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Anthropic files S-1: Amazon set for huge IPO gains

Original title: VCs will make billions on Anthropic’s IPO, but Amazon is set to make much (much) more

Plain language

What it is: Anthropic has filed its S-1 document ahead of an initial public offering. The filing reveals that tech giants Amazon and Google are set to make massive financial gains from the listing and from cloud computing deals.
How it works: Amazon structured its investment using convertible notes and nonvoting preferred stock. Additionally, Anthropic has committed to spend at least $110 billion on AWS cloud services over the next 10 years.
Where it is available: This information is detailed in Anthropic's S-1 filing ahead of its public stock market listing.
Example: Amazon invested a total of about $18 billion in Anthropic, and its convertible notes were valued at $97.9 billion as of June 30.

What it is: Anthropic's S-1 filing details its debt and ownership structure, showing that Amazon and Google hold major stakes and long-term cloud commitments. The documents reveal that Amazon holds Anthropic's entire debt load through convertible notes.
How it works: Amazon's convertible notes, with a principal of $6.2 billion, can convert into up to 1.84 billion shares, subject to a waivable 12% ownership cap. Meanwhile, Anthropic has committed to spend at least $110 billion on AWS and at least $114 billion on Google Cloud.
Where it is available: The details are sourced from Anthropic's S-1 registration statement and Amazon's quarterly financial reports.
Example: The S-1 filing warns of potential conflicts of interest, noting that cloud providers Amazon and Google also build rival AI models.

The headline and explanation on this page are based on TechCrunch's post. The full details are in the original.

VCs will make billions on Anthropic’s IPO, but Amazon is set to make much (much) more