Anthropic's blockbuster share listing - 5 surprising things we now know

ByKali Hays

The 335-page document included fresh details of how the Claude chatbot owner makes money, what it spends that money on and who it is controlled by.

Anthropic also detailed some of the risks it claimed AI technology poses, including how it could take human lives. That information sat alongside the many purported benefits of the technology.

1. Armageddon is an occupational hazard

Anthropic's "risk factors" were unique, also disclosing how the AI technology it is developing could doom humanity as a whole.

"Sufficiently advanced AI systems could, if not developed, deployed, and operated with appropriate safeguards, oversight, and security measures, pose catastrophic or existential risks to humanity," Anthropic said.

It noted that less than a year ago, a hacking group Anthropic believed to be sponsored by China "manipulated" Claude to successfully intrude on a number of institutions, including large technology companies, financial institutions, chemical manufacturing companies and government agencies.

One of the most significant risks to that ability is Anthropic's access to infrastructure it needs, including computer chips and data centres, to build, train and operate the models that underpin its technology.

2. The company is haemorrhaging cash

The company is widely expected to debut with a market valuation of $2 trillion or more, making it the largest stock listing in history. But the figure will be heavily influenced by its financial performance.

The company's overall revenue was $16.2bn for the six-month period. Revenues are rising rapidly, but the firm has a long way to go before it breaks even.

Troy Hooper, co-head of equity capital markets at Mergermarket, said Anthropic's revenue growth is "exceptional". But investors are "less forgiving" of tech companies promising huge future returns than they were even months ago, he added.

"As a result, investors do not yet have a clear view of Anthropic's underlying profitability or whether its rate of cash generation is sufficient to support the business as it scales," Hooper added.

3. But luckily it has plenty of cash on hand

At $131.6bn, almost all of its cash in hand is defined as "working capital", meaning it can use the money to fund its operations day-to-day.

Anthropic's costs could rise as it faces fierce competition for top staff and computing power from other AI giants.

Hooper said such large costs are expected to grow. Even with this kind of cash, it won't be enough to maintain its business growth.

4. Anthropic relies on a few big customers

Anthropic sees boundless ways it can sell its technology to customers.

A large portion of its current business comes from just 250 major enterprise customers, which it says have paid it at least $10m in the past year.

Michael Monaghan, portfolio manager of Founder ETF, pointed out that "many top Anthropic customers have no long-term contract".

The company's level of business concentration leaves Anthropic dependent on a small fraction of its paying customers to support its growth, with no guarantee it will continue.

Anthropic also has enterprise relationships with the likes of Google and Amazon, both of which are also investors in the company "and competitors", creating potential business conflicts in the future, Monaghan noted.

Part of its growth strategy is offering Claude tools for free before working to "convert these users into paying customers over time".

5. AI promises 'extraordinary' benefits to the world

For all of the risks Anthropic has said AI poses, it also reiterated its claim AI will produce an "extraordinary" amount of good.

That mission is defined as: "The responsible development and maintenance of advanced AI for the long-term benefit of humanity."

Such hypothetical benefits include progress in healthcare, like the development of bespoke treatments for illnesses and improved disease detection, tailored education and legal advice, and making more efficient power grids and batteries.

"Ultimately, we believe frontier AI will help drive global economic growth," the company said.