Rohan Paul

In the Reuters reporting of Anthropic's loss taken from its IPO docs The net loss of nearly $42 billion for 2025 should not be read as the cost of running the business. Roughly $34B of it is a non-cash accounting charge linked to convertible financing, meaning capital raised from investors in exchange for the right to receive Anthropic shares later. Because these instruments are recorded as liabilities, accounting rules require them to be revalued at fair value, or current market value, each reporting period. So as Anthropic's valuation surged massively, the shares these investors stand to receive became far more valuable, and that increase was booked as a loss. The underlying operating loss was about $8B, up from roughly $3B in 2024.