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US judge blocks Pentagon's Anthropic blacklisting
August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Government * Constitutional Law * Civil Rights * Public Policy Jack Queen Thomson Reuters Jack Queen covers major lawsuits against the Trump administration involving urgent questions of executive power and how their resolution could affect the law and the legal profession in the years to come. Previously, he covered criminal and civil cases against Trump during the interim of his presidential terms, including gavel-to-gavel coverage of his historic hush money trial in New York and his civil fraud trial, which ended in a half-billion-dollar judgment. Jack has also covered high-profile defamation cases including the Dominion Voting Systems' lawsuit against Fox News, which settled for $787 million after intense pretrial litigation. Based in New York, he specializes in breaking news as well as analysis, explainers and other explanatory reporting.
Anthropic planned, then abandoned US$7 billion purchase of AI chip startup MatX: sources
[SAN FRANCISCO] Anthropic discussed buying artificial intelligence chip startup MatX for roughly US$7 billion, seeking to accelerate efforts to develop custom hardware for its fast-growing AI business, two people briefed on the matter told Reuters. The merger talks, which a third person said have evolved into a discussion about a partnership, underscore the AI lab's ambition to secure the resources and talent needed to build its own chips. The goal is to help Anthropic accelerate its in-house chip development. Reuters is reporting on the discussions for the first time but could not learn why the talks are no longer active. MatX, founded by former Google tensor processing unit (TPU) engineers, is now seeking to raise new capital at a valuation of about US$4 billion, one of the people said, requesting anonymity to discuss private matters. Anthropic declined to comment on deal talks with MatX. MatX did not respond to a request for comment. Chip plans on road to IPO As Anthropic scales its Claude family of AI models, the company is looking to produce hardware that can fulfill its voracious appetite for data crunching and reduce its reliance on chips produced by Nvidia. Anthropic, which is expected to list in 2026, has hired engineering and executive talent to accelerate the chip design process, which could take years. Anthropic's IPO, expected months after SpaceX went public with a US$1 trillion valuation, will chase a valuation of US$2 trillion, which hinges on a 2028 revenue figure of as much as US$200 billion, Reuters reported earlier in August. Anthropic said it is expanding an in-house silicon team to design custom chips that will allow Claude models to run faster and more efficiently. It also plans to keep a multi-chip approach by working with providers from Nvidia to Google. Designing chips is expensive and time-consuming. It can take a year or more to produce a viable piece of hardware, and design costs for a single generation run in the hundreds of millions of dollars. An acquisition of an AI chip startup such as MatX would give Anthropic in-house design expertise and could help lower costs over the longer term, the people said. MatX has been working on a chip that would be useful for building large AI models in a process called training. Anthropic plans to spend tens of billions of dollars to rent computing power from cloud providers and also plans to buy chips directly. It plans to buy US$36 billion worth of Google's AI chips, and signed a US$45 billion deal to rent AI cloud computing power from Nscale. It agreed to pay SpaceX US$1.25 billion per month through May 2029 for computing capacity across its data centre clusters. D with other AI chip startups The discussions with MatX also suggest Anthropic may be interested in producing a training chip, while other chip startups and rival OpenAI pursue processors better suited to generating responses from chatbots, a process known as inference. Anthropic could elect to produce an inference chip as well, the sources said. In recent weeks, Anthropic held meetings with a range of AI chip startups. It has not yet elected to make an acquisition. The meetings are an attempt by Anthropic's engineers and executives to understand the current range of chip design approaches. On Aug 22, Anthropic hired Google chip veteran Amir Salek as part of the company's push into hardware. In June, the AI lab hired former OpenAI chip engineer Clive Chan who worked on the OpenAI chip unveiled earlier in 2026. The leading AI labs such as Anthropic and OpenAI have become increasingly focused on custom chips, which can be tailored to their models and workloads. Through this, they hope to create significant performance and economic advantages. At a conference on Wednesday (Aug 26), OpenAI boasted that its first custom chip called Jalapeno outperformed a similar processor made by Nvidia. OpenAI executives noted that the chip was more energy efficient in performing inference calculations. Making a custom chip may also help Anthropic hedge against the tight supply of Nvidia's processors, which Nvidia said in a conference call on Wednesday would be in short supply through 2027. Google has developed TPUs, while Amazon has built its Trainium and Inferentia chips. Anthropic was one of the first companies to run its models on hardware from several vendors including Nvidia, Google and Amazon. The company has been seeking more computing capacity to meet surging demand for its models, including through a deal with SpaceX to use its Colossus 1 facility, which houses more than 220,000 Nvidia chips. REUTERS
US judge blocks Pentagon's Anthropic blacklisting
August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
US judge blocks Pentagon's Anthropic blacklisting
Add Yahoo as a preferred source to see more of our stories on Google. August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
US judge blocks Pentagon's Anthropic blacklisting
Add Yahoo as a preferred source to see more of our stories on Google. August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
US judge blocks Pentagon's Anthropic blacklisting
August 27: A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts.
US Judge Blocks Pentagon's Anthropic Blacklisting
August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
US judge blocks Pentagon's Anthropic blacklisting
Add Yahoo as a preferred source to see more of our stories on Google. August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
US judge blocks Pentagon's Anthropic blacklisting
August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)
Anthropic Orders Remote Work Amid AI Safety Strike Threats from Staff
Anthropic has instructed its employees to work remotely as the company braces for potential security-related industrial action that could disrupt operations. The directive, which emerged this week, reflects growing tensions between the artificial intelligence developer and segments of its workforce concerned about safety protocols and oversight mechanisms. According to a report published by TechRadar, the move stems from credible intelligence suggesting that certain staff members might initiate strikes focused on security vulnerabilities. These actions could range from coordinated walkouts to more targeted disruptions aimed at highlighting perceived shortcomings in how the company manages risks associated with its advanced models. Anthropic, known for developing the Claude family of large language models, has positioned itself as a leader in responsible AI development, yet internal disagreements appear to have reached a boiling point. The decision to shift to remote work serves multiple purposes. First, it reduces the physical presence of employees in shared office spaces, thereby limiting opportunities for organized gatherings that could escalate into formal protests or work stoppages. Second, it allows the company to maintain core functions through distributed systems while monitoring the situation from a distance. Third, the policy signals to both internal teams and external observers that leadership takes the threat of disruption seriously without immediately resorting to disciplinary measures. Sources familiar with the matter indicate that the underlying grievances center on how Anthropic evaluates and mitigates risks tied to its AI systems. Employees have reportedly expressed frustration over what they see as insufficient transparency in safety testing procedures, particularly regarding potential misuse of models in areas such as cybersecurity, biological research, and autonomous decision-making. Some staff members argue that current evaluation frameworks do not adequately account for emerging threats that could arise as model capabilities expand. This situation highlights broader challenges facing the AI industry as organizations scale rapidly. Companies like Anthropic must balance aggressive innovation timelines with the need to address legitimate employee concerns about long-term societal impacts. The remote work order, while temporary, underscores the difficulty of maintaining cohesion when fundamental questions about safety collide with business objectives. Anthropic has built its reputation on constitutional AI principles, a framework designed to embed ethical guidelines directly into model training. Yet even with these safeguards, internal critics maintain that more independent oversight is required. The possibility of security-focused strikes suggests that a portion of the workforce believes current practices fall short of the standards the company publicly promotes. By asking staff to work from home, executives appear to be buying time to engage in dialogue while preventing any immediate operational paralysis. The timing of this development coincides with heightened scrutiny across the technology sector. Governments worldwide are drafting regulations that demand greater accountability from AI developers, and investors are paying closer attention to governance structures. Any public disruption at a prominent firm like Anthropic could influence policy discussions and affect funding environments for similar ventures. Remote work policies have become standard tools for technology companies facing internal unrest. During the pandemic, most organizations discovered that many roles could function effectively outside traditional office settings. Anthropic's current directive builds on that experience, allowing continuity in research, coding, and model evaluation activities. However, the move also carries drawbacks. Spontaneous collaboration that often sparks breakthroughs may diminish, and team morale could suffer if the underlying disputes remain unresolved. Employees involved in the potential action have not publicly detailed their exact demands, but patterns from similar episodes at other AI laboratories suggest several common themes. These typically include calls for slower release cycles to permit thorough safety assessments, greater representation of safety specialists in high-level decision-making, and clearer channels for whistleblowers to raise alarms without fear of retaliation. Whether Anthropic will accommodate such requests remains uncertain, though the remote work instruction demonstrates a willingness to adapt operational tactics in response to staff sentiment. The company's leadership has consistently emphasized its commitment to developing AI that benefits humanity. Dario Amodei, Anthropic's chief executive, has spoken at length about the importance of aligning advanced systems with human values. Yet translating those aspirations into concrete practices that satisfy all stakeholders has proven complex. The current episode reveals that even organizations explicitly founded on safety priorities can encounter internal friction when scaling. Technical teams at Anthropic continue to refine Claude's capabilities, with recent versions demonstrating improved reasoning and reduced hallucination rates. These advances, while impressive from a performance standpoint, also amplify concerns about dual-use potential. A model that excels at scientific reasoning could theoretically assist in developing harmful agents if proper guardrails are absent. Staff members attuned to these risks may feel an ethical obligation to press for stronger controls, even if doing so risks career consequences. By implementing a work-from-home policy, Anthropic has effectively lowered the temperature of immediate confrontation. Office environments often facilitate rapid organization of collective action, whereas distributed teams require more coordination to achieve similar momentum. This breathing room could allow human resources and executive teams to conduct individual conversations aimed at understanding specific grievances. At the same time, the company must remain vigilant against cyber threats that could exploit the shift to remote access. Security considerations extend beyond industrial action. As an AI developer handling sensitive training data and proprietary architectures, Anthropic maintains stringent information security standards. The remote work directive likely includes updated protocols for virtual private networks, multi-factor authentication, and data encryption to prevent leaks during the transition. Any lapse could compound existing tensions if sensitive materials reached unauthorized parties. Industry analysts suggest that this episode may foreshadow similar conflicts at other frontier AI laboratories. As models approach capabilities that could reshape entire economic sectors, the humans building them increasingly wrestle with questions of responsibility. The strikes contemplated at Anthropic represent one mechanism through which these concerns manifest. Other organizations might face comparable pressure as awareness grows about the stakes involved. Anthropic's response also carries implications for recruitment. The company has attracted talent partly because of its stated focus on safety. If prospective employees perceive that internal dissent is handled through remote work mandates rather than substantive policy changes, some candidates may reconsider joining. Conversely, if the situation leads to meaningful reforms, Anthropic could emerge with stronger internal alignment and an even clearer safety-focused identity. For now, the majority of staff appear to be complying with the remote directive while continuing their assigned tasks. Model training runs, research papers, and customer support functions persist, albeit through digital channels. This continuity demonstrates the resilience of modern technology workplaces, where physical location often matters less than network connectivity and access to cloud resources. The situation bears watching as negotiations or further developments unfold. Should the threatened security strikes materialize, they would represent a notable moment in AI industry relations, potentially setting precedents for how companies address employee activism on existential risk topics. If the remote arrangement successfully diffuses tensions, it might become a template for managing similar episodes elsewhere. Observers outside the company speculate about the scale of internal disagreement. Public statements from Anthropic have remained measured, avoiding direct acknowledgment of strike risks while reiterating dedication to responsible development. This careful communication strategy aims to reassure partners, users, and investors that core operations face no immediate jeopardy. Meanwhile, the AI safety community watches with interest. Many researchers have long advocated for greater openness about the limitations and hazards of current systems. The possibility that Anthropic employees might take collective action to demand such openness adds weight to those calls. Whether through strikes or quieter advocacy, the pressure for enhanced safety measures appears unlikely to dissipate. As weeks progress, both leadership and concerned staff will need to find common ground. The remote work period provides an opportunity for reflection and structured discussion without the immediate pressure of shared physical spaces. Success depends on whether both sides can move beyond positional bargaining toward shared understanding of acceptable risk levels in advanced AI development. The episode serves as a reminder that organizations at the forefront of powerful technologies must continually earn the trust of their own teams. Technical excellence alone proves insufficient when fundamental questions about direction and oversight remain contested. Anthropic's handling of this challenge will likely influence not only its internal culture but also perceptions across the broader artificial intelligence field. Ultimately, the company's ability to address these security concerns while maintaining innovation momentum will determine its trajectory. The remote work instruction represents a tactical adjustment rather than a strategic retreat. How Anthropic builds on this moment, through policy refinements or enhanced dialogue, will shape its standing among employees, regulators, and the public for years to come. The coming days and weeks promise to reveal whether the current tensions subside or evolve into more significant organizational changes.
Salesforce Share Price Jumps Gains On Growth Outlook, Anthropic Partnership
Salesforce reassured investors that it can compete successfully in the AI era. Salesforce Inc. jumped in extended trading after the software company gave an outlook for strong revenue expansion and deepened its partnership with Anthropic PBC, reassuring investors that it can compete successfully in the AI era. Sales will be about $11.5 billion in the fiscal third quarter, which ends in October, Salesforce said Wednesday in a statement. That's just ahead of analysts' average estimates, according to data compiled by Bloomberg. Current remaining performance obligations - a measure of future sales - will increase about 14%, also ahead of the average estimate of 13% growth. The company expects revenue to accelerate in the second half of the year, even without the impact of acquisitions, Chief Financial and Operating Officer Robin Washington said in the statement. Net orders are at the strongest they've been in four years, she said. The leading maker of customer management software is under pressure to prove it can thrive against competition from artificial intelligence companies and products. Agentforce, its AI tool meant to handle business tasks without human oversight, is on track to contribute about $1.5 billion in revenue this year, Salesforce said Wednesday. That's an increase from the $1.2 billion reported in the prior quarter. The company also announced an expanded partnership with Anthropic, the maker of the AI model Claude. It will integrate Salesforce's products within Claude, allowing sellers to access information on their customers and sales cycles with the AI app. When customers access Salesforce data from Claude, it will run up consumption bills with both companies. This integration should help push Salesforce customers toward higher-tier plans, said Mike Spencer, Salesforce head of finance, in an interview. Revenue gained 11% to $11.3 billion in the fiscal second quarter, which ended July 31, in line with analysts' estimates. Profit, excluding some items, was $5.90 a share. The results were "encouraging," wrote Rebecca Wettemann, an analyst at Valoir. "Salesforce needed to beat the numbers, but also the narrative around AI eating its business." The shares gained more than 12% in extended trading after closing at $205.62. The stock had dropped 38% this year through July 24, but had rebounded 26% since then through Wednesday's close. Chief Executive Officer Marc Benioff started a conference call after the results were released by addressing "skeptics" who believe that AI will lead customers to abandon Salesforce or negotiate for lower prices. Instead, attrition is near record lows and contract terms are improving for Salesforce, Benioff said. "This nonsense of this SaaSpocalypse, I think it's time to stop," Benioff said, referencing the stock meltdown earlier this year for software-as-a-service companies such as Salesforce. Benioff isn't the only software leader who has pushed back on earnings calls in an attempt to shake investors' negativity. Peers from ServiceNow Inc. to Oracle Corp. have been trying increasingly aggressive strategies to address the sentiment. In June, Salesforce announced it would acquire AI startup Fin for $3.6 billion. The deal is expected to help the company bolster its customer service AI offerings and better compete against Sierra, a startup founded by Bret Taylor, OpenAI chairman and a former co-chief executive officer at Salesforce. (This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.) Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories -- On NDTV Profit.
Salesforce raises annual revenue forecasts, expands AI partnership with Anthropic
Aug 26 (Reuters) - Salesforce lifted its full-year revenue forecast and announced an expanded partnership with AI giant Anthropic on Wednesday, sending the enterprise software company's shares up 14% in extended trading. The companies' new "Claudeforce" initiative will integrate Anthropic's Claude AI models across Salesforce's workplace applications, building on their June partnership where an AI agent was added to the business software company's Slack app. Salesforce has been gaining traction with AI-powered tools and autonomous agents that can automate sales, service, and marketing tasks - an area the company sees as a major growth driver for the future. "We're seeing incredible demand for our AI and data products, with annual recurring revenue about to cross $4 billion," said CEO Marc Benioff. Products such as Headless 360 and Slackbot have created new ways for users to access traditional Salesforce applications and data, helping customers extract more value from their information, said Rebecca Wettemann, CEO of industry analyst firm Valoir. The company now expects fiscal 2027 revenue between $46.1 billion and $46.4 billion, compared with its prior outlook range of $45.9 billion to $46.2 billion. It also raised its annual adjusted earnings per share forecast to be between $16.67 and $16.71, reflecting a reduction in share count, from its earlier outlook range of $14.06 to $14.12 apiece. Salesforce sees third quarter revenue in the range of $11.42 billion to $11.5 billion, slightly above analysts' estimates of $11.41 billion. Revenue for the second quarter ended July 31 grew 11% to $11.35 billion, compared with analysts' expectations of $11.32 billion. (Reporting by Juby Babu in Mexico City; Editing by Leroy Leo) Copyright Reuters or USA Today via Reuters Connect This story was originally published August 26, 2026 at 2:14 PM.
Salesforce raises annual forecasts, expands AI partnership with Anthropic
Aug 26 : Salesforce lifted its annual revenue and profit forecasts on Wednesday and rolled out a new plug-in combining its capabilities with Anthropic's Claude AI models, sending its shares up 14 per cent in extended trading. Dubbed "Claudeforce", the initiative marks an expansion in the companies' partnership, first struck in June, and comes as Salesforce grapples with deeply negative sentiment on software stocks as investors worry about the threat from AI disruption. Salesforce, which is also an investor in Anthropic, recorded a $2.53-per-share gain on an adjusted basis from its strategic investments in the second quarter, which partly helped the company's adjusted earnings more than double to $5.90 per share. The EPS was also boosted by a reduction in outstanding shares due to share buybacks, and strong operational performance. Salesforce has been gaining traction with AI-powered tools and autonomous agents that can automate sales, service, and marketing tasks -- an area the company sees as a major growth driver for the future. Revenue for the quarter ended July 31 grew 11 per cent to $11.35 billion. The company now expects fiscal 2027 revenue between $46.1 billion and $46.4 billion, compared with its prior outlook range of $45.9 billion to $46.2 billion. Salesforce's raised annual revenue guidance is driven by continued momentum in Agentforce, Data 360 and Slack, which are offsetting continued volatility in overall license revenue, finance chief Robin Washington said on a post-earnings call. It also reflects anticipated contribution from the expected closings of its Contentful and Fin acquisitions, announced in June, in the coming weeks. "Some big deals announced in the last quarter are driving the numbers, but so is greater availability of more prepackaged, easier-to-deploy AI agents," said Rebecca Wettemann, CEO of industry analyst firm Valoir. Salesforce also raised its annual adjusted earnings per share forecast to be between $16.67 and $16.71, reflecting a reduction in share count, from its earlier outlook range of $14.06 to $14.12 apiece.
Anthropic to rent AI computing power from Nscale for $45 billion, source says
Aug 26 (Reuters) - Anthropic will spend $45 billion to rent AI cloud computing power from Nscale's West Virginia data center campus, a person familiar with the matter said on Wednesday. The move comes as the AI startup looks to secure capacity to meet an anticipated surge in demand for products such as its AI coding tool, Claude Code. Nscale, a cloud infrastructure provider, will deploy Nvidia's new Vera Rubin chips to support Anthropic's computing needs, the person said. The six-year agreement represents about 460 megawatts of power capacity. Anthropic has moved aggressively in recent months to overcome capacity constraints for its services. It agreed in May to rent the full computing power of SpaceX's Colossus 1 facility in Memphis, which houses more than 220,000 Nvidia processors and 300 megawatts of new capacity. Anthropic declined to comment. Bloomberg News first reported the development earlier on Wednesday. (Reporting by Juby Babu in Mexico City and Anzar Mehraj in Bengaluru; Editing by Sahal Muhammed)
Salesforce's stock gets an Anthropic boost - and more highlights from earnings
Salesforce clears Wall Street's second-quarter expectations and deepens its ties with AI lab Anthropic Salesforce reaffirmed that it's on track for organic revenue reacceleration in the second half of the year. Investors were impressed by Salesforce's artificial-intelligence progress in the latest quarter as the software giant on Wednesday reported an earnings beat driven by growing demand for the company's agentic-AI tools. The company posted $11.35 billion of revenue for the second quarter of fiscal 2027, growing 11% from a year before and surpassing Wall Street's estimates of $11.33 billion. Salesforce shares (CRM) popped 13% higher in the extended session. It's the biggest post-earnings jump for the stock since August 2024, when shares jumped 26%, according to Dow Jones Market Data. "AI is delivering value across every layer of our platform," Salesforce CEO Marc Benioff said in a statement. "We're seeing incredible demand for our AI and data products, with ARR about to cross $4 billion." Annual recurring revenue from the company's Agentforce and Data 360 products grew over 210% relative to a year earlier, to just shy of $3.9 billion. Adjusted earnings per share of $5.90 cleared the $3.27 consensus estimate thanks to a large paper gain on the company's strategic investment in Anthropic. Salesforce has been an investor in the AI company since its Series C funding round in 2023. Stripping out the gain on investments, Salesforce's adjusted earnings would be $3.37 a share. Salesforce and Anthropic also deepened their relationship through a strategic partnership called "Claudeforce" on Wednesday. This integrates Anthropic's Claude directly into Salesforce's platform. While Salesforce shares are down 23% so far this year, they've begun to stage a comeback over the past month. The stock has risen 33% from its recent low at the end of July as investors have started taking a second look at the AI bear thesis that has gripped software names. "AI is amplifying the value of our entire platform," Robin Washington, chief financial and chief operating officer at Salesforce, told MarketWatch. The company has delivered over 7 billion agentic work units - a metric Salesforce uses to measure work completed by AI - across Agentforce and Slack, with 3.2 billion in the second quarter alone. Washington noted that higher usage of agentic work units is complementing core seat growth. Most importantly, Salesforce's pipeline of future business served as an encouraging signal, according to a Wednesday note from Evercore ISI analyst Kirk Materne. Current remaining performance obligations, or the value of signed contracts expected to convert into revenue within the next 12 months, amounted to $33.5 billion. That marked 14% year-over-year growth and exceeded Wall Street's estimates of $33.4 billion. After two quarters of 13% growth previously, Salesforce's cRPO acceleration is one of the "biggest highlights" of the report, Jefferies trading-desk analyst Jeffrey Favuzza wrote in a note. The company has been signaling for organic revenue to reaccelerate in the back half of this calendar year. Washington said that net new annual order value, which reached its strongest growth in four years, is keeping the company on track. For the fiscal third quarter, Salesforce guided for revenue between $11.42 billion and $11.5 billion, beating the $11.415 billion anticipated by analysts polled by FactSet. The third-quarter guidance calls for another quarter of 14% cRPO growth, according to Evercore's Materne. The company raised full-year guidance to between $46.1 billion and $46.4 billion. Analysts were expecting $46.112 billion. -Christine Ji This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 08-26-26 1850ET Copyright (c) 2026 Dow Jones & Company, Inc.
Could Anthropic pull off the biggest IPO ever? Five things you need to know
SAN FRANCISCO, Aug 26 -- Anthropic, the OpenAI rival that bet everything on computer coding, is expected to go public within weeks in a listing that could eclipse SpaceX's record Wall Street debut in June. Here are five things to know about the company: Built from OpenAI Anthropic was founded in 2021 by former OpenAI executives frustrated over how the potential of AI and concerns over safety were not understood or being taken seriously enough. The company -- whose name means, somewhat paradoxically, "relating to human beings" -- is led by CEO and co-founder Dario Amodei, a San Francisco native with a PhD in biophysics from Princeton University, not computer engineering like so many of his Big Tech peers. His sister Daniela is also a co-founder and the company's president. Anthropic has 5,000 employees, according to PitchBook. Upstart Until this year, Anthropic was in clear second place to OpenAI, which burst onto the scene with ChatGPT in November 2022, transforming the tech industry and triggering an AI arms race. But as OpenAI rolled out products from video creation to web browsers, Anthropic aimed far more narrowly, focusing on building the best platform for computer programmers. That strategy has paid off spectacularly -- coding is the rare AI skill that users are willing to pay handsomely for. Claude Code, its assistant for developers, has become one of the company's most popular products, helping push projected annual revenue to US$65 billion (RM262.3 billion). Only a small per centage of ChatGPT users, meanwhile, pay a subscription fee -- and OpenAI has put video AI and other side projects on the back burner. Trump vs. Anthropic The momentum comes despite severe political headwinds, with Anthropic at loggerheads with the Trump administration -- a state of affairs that could give investors pause. In March, the government broke off its contracts with Anthropic and designated the company a supply chain risk after it refused to grant the military unfettered access to its AI models. Anthropic called the Defence Department's move unconstitutional retaliation, and the two sides are now locked in a legal battle that could take years to resolve. The White House also bristles at Amodei's repeated warnings about the dangers of AI -- including the impact on jobs -- and his calls to regulate its deployment like airlines or banks. Amodei is also linked with effective altruism, a philosophy of targeted charitable giving scorned by conservatives in Silicon Valley and Washington. Big money needed Like OpenAI, Anthropic has massive needs for the computing power and infrastructure required to build so-called frontier models that stay ahead of competitors, amid fears that China could catch up. Both have raised money at unprecedented levels, with Anthropic valued at just under one trillion dollars when it raised US$65 billion in May. With venture capitalists -- and even sovereign wealth funds -- no longer able to play in that league, higher sums can only be found on the public markets. This is a risky step that will probably determine whether a business model exists for Anthropic's vision of the AI revolution. OpenAI, after initially promising an IPO this year as well, is now signalling it will wait until 2027. Stomaching the losses According to Bloomberg, Anthropic intends to surpass the record US$86.2 billion that Elon Musk's SpaceX raised in its June IPO. SpaceX, which absorbed Musk's AI startup xAI before going public, made its listing a partial AI bet, too. Its shares skyrocketed initially before coming back down to earth, and now sit at about their US$135 offering price. Anthropic's investors will likewise have to stomach huge losses for the foreseeable future. The company, according to US media reports, lost almost US$42 billion in 2025, and will likely keep bleeding cash for years. To lure investors, according to the Wall Street Journal, Anthropic will promise that revenue opportunities are above US$30 trillion. -- AFP
Five things to know about Anthropic ahead of Wall Street debut
Anthropic was founded in 2021 by former OpenAI executives and is led by CEO Dario Amodei Anthropic, the OpenAI rival that bet everything on computer coding, is expected to go public within weeks in a listing that could eclipse SpaceX's record Wall Street debut in June. Here are five things to know about the company: - Built from OpenAI - Anthropic was founded in 2021 by former OpenAI executives frustrated over how the potential of AI and concerns over safety were not understood or being taken seriously enough. The company -- whose name means, somewhat paradoxically, "relating to human beings" -- is led by CEO and co-founder Dario Amodei, a San Francisco native with a PhD in biophysics from Princeton University, not computer engineering like so many of his Big Tech peers. His sister Daniela is also a co-founder and the company's president. Anthropic has 5,000 employees, according to PitchBook. - Upstart - Until this year, Anthropic was in clear second place to OpenAI, which burst onto the scene with ChatGPT in November 2022, transforming the tech industry and triggering an AI arms race. But as OpenAI rolled out products from video creation to web browsers, Anthropic aimed far more narrowly, focusing on building the best platform for computer programmers. That strategy has paid off spectacularly -- coding is the rare AI skill that users are willing to pay handsomely for. Claude Code, its assistant for developers, has become one of the company's most popular products, helping push projected annual revenue to $65 billion. Only a small percentage of ChatGPT users, meanwhile, pay a subscription fee -- and OpenAI has put video AI and other side projects on the back burner. - Trump vs. Anthropic - The momentum comes despite severe political headwinds, with Anthropic at loggerheads with the Trump administration -- a state of affairs that could give investors pause. In March, the government broke off its contracts with Anthropic and designated the company a supply chain risk after it refused to grant the military unfettered access to its AI models. Anthropic called the Defense Department's move unconstitutional retaliation, and the two sides are now locked in a legal battle that could take years to resolve. The White House also bristles at Amodei's repeated warnings about the dangers of AI -- including the impact on jobs -- and his calls to regulate its deployment like airlines or banks. Amodei is also linked with effective altruism, a philosophy of targeted charitable giving scorned by conservatives in Silicon Valley and Washington. - Big money needed - Like OpenAI, Anthropic has massive needs for the computing power and infrastructure required to build so-called frontier models that stay ahead of competitors, amid fears that China could catch up. Both have raised money at unprecedented levels, with Anthropic valued at just under one trillion dollars when it raised $65 billion in May. With venture capitalists -- and even sovereign wealth funds -- no longer able to play in that league, higher sums can only be found on the public markets. This is a risky step that will probably determine whether a business model exists for Anthropic's vision of the AI revolution. OpenAI, after initially promising an IPO this year as well, is now signaling it will wait until 2027. - Stomaching the losses - According to Bloomberg, Anthropic intends to surpass the record $86.2 billion that Elon Musk's SpaceX raised in its June IPO. SpaceX, which absorbed Musk's AI startup xAI before going public, made its listing a partial AI bet, too. Its shares skyrocketed initially before coming back down to earth, and now sit at about their $135 offering price. Anthropic's investors will likewise have to stomach huge losses for the foreseeable future. The company, according to US media reports, lost almost $42 billion in 2025, and will likely keep bleeding cash for years. To lure investors, according to the Wall Street Journal, Anthropic will promise that revenue opportunities are above $30 trillion.
Five things to know about Anthropic ahead of Wall Street debut
Anthropic, the OpenAI rival that bet everything on computer coding, is expected to go public within weeks in a listing that could eclipse SpaceX's record Wall Street debut in June. Here are five things to know about the company: - Built from OpenAI - Anthropic was founded in 2021 by former OpenAI executives frustrated over how the potential of AI and concerns over safety were not understood or being taken seriously enough. The company -- whose name means, somewhat paradoxically, "relating to human beings" -- is led by CEO and co-founder Dario Amodei, a San Francisco native with a PhD in biophysics from Princeton University, not computer engineering like so many of his Big Tech peers. His sister Daniela is also a co-founder and the company's president. Anthropic has 5,000 employees, according to PitchBook. - Upstart - Until this year, Anthropic was in clear second place to OpenAI, which burst onto the scene with ChatGPT in November 2022, transforming the tech industry and triggering an AI arms race. But as OpenAI rolled out products from video creation to web browsers, Anthropic aimed far more narrowly, focusing on building the best platform for computer programmers. That strategy has paid off spectacularly -- coding is the rare AI skill that users are willing to pay handsomely for. Claude Code, its assistant for developers, has become one of the company's most popular products, helping push projected annual revenue to $65 billion. Only a small percentage of ChatGPT users, meanwhile, pay a subscription fee -- and OpenAI has put video AI and other side projects on the back burner. - Trump vs. Anthropic - The momentum comes despite severe political headwinds, with Anthropic at loggerheads with the Trump administration -- a state of affairs that could give investors pause. In March, the government broke off its contracts with Anthropic and designated the company a supply chain risk after it refused to grant the military unfettered access to its AI models. Anthropic called the Defense Department's move unconstitutional retaliation, and the two sides are now locked in a legal battle that could take years to resolve. The White House also bristles at Amodei's repeated warnings about the dangers of AI -- including the impact on jobs -- and his calls to regulate its deployment like airlines or banks. Amodei is also linked with effective altruism, a philosophy of targeted charitable giving scorned by conservatives in Silicon Valley and Washington. - Big money needed - Like OpenAI, Anthropic has massive needs for the computing power and infrastructure required to build so-called frontier models that stay ahead of competitors, amid fears that China could catch up.
Five things to know about Anthropic ahead of Wall Street debut
San Francisco (United States) (AFP) - Anthropic, the OpenAI rival that bet everything on computer coding, is expected to go public within weeks in a listing that could eclipse SpaceX's record Wall Street debut in June. Here are five things to know about the company: Built from OpenAI Anthropic was founded in 2021 by former OpenAI executives frustrated over how the potential of AI and concerns over safety were not understood or being taken seriously enough. The company -- whose name means, somewhat paradoxically, "relating to human beings" -- is led by CEO and co-founder Dario Amodei, a San Francisco native with a PhD in biophysics from Princeton University, not computer engineering like so many of his Big Tech peers. His sister Daniela is also a co-founder and the company's president. Anthropic has 5,000 employees, according to PitchBook. Upstart Until this year, Anthropic was in clear second place to OpenAI, which burst onto the scene with ChatGPT in November 2022, transforming the tech industry and triggering an AI arms race. But as OpenAI rolled out products from video creation to web browsers, Anthropic aimed far more narrowly, focusing on building the best platform for computer programmers. That strategy has paid off spectacularly -- coding is the rare AI skill that users are willing to pay handsomely for. Claude Code, its assistant for developers, has become one of the company's most popular products, helping push projected annual revenue to $65 billion. Only a small percentage of ChatGPT users, meanwhile, pay a subscription fee -- and OpenAI has put video AI and other side projects on the back burner. Trump vs. Anthropic The momentum comes despite severe political headwinds, with Anthropic at loggerheads with the Trump administration -- a state of affairs that could give investors pause. In March, the government broke off its contracts with Anthropic and designated the company a supply chain risk after it refused to grant the military unfettered access to its AI models. Anthropic called the Defense Department's move unconstitutional retaliation, and the two sides are now locked in a legal battle that could take years to resolve. The White House also bristles at Amodei's repeated warnings about the dangers of AI -- including the impact on jobs -- and his calls to regulate its deployment like airlines or banks. Amodei is also linked with effective altruism, a philosophy of targeted charitable giving scorned by conservatives in Silicon Valley and Washington. Big money needed Like OpenAI, Anthropic has massive needs for the computing power and infrastructure required to build so-called frontier models that stay ahead of competitors, amid fears that China could catch up. Both have raised money at unprecedented levels, with Anthropic valued at just under one trillion dollars when it raised $65 billion in May. With venture capitalists -- and even sovereign wealth funds -- no longer able to play in that league, higher sums can only be found on the public markets. This is a risky step that will probably determine whether a business model exists for Anthropic's vision of the AI revolution. OpenAI, after initially promising an IPO this year as well, is now signaling it will wait until 2027. Stomaching the losses According to Bloomberg, Anthropic intends to surpass the record $86.2 billion that Elon Musk's SpaceX raised in its June IPO. SpaceX, which absorbed Musk's AI startup xAI before going public, made its listing a partial AI bet, too. Its shares skyrocketed initially before coming back down to earth, and now sit at about their $135 offering price. Anthropic's investors will likewise have to stomach huge losses for the foreseeable future. The company, according to US media reports, lost almost $42 billion in 2025, and will likely keep bleeding cash for years. To lure investors, according to the Wall Street Journal, Anthropic will promise that revenue opportunities are above $30 trillion.
Five things to know about Anthropic ahead of Wall Street debut
Anthropic, the OpenAI rival that bet everything on computer coding, is expected to go public within weeks in a listing that could eclipse SpaceX's record Wall Street debut in June. Here are five things to know about the company: - Built from OpenAI - Anthropic was founded in 2021 by former OpenAI executives frustrated over how the potential of AI and concerns over safety were not understood or being taken seriously enough. The company -- whose name means, somewhat paradoxically, "relating to human beings" -- is led by CEO and co-founder Dario Amodei, a San Francisco native with a PhD in biophysics from Princeton University, not computer engineering like so many of his Big Tech peers. His sister Daniela is also a co-founder and the company's president. Anthropic has 5,000 employees, according to PitchBook. - Upstart - Until this year, Anthropic was in clear second place to OpenAI, which burst onto the scene with ChatGPT in November 2022, transforming the tech industry and triggering an AI arms race. But as OpenAI rolled out products from video creation to web browsers, Anthropic aimed far more narrowly, focusing on building the best platform for computer programmers. That strategy has paid off spectacularly -- coding is the rare AI skill that users are willing to pay handsomely for. Claude Code, its assistant for developers, has become one of the company's most popular products, helping push projected annual revenue to $65 billion. Only a small percentage of ChatGPT users, meanwhile, pay a subscription fee -- and OpenAI has put video AI and other side projects on the back burner. - Trump vs. Anthropic - The momentum comes despite severe political headwinds, with Anthropic at loggerheads with the Trump administration -- a state of affairs that could give investors pause. In March, the government broke off its contracts with Anthropic and designated the company a supply chain risk after it refused to grant the military unfettered access to its AI models. Anthropic called the Defense Department's move unconstitutional retaliation, and the two sides are now locked in a legal battle that could take years to resolve. The White House also bristles at Amodei's repeated warnings about the dangers of AI -- including the impact on jobs -- and his calls to regulate its deployment like airlines or banks. Amodei is also linked with effective altruism, a philosophy of targeted charitable giving scorned by conservatives in Silicon Valley and Washington. - Big money needed - Like OpenAI, Anthropic has massive needs for the computing power and infrastructure required to build so-called frontier models that stay ahead of competitors, amid fears that China could catch up.
