Anthropic’s S-1 embodies all the contradictions of the AI boom, and the questions about what happens next

Anthropic's S-1 filing reveals the contradictions that epitomize the AI boom. The company, valued at $965 billion, describes AI as "one of the most consequential technologies in human history" while acknowledging its "existential risks to society." AI promises to tackle everything from reducing DMV wait times to potentially curing cancer, but also poses "catastrophic risks."

Anthropic's revenue for the first half of 2026 is projected at $16.29 billion, but the company is losing $80.7 billion in the same period. This financial discrepancy stems from an accounting charge related to convertible notes. The company's reliance on compute resources is evident, with the word "compute" appearing over 580 times in the document. In fact, Anthropic has pledged up to $120.5 billion for compute resources between now and 2029, which exceeds the disclosed amounts in SpaceX's S-1.

The company's spending on compute in the first half of 2026 alone was around $9.7 billion, and it plans to spend up to $567 billion on compute overall. Additionally, Anthropic spent over $3 billion on marketing in H1 2026, a larger portion of the budget than one might expect. The filing highlights the company's challenges in building, expanding, and deploying its sales and marketing organization, as well as the difficulty in hiring, retaining, training, and motivating its sales personnel.

This reflects the company's limited experience in these areas, which could impact its revenue growth and overall performance.