Anthropic's hidden debt could reach $90 billion as largest ever IPO looms

Anthropic, the AI startup, has filed for an IPO that could become the largest in history. Bloomberg reports the company plans to spend nearly $90 billion on servers, infrastructure, and power over the coming years. This figure far exceeds the $1.175 trillion in liabilities currently reported on its balance sheet. Financial disclosures reveal $1.12 trillion in cash, but also highlight significant off-balance-sheet obligations, including future lease commitments and purchases of data centers, power, and GPUs. These hidden debts have raised concerns among investors, as similar patterns have been observed in companies like Alphabet and Meta. Anthropic has not commented on the scale of its commitments, stating it plans to fund these investments through increased revenue and fundraising. The IPO has sparked market volatility, with shares of Amazon, Alphabet, and Microsoft recently declining due to investor caution over AI spending. Financial filings show that Anthropic’s liabilities include both on-balance-sheet obligations and off-balance-sheet commitments, which are not immediately visible to investors. This practice has led to worries about the true financial health of AI firms, as their spending on infrastructure and hardware continues to grow. While the company has not provided specific details on its debt structure, the IPO filing suggests a significant financial commitment to the future of AI development. The market reaction indicates that investors are increasingly wary of the long-term costs associated with scaling AI technologies, even as companies push forward with ambitious expansion plans.