Anthropic and Cursor Spend This Much on Amazon Web Services
14 hours ago
- #AI costs
- #Anthropic financials
- #Subprime AI Crisis
- Anthropic's AWS spending in 2024 was $1.35 billion, exceeding its estimated revenue of $400-$600 million.
- In 2025, Anthropic spent $2.66 billion on AWS through September, surpassing its estimated revenue of $2.55 billion.
- Cursor, Anthropic's largest customer, saw its AWS costs double from $6.2 million in May 2025 to $12.6 million in June 2025.
- Anthropic introduced Priority Service Tiers, increasing costs for customers like Cursor, leading to what the author calls the 'Subprime AI Crisis.'
- Anthropic's costs are rising linearly with revenue, consuming most of its income, with additional unaccounted expenses likely from Google Cloud.
- The author estimates Anthropic's total compute costs could be $3.33 billion to $5.3 billion through September 2025, far exceeding revenue.
- Anthropic's aggressive pricing strategies and rent-seeking measures are harming its customers and may not lead to profitability.
- The Subprime AI Crisis suggests AI startups building on top of models like Anthropic's face existential threats from price hikes and competition.
- Anthropic's financial sustainability is in question, with costs escalating as revenue grows, leading to potential price increases for customers.
- The author concludes that Anthropic's business model is unsustainable, with no clear path to profitability.