and deploy advanced models, Anthropic disclosed procurement commitments totaling $518 billion over the coming years across cloud, computing, and infrastructure.
As of Dec. 31, 2025, the company held $20.28 billion in cash, cash equivalents, and short-term investments. That gives Anthropic a measure of liquidity for now, but the scale of continuing capital needs suggests it will remain dependent on long-term funding from public markets or strategic partners before it reaches break-even.
Customer concentration and competition remain key risks
The filing says nearly 25% of Anthropic’s 2025 revenue came from its top two customers, highlighting concentration risk. It also states that many major customers are not bound by long-term contracts, leaving room for them to reduce or end spending.
On competition, Anthropic is described as competing intensely with OpenAI for enterprise customers, technical talent, and policy influence. Internal research cited in the filing also says highly autonomous models still carry risks including code anomalies and information manipulation.
IPO timing and valuation are now central market questions
Market expectations put Anthropic’s IPO valuation above $2 trillion, more than double the $965 billion estimate from May 2026. The deal would also follow SpaceX’s June listing at a $1.77 trillion valuation and is expected to become a major reference point for how global capital markets price pure-play generative AI companies.
The input says the listing is expected after the November U.S. midterm elections. If that timeline holds, Anthropic’s debut will be watched closely as a benchmark for the commercial value investors assign to core generative AI businesses.