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Provision for Income Taxes

(in millions, except for percentages)
Provision for income taxes

2024

2025

$ Change

% Change

$

1 $

20 $

19

NM

Year Ended December 31,

_____________
NM – Not meaningful.

Provision for income taxes for the year ended December 31, 2025 increased by $19 million compared to the year 
ended December 31, 2024. The increase was largely driven by an increase in foreign taxes associated with our 
international operations.

Comparison of the Years Ended December 31, 2023 and 2024

Revenue

(in millions, except for percentages)
Revenue

2023

2024

$ Change

% Change

$

41 $

386 $

345

841 %

Year Ended December 31,

Revenue  for  the  year  ended  December  31,  2024  increased  by $345  million,  or 841%,  compared  to  the  year 
ended  December  31,  2023.  Consumption-based  and  subscription-based  revenue  increased  by  approximately 
$249 million and $96 million, respectively, for the year ended December 31, 2024 compared to the year ended 
December 31, 2023. The increase was primarily driven by growth in new customers and reflected the broader 
commercial  availability  of  our  AI  platform  following  the  launch  of  the  Claude  3  family  of  Opus,  Sonnet,  and 
Haiku models in 2024, which expanded the range of supported use cases and drove adoption. The number of 
customers with $100,000 or more of revenue on a TTM basis grew from approximately 20 as of December 31, 
2023  to  approximately  200  as  of  December  31,  2024.  Total  revenue  from  these  customers  grew  from 
approximately  $37  million  to  $220  million  and  represented  approximately  90%  and  57%  of  total  revenue  for 
the years ended December 31, 2023 and 2024, respectively.

Operating Expenses

Compute and Infrastructure

(in millions, except for percentages)
Compute and infrastructure

Percentage of revenue

Year Ended December 31,

2023

2024

$ Change

% Change

$

433
1,056 %

$

2,522

$

2,089

482 %

653 %

Compute and infrastructure expenses for the year ended December 31, 2024 increased by $2.1 billion, or 482%, 
compared  to  the  year  ended  December  31,  2023.  The  increase  primarily  reflected  the  staged  delivery  of 
committed  compute  under  our  CSP  arrangements  entered  into  in  2023,  with  the  substantial  majority  of  that 
compute delivered in tranches during 2024. Compute and infrastructure expenses as a percentage of revenue 
decreased as revenue scaled against a compute base that is committed in advance and does not fluctuate with 
in-period demand.

Personnel

(in millions, except for percentages)
Personnel

Percentage of revenue

Year Ended December 31,

2023

2024

$ Change

% Change

$

$

95
232 %

$

454
118 %

359

378 %

153