From The Next Web · Cristian Dina · · 1m 20s
Anthropic's compute bill outpaces revenue growth
The AI company's infrastructure costs hit 58% of revenue last quarter, forcing it to rely on supplier financing to fund its expansion.
In brief
The AI company's infrastructure costs hit 58% of revenue last quarter, forcing it to rely on supplier financing to fund its expansion. Anthropic's compute costs grew faster than revenue in Q3, reaching 58% of revenue, as the company relies on supplier financing deals to fund its expansion. Originally reported by The…
Compute costs outpace revenue
Anthropic's compute spending reached 58% of revenue in Q3, up from 48% the quarter before. Revenue rose to seventeen billion dollars from eleven point six billion dollars.
Short-term compute costs more
Anthropic's compute bill hit nine point nine billion dollars in the quarter. About half came from short-term commitments that cost significantly more than comparable compute under multi-year deals.
“"$5.0 billion of compute under short-term commitments, which currently costs significantly more than comparable compute procured under our multi-year commitments."”
Broadcom backs sixty-three billion dollar deal
Bank of America, Citi, Morgan Stanley and Blackstone will fund a company that buys Broadcom chips and leases them to Anthropic. Broadcom agreed to absorb losses up to about forty-three billion dollars if Anthropic defaults.
AMD and convertible notes add funding
AMD committed to buy up to five billion dollars of Anthropic shares as its GPUs reach deployment milestones starting in 2027.
Supplier financing funds expansion
Anthropic had one hundred forty-six point six billion dollars in cash, short-term investments and available bank credit at the end of September. Supplier financing supports construction but ultimately requires revenue from end customers.
“"Supplier financing supports construction; ultimately, paying for it requires revenue from end customers."”
The key point
Anthropic's compute costs grew faster than revenue in Q3, reaching 58% of revenue, as the company relies on supplier financing deals to fund its expansion.
