A Message From Weiss Ratings
Dear Reader,
I need to speak with you directly.
I want you to see the most important warning of my career …
And one of the most important warnings any American family will receive before the next great financial crisis hits this country.
I'm Dr. Martin D. Weiss. I'm a Wall Street Journal, BusinessWeek, and New York Times best-selling author.
And for 55 years I have run Weiss Ratings … the only 100% conflict-free, independent financial rating agency in America.
We are paid by no one we rate. We answer to no one but our subscribers.
And in the 55 years since I issued my first public warning before a financial crisis, I have publicly predicted six major American crashes, before they happened.
What I'm seeing now is a $3 trillion problem.
And the biggest danger right now is NOT just another stock market crash.
The biggest danger is NOT only a major bank failure.
Rather, it's a chain reaction of crashes and failures that could cause a global freeze in the financial markets. And it starts here:
Go here now to see the most important warning of my career
Good luck and God bless!
Sincerely,
Martin D. Weiss, PhD
Weiss Ratings Founder
Just For You
Anthropic's S-1 Strengthens the Case for Broadcom's AI Growth
Author: Leo Miller. Article Published: 11/8/2026.
Key Points
- Anthropic's newly filed S-1 shows strong cash, growth, and profitability trends that support its ability to honor a $161.2 billion Broadcom lease commitment.
- As of Sept. 30, Anthropic held about $131.8 billion in cash and short-term investments while revenue surged over 1,200% year-over-year to $33.24 billion.
- Anthropic also carries massive commitments to Google, Amazon, Microsoft, and SpaceX, though a potential IPO delay or lower valuation could reduce available cash.
- Special Report: ELON + YOU + DECEMBER 8TH
Investors hit AI stocks hard on Nov. 5, sending shares across the industry into the red. Markets didn’t spare chip giant Broadcom (NASDAQ: AVGO); shares fell 10.4%, their largest single-day decline in five months.
Despite this dramatic sell-off, a key regulatory filing has favorable implications for Broadcom’s outlook: Anthropic’s much-anticipated S-1, which the company subsequently updated on Nov. 2. The filings provided the public’s first clear look at Anthropic’s financials. Broadcom expects Anthropic to become its largest XPU customer in 2027.
Importantly, Anthropic’s cash position, rapid growth and improving profitability are positive indicators of its ability to meet its massive commitment to Broadcom.
Anthropic’s $161 Billion Broadcom Commitment
Anthropic has entered into five-year master equipment leases with Broadcom, giving the company access to tensor processing unit (TPU)-based compute. As previously reported, Anthropic’s rent payments over the life of these leases total around $161.2 billion, excluding interest. This commitment is not only large but also firm, with Anthropic noting, “the Lease Arrangements are non-cancelable by either party during the applicable lease period except by the lessor in the case of a default.”
The risk of default remains important; Anthropic still needs the funding to make these payments when they come due. Fortunately, the company’s financial metrics support the idea that it will be able to meet its obligations, although they certainly do not guarantee it.
Anthropic’s Cash War Chest, Dramatic Growth, and Profitability Gains
As of Sept. 30, Anthropic had a massive cash balance. Its cash, cash equivalents and short-term investments totaled approximately $131.8 billion. That figure is likely to rise significantly following the firm’s IPO. Although the goalposts may be moving, the company is reportedly targeting a valuation of $1.5 trillion to $2 trillion and could raise $100 billion or more.
Anthropic’s sales are also soaring, and its profitability has improved significantly. In the nine months ended Sept. 30, Anthropic generated $33.24 billion in revenue, an increase of more than 1,200% year over year (YOY).
Furthermore, during the same nine-month period, the company reduced its operating loss by more than 75% versus 2025, narrowing it from $5.22 billion to $1.26 billion. Its operating loss as a percentage of revenue also fell sharply, from 205% to just 4%. Adjusted operating profit was positive in the first nine months of 2026, at $4.08 billion, or a 12% margin, compared with an adjusted operating loss margin of 123% in the same period of 2025. Anthropic also generated positive operating cash flow of $6.57 billion.
While Anthropic still has a long way to go before achieving impressive margins, the steep improvement in its profitability is difficult to deny. However, Anthropic expects its GAAP and adjusted operating margins to fluctuate as it takes delivery of additional compute. In line with this, the company’s adjusted operating margin fell from 19% in Q2 to 15% in Q3 as it added $5 billion worth of compute under short-term commitments.
Nonetheless, this generally strong trajectory is promising for Anthropic’s ability to pay Broadcom over the coming years, while its large cash position should help fund those payments as investors wait for further evidence of sustained profitability.
Anthropic’s Hundreds of Billions in Total Commitments
However, Broadcom is far from the only company to which Anthropic has major commitments. The company also reports commitments of at least $121.3 billion to Alphabet (NASDAQ: GOOGL) subsidiary Google, at least $110 billion to Amazon.com (NASDAQ: AMZN), and at least $44.9 billion to Microsoft (NASDAQ: MSFT). Like the Broadcom commitment, these agreements are largely non-cancelable.
Anthropic also has an agreement worth up to $120.5 billion with SpaceX (NASDAQ: SPCX). However, after initial non-cancelable periods ending in January 2027 and March 2027, “each agreement may be cancelled by either party upon 90 days’ advance written notice.” The company also reports tens of billions of dollars in commitments to private neo-clouds Nscale and Lambda. Importantly, all of these commitments extend into at least 2029, and some as far as 2036, spreading payments over many years.
Anthropic’s total commitments are clearly several times larger than its agreement with Broadcom. Still, its agreement with SpaceX provides significant cancellable capacity. If Anthropic needed to reduce its compute spending, it would be more likely to axe its cancellable agreements before defaulting on its Broadcom leases. And, again, Anthropic’s large cash balance should go a long way toward helping it fund its commitments in the near term.
Anthropic’s IPO Timing and Valuation Come Into Question
Overall, Anthropic’s S-1 contained many positive signs regarding its ability to pay Broadcom. However, Anthropic’s continued progress toward profitability will be a key piece of the puzzle and something for investors to watch closely.
More immediately, investors should watch the timeline for Anthropic’s IPO and the valuation the company ultimately targets. Amid the recent sell-off, reports have emerged that Anthropic could delay its IPO and that some investors favor a valuation closer to $1 trillion. A lower valuation target could significantly reduce Anthropic’s IPO proceeds—and, in turn, the cash available to pay suppliers.
Given current market volatility, a delay could be a smart move, as the company still has a mountain of cash it can use to operate in the meantime.
. |
No comments:
Post a Comment