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Other Concentrations

Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

Prior  to  2026,  the  Company  obtained  substantially  all  of  its  compute  infrastructure  from  three  cloud  service 
providers  (“CSPs”).  During  the  six  months  ended June  30,  2026  (unaudited), the  Company obtained  a 
substantial  majority  of  its  compute  infrastructure  from  a  limited  number  of CSPs  and  other  suppliers  under 
long-term  hosting  and  lease  agreements.  This  created  dependencies  and  potential  vulnerabilities,  in  that  a 
disruption  affecting  these  counterparties  could  have  adversely  affected  the  Company’s  operations.  While  the 
Company is expanding its relationships with its existing CSPs, it is also expanding its compute capacity through 
commitments  with  additional  CSPs  and  through  compute  procured  from  other  sources,  including  leased 
infrastructure operated on its behalf.

The  Company  also  provides access  to  its  intelligence  service  through  CSP  marketplaces,  with  CSPs  acting  as 
collection agents for the Company in these transactions. During the years ended December 31, 2023, 2024, and 
2025,  revenue  generated  from  sales  through  CSP  marketplaces  to  customers  represented  approximately  11%, 
32%, and 47% of total revenue, respectively. During the six months ended June 30, 2025 and 2026 (unaudited), 
revenue generated from sales through CSP marketplaces to customers represented approximately 44% and 48% 
of total revenue, respectively. As of December 31, 2024 and 2025 and June 30, 2026 (unaudited), net accounts 
receivable  from  sales  through  CSP  marketplaces  to  customers  represented 42%,  60%,  and 58%  of  the 
Company’s net accounts receivable, respectively.

Certain of the CSPs also hold the Company’s non-voting redeemable convertible preferred stock and convertible 
notes. See Notes 9 and 10 for further information.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash held in checking and interest-bearing accounts as well as investments 
in money market funds and highly liquid investments with original maturities of three months or less from the 
date of purchase.

Restricted Cash

The  Company’s  restricted  cash  is  classified  as  noncurrent  based  on  the  contractual  or  estimated  term  of  the 
remaining  restriction  and  consists  of  amounts  pledged  as  collateral  for  the  Company’s  lease  and  other 
contractual obligations. These amounts are restricted from general corporate use and will be released or applied 
against the related obligations as the underlying conditions are satisfied.

Short-Term Investments

The  Company’s  short-term  investments  primarily  consist  of  debt  securities,  including:  U.S.  Treasury  and 
agency securities, corporate debt securities, and commercial paper. The Company determines the appropriate 
classification  of  its  short-term  investments  at  the  time  of  purchase  and  reevaluates  such  designation  at  each 
balance sheet date. The Company has classified and accounted for its short-term investments as available-for-
sale securities as the Company may sell these securities at any time for use in its current operations or for other 
purposes,  even  prior  to  maturity.  As  a  result,  short-term  investments,  including  securities  with  stated 
maturities beyond 12 months, are classified within current assets in the consolidated balance sheets.

Available-for-sale securities are recorded at fair value each reporting period and are periodically evaluated for 
impairment at the individual security level. For unrealized losses in securities that the Company intends to hold 
and  will not-more-likely-than-not be required to sell before recovery, the Company further evaluates whether 
declines in fair value below amortized cost are due to credit or non-credit related factors.

The Company considers credit-related impairments to be changes in value that are driven by a change in the 
creditor’s ability to meet its payment obligations and records an allowance and recognizes a corresponding loss 
in  other  income  (expense),  net  when  the  impairment  is  incurred.  Unrealized  non-credit  related  losses  and 
unrealized  gains  are  reported  as  a  separate  component  of  accumulated  other  comprehensive  income  (loss)  in 
the consolidated balance sheets until realized. Realized gains and losses are determined based on the specific 
identification  method  and  are  reported  in  other  income  (expense),  net  in  the  consolidated  statements  of 
operations.

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