Anthropic's Q3 Results Are In — The Costs Are Exploding

Anthropic’s recent S-1 amendment reveals a massive $895 billion commitment to computing power over the next several years, complicating the company's IPO narrative as revenue growth slows and credit rating outlooks shift toward junk status. Tech markets are currently experiencing a significant correction, with major players like Alphabet, Amazon, and Microsoft facing investor skepticism regarding the return on investment for the trillions of dollars poured into AI infrastructure. While hyperscalers increasingly rely on debt to fund this capital-intensive build-out, rising interest rates and slowing core business growth heighten financial risks. Meanwhile, the broader American economy remains deeply divided; a booming AI-driven stock market benefits the wealthy, while the average worker faces declining real wages, persistent inflation, and unaffordable housing costs, creating a precarious environment ahead of the midterm elections.