Anthropic S-1: profitable core, but competition may eat the profits

Anthropic's S-1 arrived after four years of arguments about the economics at frontier labs, according to Stratechery. The filing finally provides real numbers to examine, and Stratechery's analysis found the core business very profitable. However, the analysis also suggests that competition may eat all of the profits, even as investors are set up for endless dilution. Stratechery's Sharp Tech discussion covered what Anthropic is telling investors and noted that questions remain unanswered. The SEC also forced Anthropic to help explain Meta's Muse bet, a detail that emerged alongside the filing.