News & Updates
The latest news and updates from companies in the WLTH portfolio.
Anthropic official claims there is a 10% chance that AI could kill all humans within a decade
Current and former employees of Anthropic, an American AI company founded by former OpenAI leaders, say they believe AI could potentially kill all humans within the next 10 years. "We really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade. I believe Anthropic is trying its best, but we do not yet have a plan to solve alignment for superintelligence and are not clearly on track to," Anthropic alignment-science lead Evan Hubinger wrote Tuesday night on X. His comments came after Anthropic AI researcher Jacob Coxon resigned from the company and took to X to detail his departure. "The people building AI earnestly believe that it could kill us all by the end of the decade," Coxon stated. "This is not a marketing stunt. If anything, many executives and senior researchers will couch their phrasing in the press to sound sensible - but I hear the same people express fear privately. No other human activity poses this level of danger." His comments come as AI becomes an increasingly routine part of daily life for millions of Americans, while concerns over its potential risks grow. Industry leaders have warned that increasingly powerful AI systems could eventually become difficult or impossible to control. Around 2 a.m. Wednesday, Anthropic scalable-oversight lead Samuel Marks also responded to Coxon's post, claiming that he was "[Writing this in a personal capacity, not on behalf of my employer (Anthropic)." "AI developers believe their technology could cause human extinction (or similarly bad outcomes). This could happen in the next few years. In general, the more senior the employee, the more concerned they are," Marks wrote. The Independent has contacted Anthropic for comment. OpenAI, a separate but leading AI company, declined to comment on Coxon's post when contacted by The Independent. However, a spokesperson pointed to several updates the company has published in recent weeks outlining its efforts to improve AI safety and alignment. This story is being updated
Interactive Brokers Earns Interest on $182 Billion of Its Clients' Idle Cash. Will Anthropic's IPO Drain It?
Interactive Brokers (NASDAQ:IBKR) ended June with $182.4 billion of uninvested client cash, up 27% year over year. Not only did the pile grow, but it was bigger still two months after the quarter closed, reaching $185.6 billion at the end of August. And until clients put that money to work, the automated global broker collects interest on it. They may soon get a big occasion to put some of it to work. Anthropic's initial public offering (IPO) prospectus could arrive as soon as this week. In late August, The Information reported that the artificial intelligence (AI) company planned to release it just after Labor Day, with a market debut following as soon as the end of this month. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Investors project the Claude maker's valuation could land at about $2 trillion, CNBC has reported. They also expect the offering itself could top the largest on record -- the $85.7 billion SpaceX (NASDAQ:SPCX) raised in its June debut. Anthropic's timing is a plan, not a scheduled event. There's no public prospectus, no price, and no share count yet. But I think the setup is worth examining, because the broker just lived through a version of it. What does a huge listing do to this business? Image source: The Motley Fool. A cash pile that pays Interactive Brokers earns money on client cash in a straightforward way. It segregates customer cash as regulators require and invests the majority of that segregated cash in short-term U.S. government securities and related instruments. Clients earn interest on qualifying U.S. dollar balances, and the company keeps a spread for itself: half a percentage point below the benchmark federal funds rate. At today's scale, net interest income is the company's biggest revenue line. It rose 23% year over year to $1.06 billion in the second quarter, helped by growing customer credit balances and a 67% jump in customer margin loans. That was more than half of the quarter's $1.9 billion of total net revenues. Notably, the growth came from bigger balances. The company's net interest margin narrowed to 1.93% from 2.07% a year earlier as interest rates declined, yet net interest income climbed anyway. In other words, the cash isn't idle from the broker's perspective. Every uninvested dollar earns the company a little interest, and clients added about $39 billion of those dollars over the past year.
Think SpaceX's $28.5 Trillion Idea Sounded Crazy? Wait Till You Hear What Anthropic Says.
Two months ago, Elon Musk made a bold claim. (I know. Shocking!) Explaining in its initial public offering (IPO) prospectus why Space Exploration Technologies (NASDAQ: SPCX) was justified in asking investors for a valuation more than $1.5 trillion, Musk & Co. asserted that, in the not-too-distant future, its products and services would serve a $28.5 trillion market for space, connectivity, and artificial intelligence (AI) services. And the biggest of these was AI. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " According to Musk, AI is a market opportunity of $26.5 trillion. SpaceX argues, Anthropic echoes Such a gargantuan number obviously stuck with me. And when another AI company -- Anthropic -- announced last week that, in its opinion, the total addressable market (TAM) for AI services could reach $30 trillion, well, that rang a big bell. Anthropic reported $11.6 billion in revenue in the second quarter (Q2) of 2026, more than doubling year over year. According to The Wall Street Journal, the company earned a "small operating profit" as well. But Anthropic sees even bigger things ahead for it as its TAM swells to $30 trillion and beyond. So, $26.5 trillion? $30 trillion? These are big numbers, and they're suspiciously close to each other. But that's not the only thing they have in common. Anthropic says it's targeting a TAM comprising "the full scope of work that could be completed with AI models," according to the Journal. And it can reach this TAM if it can "theoretically capture ... 100% market-share." Emphasis on "theoretically." But here's the problem: Estimating the size of a company's TAM requires "a bit of guesswork," says the Journal. Rarely does the company approaching an IPO tell you exactly what it includes in its TAM. Even more rarely does it tell you when it expects to achieve the TAM it cites. Unlike actual market-share reports, says the Journal, TAM estimates are "especially squishy." Which is another way of saying it's impossible to verify them before the IPO has happened -- by which time it may be too late. Examples from history Need examples? In 2019, ride-share company Uber (NYSE: UBER) told investors that its TAM was $6 trillion. But how much revenue did Uber actually pull in last year? $52 billion. Or about nine-tenths of one percent of what it cited as its TAM.
Anthropic Has Committed More Than $100 Billion to AWS, and Its Prospectus Could Reveal More Details About This Contract
Anthropic, the company behind the Claude artificial intelligence (AI) models, plans to publish its initial public offering (IPO) prospectus after Monday's Labor Day holiday, The Information reported late last month. A listing may follow as soon as late September or in October. Amazon (NASDAQ:AMZN) shareholders have a more specific reason than most to open the document when it lands. On April 20, Anthropic committed to spend "more than $100 billion over the next ten years" with Amazon Web Services (AWS), Amazon's cloud computing segment. That promise is equal to about a fifth of AWS's backlog of contracted work, which reached about $496 billion in June. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " In other words, Amazon has already told investors how much one of its biggest cloud customers intends to spend. What no Amazon filing can show is whether the customer's own finances support it. That's what the prospectus is for. Image source: Getty Images. The contract is already in Amazon's filings April's agreement covers up to 5 gigawatts of capacity on Amazon's own silicon -- Graviton processors and Trainium2 through Trainium4 AI chips, with an option on future generations. Amazon's filings show what a deal that size does to the backlog. AWS's backlog (commitments in customer contracts with original terms longer than one year that haven't yet been recognized as revenue) had grown to about $496 billion by June 30. That was up from about $364 billion in March, and from $195 billion in the middle of 2025 -- growth of 154% year over year, including a $132 billion jump in a single quarter. And the Anthropic deal wasn't alone. The filing also discloses a $100 billion, eight-year expansion of AWS's existing $38 billion commitment from OpenAI, announced a quarter earlier. Not only is AWS's contracted future far bigger than it was a year ago, but more of it also sits years away from becoming revenue. The weighted-average remaining life of the segment's long-term contracts stretched from 4.0 years to 6.4 years over those 12 months. One half of the deal is easy to check Of course, a backlog is signed work, not guaranteed revenue. Amazon says the amount and timing of what it recognizes "will be driven by customer usage and our performance in accordance with contractual obligations."
SpaceX Was 'Nowhere' in AI 6 Months Ago -- Now It's an Anthropic Rival After the $60 Billion Cursor Deal, Says Oppenheimer
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Oppenheimer analyst Timothy Horan says Space Exploration Technologies Corp. has gone from an artificial-intelligence also-ran to a credible Anthropic rival within months, crediting its $60 billion Cursor acquisition and expanding compute infrastructure. Cursor Deal Transforms SpaceX's AI Business "The company's doing an incredible job with AI," Horan told CNBC's Power Lunch hosts Kelly Evans and Brian Sullivan. "Six months ago, their AI business was almost, people thought, dying. The large language models of Grok were nowhere." He called Cursor "an absolute game changer." Cursor officially joined SpaceX on Aug. 14. "SpaceX really is a competitor to Anthropic."@Oppenheimer's Timothy Horan makes the bullish case for $SPCX -- saying the stock could double from here.https://t.co/DpdTOSPnle -- Power Lunch (@PowerLunch) September 2, 2026 Horan said Cursor's agentic coding activity gives SpaceX data on "what works, what doesn't work and all the logic behind that," helping improve Grok and other applications. He said SpaceX is targeting a $100 billion revenue run rate by year-end, with about 70% tied to AI, and could reach $120 billion to $130 billion next year. "I think Grok Bot is about to go viral," Horan said, while people working on Grok 5 believe it will be "transformational." Oppenheimer Raises Target On AI Momentum Oppenheimer reinforced that thesis Wednesday, maintaining its 'Outperform' rating and raising its SpaceX price target to $280 from $250, implying nearly 99% upside from around $141. The firm said SpaceX's vertically integrated AI platform combines proprietary data, capital, Nvidia Corp. GPUs and rapid infrastructure deployment. Oppenheimer raised long-term revenue estimates roughly 10%, said Nvidia's next-generation Rubin chips could pay for themselves within a year, and estimated SpaceX could capture 100% of revenue from software such as Cursor and Grok, versus roughly 50% when it acts as a wholesale AI infrastructure provider. See Also: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time SpaceX already leases substantial compute to Anthropic and Alphabet Inc.'s Google. The Anthropic deal includes $1.25 billion in monthly payments through May 2029, subject to a 90-day termination provision.
AMD Committed Up to $5 Billion to Anthropic, and Anthropic's IPO Prospectus Is Reportedly Days Away
When Advanced Micro Devices (NASDAQ:AMD) announced its Anthropic partnership in late July, two commitments stood out. Anthropic agreed to deploy up to 2 gigawatts of AMD Instinct MI450 series graphics processing units (GPUs), with deployment of the first gigawatt set to begin in the first half of 2027. And AMD committed to invest up to $5 billion in the artificial intelligence (AI) company behind the Claude models. The second commitment is about to get easier to measure. Anthropic plans to publish its initial public offering (IPO) prospectus after the Labor Day holiday on Monday, with a listing as soon as late September or early October, The Information reported late last month. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " What does AMD hold today, then? Not a stake, at least not yet. Image source: AMD. Conditions attached AMD's press release put it carefully: The company "has committed to make a strategic equity investment of up to $5 billion in Anthropic in the future." AMD's early August quarterly filing added structure. It describes investment commitments of up to $5 billion entered after the quarter ended, "subject to certain contingencies," with the money expected to go out through fiscal year 2028. Neither company has said what the contingencies are. And no valuation for the investment has been disclosed. That shape has become standard among Anthropic's backers. Alphabet agreed in April to invest up to $40 billion -- $10 billion immediately, the remaining $30 billion contingent on performance milestones. For scale, AMD held $1.7 billion of investments in private companies at the end of the second quarter. This one commitment could grow to nearly triple that. What would a listing change? Anthropic itself has confirmed very little. The only filing on record is a confidential draft registration statement submitted in June. However, the reported figures are staggering. CNBC has reported that Anthropic is valued at close to $1 trillion in the private markets, and that investors project it could float at about a $2 trillion valuation. The growth underneath, I think, explains the excitement. Anthropic's annualized revenue run rate (a full-year projection of its recent revenue pace) topped $30 billion in April and passed $65 billion by the end of July. The company has reportedly raised at least $130 billion, and its offering is expected to surpass the June IPO of SpaceX, which raised about $86 billion, the largest on record.
Anthropic Is Reportedly Gearing Up for an IPO This Year That Could Be Bigger Than SpaceX. 3 Things Investors Should Know.
Anthropic, the parent company of the large language model (LLM) family known as Claude, is reportedly preparing for an initial public offering that could happen as soon as later this month or in October, according to various media outlets. The company confidentially filed for an IPO back in June. It would mark the second monster artificial intelligence (AI)-related IPO since Space Exploration Technologies went public in June, raising nearly $86 billion at a $1.77 trillion valuation, in the largest IPO ever. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Given the amount of interest and hype surrounding this company and this topic, Anthropic could surpass SpaceX in total funds raised and valuation. Here are three things investors should know. 1. Anthropic may try to raise as much as $100 billion at a $2 trillion valuation As if SpaceX didn't go big enough, Anthropic will reportedly attempt to top it by raising up to $100 billion at a valuation as high as $2 trillion. This is, of course, no guarantee, as even SpaceX faced some pushback, despite its successful raise. SpaceX's stock has also been up and down since the IPO, as investors worry about the high valuation, the intense capital expenditures required by the business, and the future release of additional shares into the market. Whether Anthropic can reach a $2 trillion valuation will depend in part on the financials reported in its registration statement. The company reportedly doubled revenue in the second quarter to $11.6 billion and reported positive adjusted operating income, though I'm sure investors will be curious to see the adjustments. The Financial Times also reported that investors in Anthropic believe that annualized revenue could reach $120 billion by the end of this year. 2. Anthropic could be targeting a $30 trillion TAM Perhaps one of the most surprising figures in SpaceX's registration statement was its $28.5 trillion total addressable market (TAM), essentially the opportunity at play for the company. The bigger the TAM, the bigger the revenue potential. Citing anonymous sources, The Wall Street Journal recently reported that Anthropic is supposedly eying a $30 trillion TAM. Investors should be skeptical of TAMs, but the sheer size of SpaceX's TAM seemed to excite the market, even if it rested on some pretty spectacular assumptions.
Maybe we were wrong about Perplexity
Welcome to AI Decoded, Fast Company's weekly newsletter that breaks down the most important news in the world of AI. I'm Mark Sullivan, a senior writer at Fast Company, covering emerging tech, AI, and tech policy. Most Read from Fast Company Sign up to receive this newsletter every week via email here. And if you have comments on this issue and/or ideas for future ones, drop me a line at [email protected], and follow me on X @thesullivan. Perplexity's valuation is soaring. Its traffic tells a murkier story In a feature about the AI answer engine Perplexity in 2024, I suggested that the startup wasn't likely to last for the long haul against better-financed players like OpenAI and Anthropic, and that it was most likely an acquisition target. But here we are, well into 2026, and Perplexity is still alive and showing potential. Nvidia is reportedly in talks to invest in Perplexity in an equity round that would value the AI startup at more than $30 billion. That would mark a 50% increase from its estimated $20 billion valuation just a year ago. The Information reported that the company's annualized revenue is now more than $750 million, up from under $250 million at the start of 2026. At $750 million in annualized revenue, a $30 billion valuation is roughly 40 times sales. In February, Perplexity launched its Computer product, which deploys AI agents to do work on behalf of users. It also switched to a usage-based pricing plan in which users get a certain amount of credits for agentic work every month. The Financial Times reported that Perplexity's revenue increased 50% in a month after the launch of Computer. By March, Perplexity's annual recurring revenue had risen to $450 million, the report said, with some of that revenue coming from "tens of thousands" of enterprise customers. The picture of how many people are actually going to Perplexity for answers is somewhat muddled. Numbers from Similarweb suggest that traffic to the Perplexity.ai website peaked at 219 million visits per month in October 2025 and has been retreating ever since. App usage tells a different story. Similarweb numbers show that monthly active users of the Perplexity app on iOS and Android grew from 26.2 million in August 2025 to 37.9 million by February 2026, a roughly 45% increase in six months.
Anthropic Nears Finalizing $15 Billion Pre-IPO Credit Facility
(Bloomberg) -- Anthropic PBC is set to finalize expanding its revolving credit facility to $15 billion, according to people familiar with the matter, clearing a hurdle before the artificial intelligence firm's public filing for its highly anticipated IPO. Most Read from Bloomberg Morgan Stanley is leading the process, the people said. Goldman Sachs Group Inc. and JPMorgan Chase & Co. also have prominent roles on the facility, along with Citigroup Inc., they said. The four lenders are also leading the IPO, Bloomberg News has reported. The Claude chatbot maker is seeking to raise as much as SpaceX or more in the initial public offering, people familiar with the preparations have said. Companies typically finalize the revolver before they notify banks of their formal roles in a listing. Barclays Plc and Wells Fargo & Co. are also expected to have key roles on the loan, the people said. Bank of America Corp., Deutsche Bank AG, Royal Bank of Canada, and UBS Group AG are also high in the credit facility's lineup, they said. Generally, in syndicated loans, the higher the commitment of a bank, the higher the fees it gets paid by a borrower. When a large capital markets transaction is expected, a higher ranking in a loan is likely to correspond to a more active role in the upcoming deal. Bank of Montreal, BNP Paribas SA, Credit Agricole SA, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Toronto-Dominion Bank are also on the so-called revolver, the people said. The credit facility would exceed the company's roughly $10 billion target, Bloomberg News reported in August. Anthropic had asked the most active banks leading the credit line to lend about $1.25 billion each, with the next level of active banks being encouraged to offer around $1 billion, and with the commitments dropping to roughly $750 million and lower for less active roles, Bloomberg reported. Details of the loan could still change, the people said, asking not to be identified as the information isn't public. Representatives for Anthropic, JPMorgan, Barclays, Wells Fargo and UBS declined to comment. The other banks didn't immediately respond to requests for comment.
The Anthropic IPO May Be Right Around the Corner. Here's What Investors Need to Know.
This year has been a major one for initial public offerings, even producing the biggest IPO on record: the Space Exploration Technologies operation. Including the exercise of an overallotment option, SpaceX raised more than $85 billion and entered the market with a trillion-dollar valuation. Now, all eyes are focused on the next IPO, one that could be even larger than that of SpaceX. I'm talking about the upcoming Anthropic market debut. The artificial intelligence (AI) lab, maker of the famous AI assistant Claude, confidentially filed a draft registration statement with regulators in June. And news reports suggest an IPO may be right around the corner. Here's what investors need to know. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Image source: Getty Images. Why IPOs spark excitement So, first, a quick look at why the launch of companies involved in AI -- from SpaceX to AI chip designer Cerebras Systems -- has sparked excitement and drawn investors' attention. It's important to note that IPOs generally garner attention as they present new investing opportunities. On top of this, the AI market, heading toward a value of $3 trillion in just a few years, according to analysts, represents a massive growth opportunity. Publicly traded AI leaders such as Nvidia and Amazon have seen revenue skyrocket in recent years, so investors are eager to get in on the next new AI story. Now, let's consider Anthropic and what you as an investor need to know. The company is the maker of the Claude AI assistant, the popular Claude Code coding tool, and other AI-driven products, and these are in high demand. TechCrunch, citing an Anthropic spokesperson, reported that Claude paid subscriptions have more than doubled in 2026. In May, Anthropic raised $65 billion in Series H funding, pushing its valuation to $965 billion. At the time, the company said its revenue run rate had surpassed $47 billion. AI labs such as Anthropic and OpenAI have been key players in the AI story, calling for a ramp-up in AI infrastructure from cloud partners such as Amazon Web Services (AWS). This increase in compute results in higher revenue for them -- more compute allows Anthropic and OpenAI to supercharge the performance of their large language models and serve more customers.
Anthropic Nears Finalizing $15 Billion Pre-IPO Credit Facility
(Bloomberg) -- Anthropic PBC is set to finalize expanding its revolving credit facility to $15 billion, according to people familiar with the matter, clearing a hurdle before the artificial intelligence firm's public filing for its highly anticipated IPO. Most Read from Bloomberg Morgan Stanley is leading the process, the people said. Goldman Sachs Group Inc. and JPMorgan Chase & Co. also have prominent roles on the facility, along with Citigroup Inc., they said. The four lenders are also leading the IPO, Bloomberg News has reported. The Claude chatbot maker is seeking to raise as much as SpaceX or more in the initial public offering, people familiar with the preparations have said. Companies typically finalize the revolver before they notify banks of their formal roles in a listing. Barclays Plc and Wells Fargo & Co. are also expected to have key roles on the loan, the people said. Bank of America Corp., Deutsche Bank AG, Royal Bank of Canada, and UBS Group AG are also high in the credit facility's lineup, they said. Generally, in syndicated loans, the higher the commitment of a bank, the higher the fees it gets paid by a borrower. When a large capital markets transaction is expected, a higher ranking in a loan is likely to correspond to a more active role in the upcoming deal. Bank of Montreal, BNP Paribas SA, Credit Agricole SA, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Toronto-Dominion Bank are also on the so-called revolver, the people said. The credit facility would exceed the company's roughly $10 billion target, Bloomberg News reported in August. Anthropic had asked the most active banks leading the credit line to lend about $1.25 billion each, with the next level of active banks being encouraged to offer around $1 billion, and with the commitments dropping to roughly $750 million and lower for less active roles, Bloomberg reported. Details of the loan could still change, the people said, asking not to be identified as the information isn't public. Representatives for Anthropic, JPMorgan, Barclays, Wells Fargo and UBS declined to comment. The other banks didn't immediately respond to requests for comment.
Nscale doubles contracted revenue to $103 billion after Anthropic win - report
Investing.com -- UK-based neocloud provider Nscale is informing prospective investors that its total contracted revenue has expanded to approximately $103 billion, bolstered by a landmark $45 billion computing deal with Anthropic, according to investor materials reviewed by The Information. The Nvidia-backed infrastructure firm could launch an initial public offering as soon as this month, utilizing the massive backlog to demonstrate sustained enterprise demand for specialized artificial intelligence compute capacity. Nscale had previously disclosed $51 billion in contracted revenue prior to finalizing the Anthropic agreement and landing additional commitments from other AI-native clients. While the signed lease contracts carry an average duration of 5.7 years, equating to an annualized average of roughly $18 billion, a person familiar with the discussions cautioned that the metrics are illustrative and not intended as formal revenue guidance. Beyond its long-term pipeline, internal documents reveal rapid sequential acceleration in Nscale's underlying business, with second-quarter revenue estimated to have topped $100 million. That figure marks a substantial increase from approximately $37 million recorded in the first quarter, notably without yet reflecting any financial contributions from the newly secured Anthropic contract. The sheer scale of the contract additions underscores how specialized neocloud providers are leveraging intense AI compute demand to carve out market share ahead of major market debuts. Against that backdrop, prospective public investors will likely scrutinize how efficiently Nscale can convert its expanding illustrative backlog into realized, high-margin revenue over time.
Anthropic signs $35 billion Lambda cloud deal: WSJ
The Wall Street Journal reported Monday that Anthropic signed an agreement with Nvidia-backed Lambda valued at $35 billion for cloud computing. The arrangement is intended to bring Nvidia capacity online for Anthropic's Claude models. The project involves Hut 8's (NASDAQ: HUT) Beacon Point data center campus in Nueces County, Texas. Nvidia (NASDAQ: NVDA) would hold the facility lease, while Lambda would provide compute capacity to Anthropic, the Journal reported. The reports did not disclose the agreement's term, GPU count, payment schedule or computing capacity. They also did not specify how the contractual obligations are divided among Anthropic, Lambda, Nvidia and Hut 8. Stay ahead of AI infrastructure deals. Get Blockspace in your inbox. Lambda's financing Lambda closed a $926 million senior secured term loan B on August 27 to fund GPU infrastructure for an investment-grade offtaker's committed deployment. Lambda did not identify that customer in its announcement. The Baa2-rated loan priced at SOFR plus 300 bps and 99.5% of principal, with maturity on December 31, 2030. It fully amortizes against contracted cash flows and is secured by the funded GPU servers, related infrastructure and cash flows from those assets. "Closing this Facility puts capital straight to work, funding infrastructure to which our customer is already committed," Lambda CEO Michel Combes said. Morgan Stanley led the financing, with MUFG serving as joint bookrunner. Hut 8 commercialized Beacon Point's second phase in July through a 15-year, triple-net lease covering 352 MW of IT capacity. The lease carries $9.8 billion of base-term value and a 3% annual base-rent escalator. The second lease doubled the same unnamed tenant's contracted IT capacity at Beacon Point to 704 MW. Hut 8 said both phases carry $19.6 billion of aggregate base-term contract value, while renewal options could lift the campus total to $50.2 billion. Hut 8 financed the first 352 MW phase with $4.25 billion in senior secured notes that are non-recourse, carry a 6.129% coupon and mature in 2042. The campus has 1,000 MW of utility capacity under an AEP Texas interconnection agreement, as detailed in Blockspace's coverage of the project financing and ERCOT review. Stay ahead of AI infrastructure deals. Get Blockspace in your inbox. Hut 8 expects initial Beacon Point energization in the first quarter of 2027 and the first Phase 2 data hall in the second quarter of 2028. Site preparation is underway, and the operator said it has procured long-lead critical equipment.
Nscale doubles contracted revenue to $103 billion after Anthropic win - report
Investing.com -- UK-based neocloud provider Nscale is informing prospective investors that its total contracted revenue has expanded to approximately $103 billion, bolstered by a landmark $45 billion computing deal with Anthropic, according to investor materials reviewed by The Information. The Nvidia-backed infrastructure firm could launch an initial public offering as soon as this month, utilizing the massive backlog to demonstrate sustained enterprise demand for specialized artificial intelligence compute capacity. Nscale had previously disclosed $51 billion in contracted revenue prior to finalizing the Anthropic agreement and landing additional commitments from other AI-native clients. While the signed lease contracts carry an average duration of 5.7 years, equating to an annualized average of roughly $18 billion, a person familiar with the discussions cautioned that the metrics are illustrative and not intended as formal revenue guidance. Beyond its long-term pipeline, internal documents reveal rapid sequential acceleration in Nscale's underlying business, with second-quarter revenue estimated to have topped $100 million. That figure marks a substantial increase from approximately $37 million recorded in the first quarter, notably without yet reflecting any financial contributions from the newly secured Anthropic contract. The sheer scale of the contract additions underscores how specialized neocloud providers are leveraging intense AI compute demand to carve out market share ahead of major market debuts. Against that backdrop, prospective public investors will likely scrutinize how efficiently Nscale can convert its expanding illustrative backlog into realized, high-margin revenue over time.
Commerce chief signals end to Anthropic security rift ahead of potential IPO
Investing.com -- US Commerce Secretary Howard Lutnick signaled a resolution to months of regulatory friction with Anthropic PBC, stating in a Bloomberg Television interview that the artificial intelligence developer has aligned its security stance with the Trump administration. Speaking on the sidelines of a Group of 20 technology summit in North Carolina, Lutnick indicated that executive intervention helped bridge policy differences, clearing a path for closer coordination between federal officials and the AI firm. The diplomatic thaw follows a brief period of heightened scrutiny in June, when the Commerce Department temporarily restricted exports of Anthropic's flagship Fable 5 and Mythos 5 models over national security concerns. Those restrictions were rescinded two weeks later after the startup implemented revised safeguard protocols that satisfied federal oversight standards. The easing tension arrives at a critical juncture as Anthropic lays early groundwork for an initial public offering that market observers anticipate could rival or exceed SpaceX's record-setting public debut. In a visible sign of improved relations, Anthropic co-founder Tom Brown appeared alongside Lutnick at the G20 summit, publicly endorsing administration efforts to accelerate domestic data center construction and power infrastructure. It remains unclear, however, whether the political alignment with Commerce signals a broader reconciliation across the federal government, particularly at the Department of Defense. The Pentagon previously designated Anthropic a supply-chain risk and halted military deployment of its technologies following a rift over the startup's insistence on mandatory safety guardrails. Anthropic achieved a pivotal legal breakthrough last week when a federal judge in San Francisco ruled in its favor, ordering the government to lift the military procurement restrictions. As the company continues its pre-IPO positioning, institutional investors will be monitoring whether this combination of courtroom success and executive-level detente can establish a predictable regulatory environment for its growth trajectory.
Anthropic's $35 Billion Cloud Deal Comes With an Nvidia Twist
This article first appeared on GuruFocus. Nvidia Corp. (NVDA, Financials), the leading artificial intelligence chipmaker, is taking a deeper role in Anthropic's latest infrastructure expansion than simply supplying GPUs. Anthropic has signed a cloud-computing deal worth $35 billion with Nvidia-backed provider Lambda, according to The Wall Street Journal. Nvidia will supply chips for the project and is also reportedly holding the lease on the Texas data center supporting the agreement. The facility is being developed by Hut 8 in Nueces County, Texas. For investors, that structure is the bigger story. Nvidia is increasingly using its financial strength to help secure infrastructure for customers that ultimately consume its chips. That can accelerate AI capacity growth, but it also means Nvidia is taking on a larger role in financing the ecosystem around its own products. The arrangement shows how tightly linked AI chip demand, data-center construction and cloud financing have become. Anthropic is one of the largest developers of frontier AI models, making the $35 billion commitment another sign that spending on AI infrastructure remains enormous. The deal also gives Hut 8 exposure to one of the biggest announced AI cloud commitments in the market. Investors will be watching whether Nvidia continues using its balance sheet and leasing arrangements to support other large AI customers as the industry races to add computing capacity.
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Anthropic (ANTH.PVT) has signed a $35 billion cloud deal with Lambda (LAMD.PVT), according to Wall Street Journal reporting. Lambda is backed by Nvidia (NVDA). Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape.
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape. Today's deal is Anthropic signing a 35 billion cloud deal. It's backed by Nvidia, but it's with an Nvidia backed company called Lambda and Hut 8 is going to be the developer of this data center. So there's a lot of fingers in the pie for this one. Which I had to I had to draw it out. I had to draw it out for today. There you go. That's a good use of your phone. I couldn't I couldn't I was like, how is this? It literally is a circle. Okay, so what so what so I wish we had a graphic of that. I don't know if I have this correctly, but you have Anthropic, right? Give me 35 billion to Lambda, right? for the compute, right? Lambda giving money to Hut 8 for the for the data center. You have Nvidio over here giving money to Hut 8 for investment, right? which they do. Hut 8 paying Hut 8 paying for the chips, right? And holding the lease. And also to or leasing it. I don't know who knows how that how this part works. And then of course, Nvidia investing in Anthropic. The whole circle is complete, right? Yes. And also invest like Nvidia's at the center because it's investing in all of these things and handing out money to all of these It supplies the chips. It backs the provider. It holds the least. But I had to draw it out because it just was again, we were the circular deals can be kind of confusing if you don't actually look it at it schematically. Right. Um and then you're saying, why is there one company in the middle of everything? Yeah. Right. Yeah. Well, every few weeks, one of the big investment banks comes out with a new chart of all of Nvidia's deals it's made kind of mapping the whole picture. and the web just keeps getting more and more and more complex. We were meeting this morning, kind of going over what we were going to talk about today. You made what I thought was a very smart point that with these deals, we're getting to a point of dog bites man. Oh, yeah, yeah, yeah. But my worry with the dog bites man approach is like, sure, it's a Tuesday, we have another billion dollar deal. Does it risk complacency that we're going to start missing things if we're not really paying as much attention as we were six months ago? Um, I guess. I mean, missing what? What are we looking for? Because the risk is growing, the leverage is growing, the circularity to process point of it all is growing. It's getting more and more and more tangled and I worry that we risk losing sight to your point. Who knows how any of this actually who can actually draw this out on a map of how this all looks? So I look at it from like the auto point of view, because I always do that, right? So it's okay, so, if you're GM, right? You have a captive finance arm, okay? I'm going to finance my customer's cars. Great. That's not too bad. But I think the the little wrinkle is if it's almost as if the customer, okay, so I'm I'm I'm financing the customer, he buys my product, and then there's some other third party that I'm also investing in that holds the debt, you know, like it just it seems like it's more more convoluted than just vendor financing, right?
Anthropic's $35B cloud deal with Lambda adds new layer to circular financing concerns
Anthropic (ANTH.PVT) has signed a $35 billion cloud deal with Lambda (LAMD.PVT), according to Wall Street Journal reporting. Lambda is backed by Nvidia (NVDA). Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Senior Reporter Pras Subramanian to take a closer look at this network of AI deals -- Nvidia owns the lease on the data center site, which will be built by Hut 8 -- and weigh in on the circular nature of the AI landscape.
Hut 8 Rises on Anthropic's $35 Billion Lambda Deal
This article first appeared on GuruFocus. Hut 8 (NASDAQ:HUT) rose 2.21% premarket after Reuters reported that Anthropic signed a $35 billion cloud computing deal with Lambda, an Nvidia (NASDAQ:NVDA) backed cloud provider, for capacity at a Texas data center Hut 8 is developing. The site covers about 350 megawatts, according to a person familiar with the matter. Nvidia was down 1.24%. Nvidia would hold the lease on the data center. Hut 8, a bitcoin miner that has moved into AI infrastructure, said in July it had signed a 15-year lease with an unnamed investment-grade customer worth $19.6 billion over the base term, and later Nvidia was identified as the tenant at the company's 1-gigawatt Beacon Point campus. Anthropic said last week it would spend $45 billion renting compute from Nscale's West Virginia campus. The Lambda capacity is meant to serve demand for its Claude products, including the Claude Code tool, ahead of a planned listing.