Benedict's Newsletter: No. 663

··8 min read
TechnologyAI/MLBusiness
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AI Summary

Anthropic's 2025 financials show $4.6B revenue and an $8B operating loss, but annualized revenue hit $65B by July; OpenAI is nearing $70B annualized net revenue. Google released Gemini 4 to retake the lead, while OpenAI launched Dots agents and Meta expanded Muse. AMD acquired World Labs for $8.2B, and OpenAI disclosed security lapses affecting 100+ organizations.

Key Facts

✓Anthropic reported $4.6B 2025 revenue with an $8B operating loss, yet annualized revenue reached $65B by July.
✓Google released Gemini 4, retaking the top of AI leaderboards, while OpenAI hit ~$70B annualized net revenue.
✓AMD acquired World Labs for $8.2B, and OpenAI disclosed unauthorized access to 100+ organizations' systems.

Author Takes

Bearish

Anthropic financials

Focusing on Anthropic's pre-agentic-coding numbers is deeply unserious; the real questions are inference profitability and future model costs.

Neutral

AI competition

There's no sign of winner-takes-all effects in frontier labs, and pricing power is limited beyond compute shortages.

Skeptical

OpenAI Dots agents

Dots launch exposes the same blank-screen and jagged-model problems; agents may need to be horizontal/ambient or vertical/embedded to work.

Skeptical

Meta enterprise cloud

Building an enterprise infra business from zero is easier said than done, as Google Cloud's struggles show.

Bearish

OpenAI security

OpenAI's unauthorized access issues are a failure of management and engineering, not alignment, and raise legal liability questions.

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