What's actually inside Anthropic's leaked S-1 Body: Reuters got hold of the draft, and the way training costs are handled changes how you read the whole thing.

SLIDE 2 - The adjusted profit Headline: Anthropic reports a profit that excludes the cost of training models Body: They publish a bottom line and an adjusted figure, and the adjusted one leaves training out. That makes the business look considerably healthier.

SLIDE 3 - Why that's generous Headline: You never stop training a model Body: Every frontier lab is on a treadmill where each generation costs more than the last. Training isn't a one-off investment you make and then move past. It's a permanent cost of staying in the race.

SLIDE 4 - The real question Headline: Does revenue grow faster than training spend? Body: That's the entire economic argument for a frontier lab, and right now the answer is no. These businesses could be profitable tomorrow if they stopped training, which rather defeats the point of being one.

SLIDE 5 - The balance sheet Headline: Over half a trillion in compute commitments against roughly $20bn in cash Body: The draft is candid about the risks. It's also one of the clearest reasons to get listed, because a public company has far more ways to finance a gap that size.

SLIDE 6 - The governance detail Headline: Seven co-founders hold one special share carrying 50.1% of the vote Body: They've raised so much capital that their actual ownership is down to a few percentage points, nothing like Musk's position at SpaceX. The special share is how they keep control of the company anyway.

SLIDE 7 - Closer Headline: Targeting a listing before Thanksgiving 👇.

Full episode out now, find us wherever you get your podcasts. Upside Podcast - European venture, every week.

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