Anthropic’s cloud partnerships are getting messy
Anthropic is reportedly struggling to secure enough compute from cloud providers that increasingly view it as a competitor, even as its infrastructure spending balloons ahead of a planned November IPO.
Anthropic is facing challenges in securing sufficient cloud capacity from major cloud providers, AWS, Google, and Microsoft, who are increasingly perceiving the company as a rival rather than a customer, according to a leaked S-1 filing to The Wall Street Journal. The document reveals that Anthropic anticipates spending over $750 billion on cloud contracts, including ongoing negotiations.
Despite this, the company's cloud investments are still insufficient. In response, Anthropic is establishing its own data centers and collaborating with third-party operators, but the latter's limited operating history raises concerns about their reliability compared to the hyperscalers.
The financial strain is evident with Anthropic recording an $80.7 billion net loss in the first half of the year, while generating $16.3 billion in revenue. A mere two customers contribute to about a fifth of the sales, as reported by The Wall Street Journal. The company's cloud spending comes as it discloses that third-quarter revenue has risen to $16.8 billion, marking a 45% increase from the previous quarter. Anthropic is planning an IPO for November.
The leaked filing also highlights potential legal risks, warning that Anthropic could be held accountable for damages resulting from harmful AI behavior, exceeding available insurance coverage. Additionally, the company has cautioned prospective investors about the financial impact of such liabilities. However, Anthropic has not yet commented on the matter to TechCrunch.
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