Fable 5 is the most expensive model from Anthropic, and it uses a lot of subagents. (Picture: Anthropic)Just as people are digging into their allocation of Claude Fable 5 usage on the paid tiers, they are running up to another wall: The model is very expensive and will chew through your alotted tokens in no time at all.
One ML engineer on reddit said it tore through a 5 page research paper while comparing it to a whitepaper with 174 subagents to review the results from 7 original agents and «ate through my max 20x 5 hour limit in ~15 minutes.»
Meta could soon be renting out excess compute, as it continues to build out capacity. (Picture: Adobe)Already sitting on one of the world’s largest compute clusters with plans to add some $145 billion worth more just this year — Meta is making contingency plans.
Bloomberg (paywalled) is reporting that they are now planning to form a cloud computing company to compete with AWS, Azure and Google Cloud, aiming to sell «excess capacity» to paying customers.
The idea is a hedge against overcapacity, Axios reports, quoting Zuckerberg as saying in May: «that is an option that we have, and that is partially what gives us confidence in investing in building this out.»
The new unit would offer raw compute to companies looking to train models, or could offer access to models from other AI labs and rent out the infrastructure to power them. This would be similar to services from Amazon and Azure.
SpaceX, now incorporating X.ai, faced a similar problem when their compute power got bigger than their needs, and struck deals with Anthropic and Google to sell excess compute access, Reuters notes.
It is estimated that Meta currently sits on 20 gigawatts of capacity, and it plans to add another 14 GW over the next years, Axios says.
OpenAI made $2 billion a month by the end of 2025. (Picture: Adobe)The spending came on a revenue of $13 billion, with a one-time accounting charge of $30 billion, The Financial Times reports, citing people familiar with the audited figures.
This charge was related to a change in governance from a non-profit to a Public Benefit Corporation. Previously, the FT explains, investors were paid interest on their capital, and this was accounted for as liabilities. As a PBC, they now pay in equity, and the cost won’t be reoccurring.
The numbers also show that the company spent $19 billion on developing models and research, and around $6 billion on sales and marketing.
At the end of 2025, OpenAI was earning $2 billion in revenue per month, as opposed to $1 billion per quarter in 2024, which the FT says makes it one of the fastest growing companies in history.
Without the one-time accounting charge, OpenAI’s losses for 2025 were «only» $8 billion.
OpenAI is estimated to be worth well over a trillion dollars on the open market. (Picture: Shutterstock)OpenAI has put up a short notice on its website informing of the filing, saying that they haven’t decided on the timing yet:
— It may be a while because there are things we want to do that are likely easier as a private company, the message says, and adds: — But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best.
This is just the first step of eventually filing publicly and paving the way for a proper market entry, which should give journalists and financial analysts a better look at their books, including risks and opportunities and real revenue numbers.
OpenAI’s most recent fundraise in April valued the company at $852 billion and saw companies such as Amazon, Nvidia and SoftBank pour in tens of billions each for a round worth $110 billion.
They said at the time that they had surpassed 900 million weekly users and had 50 million paying subscribers, and 6x the monthly web visits than the next AI app.
Anthropic filed confidentially just last week, and along with SpaceX, it sets up a season of some of the largest market entries ever. All three companies are expected to reach valuations of a trillion dollars or more.
Anthropic’s IPO will hit peak AI market excitement and likely be worth over a trillion dollars. (Picture: Shutterstock)The company says the filing does not mean it will announce going public any time soon, but some speculate it might come as early as this fall, according to The New York Times.
The documents submitted to the Securities and Exchange Commission detail operations, and typically include potential risks, C-suite compensation «and other financials,» The Verge writes.
The filing of the S-1 form, the public declaration on finances and risks, will come at a later date, Anthropic says, and will be determined by «market conditions and other factors.» They only need to file a prospectus fifteen days before publicly soliciting stocks, CNBC reports.
An actual IPO from Anthropic is expected to be massive, as the recent fundraise at a $965 billion valuation would indicate. The company has an annualized run rate of some $47 billion, but investors are more keen to see the gross margin, which has been kept secret in its entirety since inception, according to Reuters.
OpenAI is also expected to file an IPO in short order, and with SpaceX already filing, it sets up a blockbuster year for market debuts.
Major brokerages already use AI, and now it is coming to consumers. (Picture: Robinhood)The stock trading platform is announcing agent-based accounts that will trade stocks based on different profiles, and also launched a credit card for them to use online.
— Our mission has always been to democratize finance for all, and now, that mission extends to AI agents, CEO Vlad Tenev said, according to CNBC.
The company says the service is designed with a safety-first mindset, meaning you retain control over trades and purchases by requiring approval first, and get notifications for every transaction.
It works by setting up a dedicated trading account for your agent, separate from your main portfolio. Then you can transfer funds and let the agent trade based on strategies you set out.
It is not the first such agentic framework, there are already specialized stock trading agents from public.com and there’s TradingAgents, but it is for a major player.
OpenAI is still leading the pack, but is facing increasing headwinds. (Picture: Adobe)The Information (paywalled) says sources are telling them that OpenAI landed a billion dollars ahead of Anthropic last quarter, but «only» has an annualized run rate of $30 billion versus Anthropic’s $45B.
The AI lab estimates that its adjusted income margin was at -122%, meaning it lost $1.22 for every dollar earned, driven by high investment costs for infrastructure and compute.
The growth was driven mainly by Codex and enterprise customers, the report said — although ChatGPT growth stalled at about 905 million weekly users in the latest quarter.
OpenAI is said to reveal its IPO plans «within weeks,» Reuters reports, and possibly as soon as «this Friday,» according to CNBC.
Its most recent funding round valued the company at $852 billion, just short of Anthropic’s $900 billion — but their funding round came a little later.
Anthropic is reaching for profits, but compute costs might be a damper. (Picture: Shutterstock)Last quarter ending in March saw an 80-fold growth for Anthropic and a revenue of $4.8 billion, a record for the AI lab.
Next quarter will be even better, sources are telling Reuters and WSJ — projecting a revenue growth of 130% and landing at $10.9 billion, more than double their previous number.
That should land them an operating profit of $559 million, Reuters reports.
This unprecedented growth underscores how Claude has boomed in the new year for coders and enterprises alike, that OpenAI is racing to catch up to.
The Wall Street Journal does however warn that this growth in subscribers also translates to higher computing costs, that might put a significant dent in their yearly profits.
Anthropic is about to become the most highly valued AI lab of them all. (Picture: Shutterstock)The huge funding haul would surpass OpenAI’s record valuation of some $852B in April, and comes hot on the heels of Anthropic rebuffing bids at a mere $800B valuation recently.
Their last funding round was at a $380 billion valuation in February, which is less than half of todays numbers just three months ago.
The news was first reported by The Financial Times, who says the round is co-led by Dragoneer Investment Group, Greenoaks Capital, Sequoia Capital, and Altimeter Capital, all offering $2B each, while Anthropic is in talks with «additional investors.»
They are also expected to pass $45 billion in annualized revenue «shortly,» which is five times what they had at the end of last year, Investing.com writes.
ChatGPT has been a lucrative endeavor for those at the top. (Picture: Shutterstock)«The compensation was certainly secondary to the mission,» Brockman said in court yesterday, according to NBC News.
He was being questioned at the Musk trial by lawyer Steven Molo, asking «You just happen to be $30 billion richer?»
Elon Musk is suing OpenAI in a California court, arguing the startup he co-founded has abandoned its altruistic non-profit mission and going on an «enrichment spree» on a for-profit basis. He seeks to paint the executives as greedy.
OpenAI counters that Musk is driven by resentment of their success and an obsession to control the company. The trial is ongoing.
Google and Anthropic are rivals in the chatbot arena, but partners in compute. (Picture: Anthropic)Alphabet, Google’s parent company, has reached an agreement to initially invest $10 billion in Anthropic, increasing to $40 billion on reaching «performance targets,» Reuters reports.
The deal comes hot on the heels of Amazon’s investment of $25 billion this week, also contingent on «commercial milestones.»
Google’s investment comes as Anthropic is seeking to expand its compute capacity after severalreports of throttling and downtime for its Claude service, amid rising popularity.
Earlier this month, Google and Broadcom secured a «partnership» with significant compute for Anthropic, as the company announced it had hit a $30 billion annualized run-rate revenue.
Catching up to OpenAI? Sources claim Anthropic doubling in value in latest bids. (Picture: Shutterstock)With explosive growth and a claimed yearly run-rate of $30 billion, Anthropic is turning out to be a hot stock in Silicon Valley and beyond.
Business Insider is now reporting that the AI lab has received «multiple offers» at valuations of $800 billion, citing anonymous sources.
That would put it closer to OpenAI’s already stellar valuation at $852 billion — signifying peak interest in the AI sector at large and Anthropic specifically.
Anthropic just finished a $30 billion funding round in February at a valuation of $380 billion, meaning the latest offers would more than double the company’s value.
Anthropic then said that their revenue had grown 10x each year since inception, and said in April that customers spending $1 million or more had doubled since that.
It is common for «buzzy startups» to be on the receiving end of «preemptive offers,» Business Insider notes.
AI bets are already starting to pay off for Amazon, Jassy says. (Picture: Shutterstock)Andy Jassy’s annual shareholder letter this year was all about defending their massive, 60% increase in capital spending on AI infrastructure.
— We’re not investing approximately $200 billion in capex in 2026 on a hunch, he writes according to CNBC. — We’re not going to be conservative in how we play this — we’re investing to be the meaningful leader, and our future business, operating income, and [cash flow] will be much larger because of it, he continues.
There are already deals incoming to support this claim, he writes, noting a $100 billion commitment from OpenAI for AI compute on their server farms.
AI server use at Amazon’s cloud unit has reached more than $15 billion in annualized revenue, Jassy writes, and now represents about 10% of the total for AWS, Reuters reports.
Going public will help fund massive infrastructure, the OpenAI CFO says. (Picture: Shutterstock)In an interview with CNBC, Chief Financial Officer Sarah Friar stays mum on specifics of going public, but says their recent funding round showed «really strong demand» from retail investors.
She said other companies, like Block and SpaceX have reserved IPO stock for retail investors and OpenAI will «for sure» do the same thing.
— Everybody wants to own part of a rocket company — I hope everyone wants to own part of ChatGPT. It helps when you’re a consumer brand, Friar told the channel.
She won’t comment on a concrete timeline for going public, but says it’s «good hygiene» for the company to «look and feel and act like a public company.»
An OpenAI IPO could come as soon as the second half of 2026, Reuters reports, and could value the company at up to $1 trillion.
OpenAI is offering policy suggestions for an AI world, and warns it is coming sooner than you think. (Picture: Shutterstock) We are entering the AI age with all engines running, OpenAI says, and we need to be prepared for a future where production is done by robots, capital gains amass rapidly and regular people might be forced out.
While saying there are ways to mitigate this, like offering a four-day workweek and massively expanding the social safety net akin to the New Deal policies after the Great Depression, OpenAI says time is running out.
Their proposals suggest drastically increasing capital gains taxes and offers an idea to tax automation in factories, as they push regular people out of jobs — and envisions creating a public wealth fund powered by AI, that can empower citizens directly and offer them a stake in the future.
OpenAIs policy paper also lays out how they see access to AI as «foundational for participation in the modern economy» and is similar to that of cars or electricity. Every citizen should have access, they say.
