AI firm Anthropic reports slower growth, increased expenses in Q3 filing

The company reported $17 billion in revenue for the three months ending September 30, a substantial increase from $11.6 billion in the second quarter and $1.4 billion a year prior. This latest information was not included in the initial IPO prospectus.

Revenue growth slowed to approximately 47% in the third quarter, a decrease from the 144% growth seen in the previous three-month period. This slowdown coincides with a rise in operating expenses, which climbed to $17.5 billion from $10.6 billion in the second quarter.

As a result of these increased expenses, Anthropic recorded an operating loss of $567 million, reversing a $974 million operating profit in the prior quarter. The company attributes this loss primarily to the cost of computing resources acquired under short-term agreements, which are currently more expensive than those secured through longer-term contracts. Additionally, $2 billion in non-cash charges related to an employee donation matching program contributed to the loss.

Adjusted operating margins decreased to 15% from 19% in the second quarter, largely due to the higher cost of short-term compute. Despite this, Anthropic maintains profitability on an adjusted basis, with profits slightly increasing.

The company has committed to approximately $895.4 billion in spending, primarily for compute and infrastructure, reflecting efforts to secure long-term data center capacity. A significant portion of this investment is directed towards Anthropic Direct, a dedicated infrastructure intended to replace expensive short-term compute with more affordable long-term solutions.

The filing also suggests potential pricing pressures within the AI market, with Anthropic experiencing a $600 million reduction in revenue due to price reductions and contractual discounts.

As of September 30, Anthropic held $146.6 billion in liquidity. The company’s net loss for the quarter totaled $23.3 billion, largely attributable to an accounting charge related to the increased value of its convertible notes.