Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Tuesday, September 29, 2026

Hey, Is This Sustainable?

 Anthropic's IPO has been leaked. Apparently, they ran a $42,000,000,000 loss last year and wants to take on $518,000,000,000 in cloud computing capacity. Those are billions of dollars.

But certainly they will make that back, right? Revenue has to be expanding?

It is! Revenue increased 12 fold last year!

To $4,600,000,000. 

That debt to revenue ratio is bonkers, but that IPO could cover all that debt, because nothing is real anymore or something. The important thing to note is that data center and AI build-out is the only thing sustaining economic growth right now and it's definitely, definitely not a bubble. Nope, not all. Having almost ten times more debt than revenue is completely normal.

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