Anthropic Plans to Spend $518 Billion on Cloud and Data Centers. More Than $100 Billion Is Already Promised to Amazon.
The Claude maker's draft prospectus finally puts numbers on its largest bills. Can it afford the one it signed with the cloud giant?
Overview
A draft of Anthropic's initial public offering (IPO) prospectus, reported by Reuters on Monday, Sept. 28, puts a number on the company's spending plans. The artificial intelligence (AI) lab plans to spend $518 billion on cloud, computing and infrastructure obligations in coming years, according to the draft.
Amazon (NASDAQ:AMZN) shareholders already know where some of this money is headed. In April, the Claude maker committed more than $100 billion over 10 years to Amazon Web Services (AWS), Amazon's cloud computing segment. That one contract is around a fifth of the $518 billion.
Details
The draft also shows how the customer behind that contract is doing. It shows large losses. But I think it also shows revenue rising fast enough to make the AWS commitment look affordable.
Source
Originally published at www.fool.com.