Sep 30, 2026 · 16 min
Listen from 6:08
Listen at 6:08
Anthropic’s losses expose the economics of AI scale
Monologue: Anthropic Lost $8bn In 2025, Was A Worse Business Than OpenAI
Anthropic’s reported losses and high cost of revenue raise broader questions about whether frontier AI businesses can become financially sustainable.
- 1Anthropic reportedly lost roughly $8 billion in 2025 while spending $2.75 to generate each dollar of revenue.
- 2Ed Zitron argues that Anthropic’s economics look weaker than OpenAI’s, despite both competing to build frontier AI systems.
- 3The leaked S-1 increases pressure to release the complete filing so investors and counterparties can assess the company’s condition.
Don't miss
The episode crystallizes its argument around Anthropic reportedly spending $2.75 for every dollar of revenue while losing roughly $8 billion in 2025.
The brief
Ed Zitron changes course after a leaked Anthropic S-1 reveals financial details he argues deserve scrutiny, especially from investors and the company’s economic counterparties.
The disclosures reportedly show Anthropic lost roughly $8 billion in 2025 and spent $2.75 to generate each dollar of revenue, putting its business model under pressure.
Zitron compares Anthropic unfavorably with OpenAI, framing the gap between frontier AI ambition and financial performance as a question of business sustainability.
The episode’s central demand is straightforward: release Anthropic’s complete S-1 so outside stakeholders can evaluate the company with more than leaked figures.
What was said on this episode
10 statements · 10 negative
Anthropic was a worse business than OpenAI in 2025.
“This, shockingly, means that Anthropic was a worse business than OpenAI in 2025”
Listen at 5:45
Anthropic’s economics have deteriorated over the past two years.
“Anthropic's economics have decayed for the last 2 years”
Listen at 6:58
Anthropic cannot presently afford its $518 billion compute commitments.
“I don't see how this company becomes one that can afford its $518 billion in compute commitments”
Listen at 8:27
Anthropic will likely rely on junk-grade or high-yield debt if it goes public.
“This company will, if allowed to go public, likely lean on the very same junk-grade or high-yield debt”
Listen at 8:38
Anthropic may issue $50–$100 billion of such debt annually.
“at volumes of somewhere between $50 billion and $100 billion a year”
Listen at 8:47
Anthropic will not become technology’s future, Google, or Microsoft.
“Anthropic is not the future of technology, nor is it the next Google, nor is it the next Microsoft”
Listen at 8:55
Anthropic is a cloud software company with volatile products and economics.
“Anthropic is a cloud software company with volatile products and economics”
Listen at 9:08
Dario Amodei is manipulative and deceptive.
“Dario Amadei is a manipulative and deceptive person”
Listen at 9:27
Those responsible for misleading AI financial reporting should face imprisonment.
“Someone needs to go to jail for this”
Listen at 10:08
OpenAI and Anthropic are economic disasters waiting to happen.
“We must treat OpenAI and Anthropic as what they are— economic disasters waiting to happen.”
Listen at 10:40
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.