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Anthropic wants retail investors to peg the company’s value at more than $2 trillion, but its IPO prospectus exposes just how pricey it could be to turn the Claude maker into one of the world’s dominant artificial intelligence companies. Anthropic said in June that it confidentially filed a draft S-1 registration statement to the SEC.

The AI startup expects to funnel $518 billion on cloud, computing, and infrastructure obligations in the coming years, according to Reuters, which reviewed Anthropic’s IPO prospectus.

That figure arrives alongside explosive growth. Anthropic produced roughly $4.6 billion in revenue during 2025, about 12 times its last year’s total.

But building the infrastructure behind the company is costing more than it is bringing in. Anthropic ended up spending $7.33 billion on compute and infrastructure in the year-ago period, about three times its 2024 spending and larger than the entire 2025 revenue.

That makes Anthropic’s upcoming IPO a fascinating one. It’s a vote on whether investors will spend another $2 trillion on a big AI business.

It will also look at what Wall Street is expected to accept in capital allocation as frontier AI businesses rush to ensure they have the processing capacity to keep expanding.

Anthropic’s $42 billion loss needs some context

The big figure in Anthropic’s prospectus may end up being its loss.

The company posted a net loss of nearly $42 billion in 2025, which is astounding considering we are talking about a business bringing in $5 billion of annual revenue.

But that headline number does not tell the whole story.

Of that loss, almost $34 billion was tied to an accounting charge that reflects a rise in the projected value of financing instruments that might convert into Anthropic shares at some point. That wasn’t $34 billion in dollars spent operating Claude or buying computer power.

Anthropic’s operating loss offers a better view of the economics of the underlying firm.

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That loss widened to $8.06 billion in 2025 from $2.98 billion in 2024, even as revenue increased roughly twelvefold.

The combo illustrates both sides of the expansion at Anthropic. Revenue is growing at a staggering pace, but so are the costs of building, training, and deploying ever more sophisticated AI models.

Total operating expenses reached $12.65 billion last year. Compute and infrastructure accounted for $7.33 billion, which means these expenses represented more than half of Anthropic’s total operating spending.

That might make it one of the most crucial figures investors watch once the IPO is complete.

Anthropic’s biggest expense is also powering its growth

Compute is just not another expense line for Anthropic. It is the infrastructure the company needs to train more capable Claude models and serve an evolving and increasing customer base.

The size of that demand has surged sharply in 2026. Anthropic said in April that its annualized revenue run rate had risen to $30 billion, up from nearly $9 billion at the end of 2025. The firm also said that more than 1,000 commercial clients spent at least $1 million yearly, twice as many as two months before.

Meeting that demand requires considerably more computing power. Google and Broadcom reached deals with Anthropic to reserve about 5 gigawatts of next-generation TPU capacity starting in 2027. The company says it uses a mix of Google TPUs, Amazon (AMZN) Trainium chips and Nvidia GPUs rather than focusing on a single hardware platform.

Amazon is already offering infrastructure on a giant scale. Amazon says Project Rainier, the AWS cluster used by Anthropic, includes more than 500,000 Trainium2 chips and gives Anthropic considerably more computing power than it had for earlier generations of Claude.

Anthropic has proceeded to seek more capacity abroad. Anthropic said in May that it had signed a deal with SpaceX for more than 300 megawatts of processing power and more than 220,000 Nvidia GPUs at the Colossus 1 data center. Those assets will be added to large capacity agreements with Amazon, Alphabet (GOOGL), and Microsoft (MSFT) and other infrastructure partners.

That helps explain why the $518 billion infrastructure obligation is a sore spot in the prospectus; it’s worth circling in red. Anthropic is spending heavily because greater computing capacity is connected with the ability to improve Claude, serve more customers, and contend with other frontier AI developers.

Anthropic’s IPO exposes how expensive AI growth has becomeOLIVER CONTRERAS / Getty Images

Anthropic’s $2 trillion valuation raises a harder question

The prospective IPO will also signal a sharp valuation boom in a short period.

In May, Anthropic secured $65 billion in a fundraising round that valued the company at $965 billion. At the time, the company noted its growing compute footprint, including agreements with Amazon, Google and SpaceX.

A public-market valuation above $2 trillion will therefore more than double that May figure.

The argument for expansion is substantial. Anthropic’s revenue skyrocketed about 12 times in 2025, and its revenue run rate for 2026 indicates demand is still gaining momentum. But the IPO prospectus also illustrates what investors would be underwriting: an operational loss last year of $8.06 billion, expenditure on computing that outpaced annual revenue, significant customer concentration, and hundreds of billions of dollars in future infrastructure liabilities.

There is another cost to staying at the frontier. Anthropic’s own Responsible Scaling Policy says more capable models need stronger safeguards, security measures, and risk assessments as their capabilities advance, as the underlying infrastructure gets stronger.

That makes the IPO a particularly revealing test for retail investors.

Anthropic has shown that it can grow at a breakneck pace. Its prospectus now shows that maintaining that growth will require a pace that matches its revenue expansion; it’s very concerning for any potential investor in the stock.

Related: Microsoft just sent a strong message to Anthropic

Every autumn, millions of retirees eagerly await the Social Security Administration’s announcement of the annual Cost-of-Living Adjustment (COLA). On paper, the projected 2027 COLA of 3.5% or 3.6% boost sounds like a welcome buffer against sticky consumer prices. But when January rolls around, a familiar frustration sets in as the direct deposit landing in your bank account looks surprisingly meager compared to the headline percentage.

Where did the raise go? In most cases, it was quietly swallowed up by Medicare before you ever saw a single dollar.

As medical inflation continues to outpace broader economic benchmarks, rising Part B premiums, climbing drug deductibles, and income-based surcharges are chipping away at retirees’ purchasing power. But you don’t have to passively watch your safety net erode. Here is how the “Medicare deduction dynamic” works—and the strategic moves you can make to protect your monthly check.

The hidden drag: how Medicare intersects with Social Security

For the vast majority of retirees enrolled in both programs, Medicare Part B premiums (which cover outpatient care and doctor visits) are automatically withheld directly from monthly Social Security benefits.

While Social Security’s COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—a metric heavily weighted toward general goods like fuel, housing, and food—Medicare premiums are driven by overall national healthcare spending.

Because medical inflation runs at a significantly faster clip, Medicare price hikes routinely consume a disproportionate slice of the annual raise.

Gross Social Security Raise (COLA)   

Less: Medicare Part B premium hike (direct deduction) –

Less: Higher Out-of-Pocket Prescription Costs / Deductibles

 = Net Cash Increase in Your Monthly Checking Account

Even when the “Hold Harmless” provision applies—a rule designed to prevent a retiree’s net Social Security benefit from decreasing year-over-year due to a Medicare Part B hike—it only prevents your check from shrinking. It does not guarantee you get to keep your raise.

Medicare recipients must review changes in their Part D drug plan to determine if their prescription costs will rise for the next plan year.

Four actionable strategies to  defend your benefit check

Consider these strategies to help preserve your Social Security benefit amount.

1. Audit your coverage during open enrollment

Medicare Open Enrollment (October 15 – December 7) is your best opportunity to reclaim stolen margin.

Compare Part D Drug Plans: Standalone prescription plan deductibles and tiers shift annually. Staying on autopilot often leads to creeping premiums and unexpected co-pays.

Evaluate Medicare Advantage vs. Original Medicare: Advantage plans often feature low or $0 baseline premiums and added perks (vision, dental, wellness). However, ensure your primary physicians and local hospital networks remain in-network.

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2. Watch out for IRMAA surcharges

If your modified adjusted gross income (MAGI) crosses specific thresholds, Medicare hits you with an Income-Related Monthly Adjustment Amount (IRMAA). This extra surcharge stacks on top of standard Part B and Part D premiums.

Mind the 2-year lookback: IRMAA calculations look at your tax return from two years prior.

Appeal life-changing events: If your income dropped due to retirement, divorce, work reduction, or the death of a spouse, file Form SSA-44 to appeal the surcharge and lower your monthly withholding.

3. Optimize income sequencing

Taking large, one-time withdrawals from traditional 401(k)s or IRAs can inadvertently spike your taxable income and trigger higher Medicare withholdings down the line.

Leverage Roth accounts: Qualified Roth IRA distributions do not count toward your MAGI for Medicare pricing purposes, allowing you to draw spending money without triggering higher Part B premiums.

Manage taxable distributions: Balance taxable IRA distributions with non-taxable assets to keep your reported income safely below the IRMAA cliffs.

4. Explore savings and subsidy programs

If rising healthcare costs are straining your cash flow, look into targeted relief options:

Medicare Savings Programs (MSPs): State-administered programs that can cover Part B premiums (and sometimes deductibles/co-insurance) for eligible moderate-income retirees.

Extra help (Low-Income Subsidy): A federal program that significantly reduces prescription drug costs, copays, and deductibles under Part D.

The bottom line

A cost-of-living adjustment on paper means very little if medical deductions consume the net gain before it hits your bank account. By managing income brackets, shopping for competitive prescription coverage, and utilizing available tax strategies, retirees can keep rising healthcare costs from swallowing their hard-earned retirement income.

Related: How does Medicare IRMAA work?

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Why we love this deal

It doesn’t matter if you have an entire high-end timepiece collection or you’re just looking to buy your first luxury watch, you can’t really go wrong with a Bulova. The famed American watchmaker has been creating beautiful and functional timepieces for over a century, and one of its most exquisite examples is currently on sale at Amazon for half off. It’s a deal you definitely shouldn’t ignore.

The Bulova Classic Surveyor Open Heart Watch is on sale at Amazon for $318. That’s 42% off the original price of $550. This may be the perfect time to treat yourself to the special luxury item you’ve been coveting for a while, while you can get it with a major discount.

Bulova Classic Surveyor Open Heart Watch, $318 (was $550) at Amazon

Courtesy of Amazon

Shop at Amazon

Why do shoppers love it?

All luxury watches are not created equal. Thankfully, Bulova understands this and puts a lot of craftsmanship and quality into every piece it makes. This watch is no exception, as it’s beautiful, solidly built, and very accurate. The gorgeous black dial has a lovely sunburst effect when in direct sunlight. It also includes silver-toned applied hour markers and a matching stick-style handset. However, the crown jewel of this piece is the open heart design in the middle of the dial. It allows you to see the inner workings of the impressive Bulova automatic movement within. There’s also a see-through caseback on the underside of the watch that allows you to see the entire thing all at once. 

Both the case and bracelet of the watch are made from durable and beautiful 316L stainless steel. It’s rustproof and corrosion resistant, also emanating a shiny luster that you don’t often get from lesser metals. There is a luminescent coating on the handset that allows you to read the time even in low light conditions. The case has a moderate width of 42 millimeters, making it ideal for almost any wrist size. You get 30 meters of water resistance with this watch, meaning you’re totally fine to wash dishes or take a stroll in the rain and you won’t damage the watch.

Internally, this stunner is powered by an automatic movement that can hang with the best of them. It’s beautifully finished and keeps highly accurate time. It works by harnessing the energy of your arm’s movement. It then dispenses that energy throughout the day in order to keep the time. It never needs a battery and you don’t need to wind it manually every day. It’s an impressive mechanical feat, and one that you’ll enjoy having on your wrist whenever you look down at it. It’s a special piece, and one that you won’t tire of quickly.

Related: Amazon’s $156 luxury Seiko automatic watch uses the same tech as high-end Swiss timepieces

Amazon shoppers were excited about this watch. One described it as “one of the best watches I own,” adding,”The watch has so much class” and calling it “superb.”

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The Bulova Classic Surveyor Open Heart Watch is a beautiful way to show your appreciation for fine watchmaking. At just $318, it’s also a way to show that you’re a smart consumer. It proves that you don’t necessarily have to pay luxury prices to get high end goods. However, if you want this watch at the sale price, we recommend putting it in your cart sooner rather than later.

Former NBC “Today” show financial editor Jean Chatzky has published a new book, with a warning about 401(k)s, IRAs and the danger of viewing retirement savings according to longevity statistics in the wrong way.

Here is the important point: Once an employee sets their official last day of work on the calendar, all contributions to the retirement plan — including matching funds and payroll deductions — will officially cease on that date.

“At this point, you have a choice,” Chatzky wrote in her new book, “The Forever Paycheck.”

“You can leave the money in the 401(k), roll it over into an IRA, or cash out, the latter of which you don’t want to do,” she continued. “As long as you’re 59½, you can start taking penalty-free distributions. But how much? How often? And how should you invest the money in between?”

The creators of the modern post-pension retirement system spent years urging individuals to save and invest, yet provided no proven blueprint or guidance on how to actually withdraw and utilize those accumulated funds, according to Chatzky.

“This bit of blind-sightedness is the equivalent of a toy manufacturer putting 999 pieces into a 1,000-piece puzzle box,” Chatzky wrote. “It’s a cookbook author not telling you at what temperature to roast that turkey you’ve been brining for 48 hours. It’s Ikea leaving the dreaded Allen wrench out of the box but still expecting you to build the damn bookcase.”

Chatzky warns Americans on 401(k), IRA savings, longevity danger

Transitioning from decades of disciplined saving to actually spending one’s 401(k) and IRA savings can trigger a deep sense of vulnerability, as moving away from the mindset of future-focused sacrifice often creates a genuine fear of mismanaging or exhausting those hard-earned funds.

Average American life expectancy has increased dramatically over the last three quarters of a century, climbing from roughly 68 years in 1950 to 71 in 1970, reaching 75 by 1990, and topping out near 79 prior to a slight pandemic-related dip that left it around 77 and a half years today, according to Chatzky.

“But looking at longevity from birth (in other words, how long you’re likely to live based on the year you were born) is a very dangerous thing to do, at least financially,” Chatzky wrote. “Those average-from-birth numbers can convince you that as long as you’ve saved enough money to make it to, say, 80, you’re fine.”

“In fact, you’re not. The average person looking at their assets and trying to make sure they have enough to continue to live comfortably for the rest of their life — as long as that turns out to be — needs to look at longevity not from birth but from retirement.

Fidelity explains how to decide when to retire

In the United States, employees are not subject to a compulsory retirement age, allowing individuals to remain in the workforce for as long as they choose or are physically and mentally capable. This allows them to keep contributing to 401(k)s and IRAs.

“That may actually be a good thing because, in some circumstances, work can actually be … great,” wrote Fidelity Investments. “Beyond the paycheck and benefits, it can provide structure and routine, camaraderie, and a sense of purpose.”

And working longer may actually help people live longer, according to research from the Center for Retirement Research (CRR) at Boston College.

“Men who worked longer due to the policy change saw their mortality rate in their 60s fall from about 8 percent to 6 percent,” CRR wrote. “This result implies about a two-month increase in their life expectancy if the improvement is limited to ages 62-65, but if the impact is longer lasting, it could raise life expectancy more substantially.”

The timing of one’s exit from the workforce significantly affects the amount of personal savings required to sustain lifestyle needs, with typical American retirement ages hovering around 65 for men and 62 to 63 for women.

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Although Social Security claims can begin as early as age 62, individuals who delay taking benefits can increase their monthly payout by 8% for each year they wait up until age 70, according to the Social Security Administration (SSA).

Fidelity explains the guidelines it suggests people use to figure out whether they on track to retire at age they choose.

“To retire at 67, we suggest aiming to save 10 times your final salary. To retire at 62, you’ll want to consider saving more — 14 times your final salary,” Fidelity wrote. “Aiming for these guideposts can help ensure that your savings can provide enough income to cover your expenses in retirement — along with Social Security.”

Jean Chatzky explains factors that make withdrawing from 401(k) plans and IRAs difficult for retirees.Shutterstock

Chatzky discusses how 401(k), IRA withdrawals are not just math

What makes the transition into retirement so deeply challenging is that it goes far beyond simple numbers: it is fundamentally a psychological and emotional hurdle.

After spending forty years conditioned to accumulate wealth and exercise restraint in 401(k) plans and IRAs, suddenly shifting into a spending mindset feels intensely unnatural.

“You may have the money to do it. The numbers may say that you should feel free as a bird to take that trip, redo that kitchen, buy that car, contribute to that college fund. But. You. Can’t,” Chatzky emphasized in her book.

The reasons why this is such a struggle are many. Over several decades of working, we develop a habit of saving that’s tough to break,” Chatzky wrote. “We fear an uncertain medical event that we won’t be able to afford. We want to leave a legacy for the children we’ve raised and charities we’ve long supported. We worry about not being able to live our final days in comfort.”

“Or perhaps a parent (or someone else you respect) told you to ‘never spend your principal,’ meaning that you should be able to live off the interest that your investments earn,” she added.

What people need is what Chatzky calls a Forever Paycheck Plan.

“What you need is a plan,” Chatzky wrote. “Not a budget. Not a debt paydown scheme. Not instructions for getting into crypto at precisely the right moment. Not any other sort of piecemeal approach.”

Chatzky describes a Forever Paycheck Plan as “a set of instructions that acknowledges where you are today, assesses the possibilities for where you want to be in the future, and has a solid vision for managing that future perpetually (i.e., in a way that keeps it going for as long as you keep going yourself). All without making yourself nuts.”

“Even if you’re as young as 30, or even if you’re more than twice that age — and especially if you’re somewhere in between — the time to start building that plan is right now,” Chatzky wrote.

“Of course, everyone wishes they started yesterday.”

Related: Dave Ramsey emphasizes key warning on 401(k)s, IRAs