How much Anthropic and Cursor spend on Amazon Web Services

The buried lede:

Anthropic: "$2.66 billion on compute on an estimated $2.55 billion in revenue"

Cursor: "bills more than doubled from $6.2 million in May 2025 to $12.6 million in June 2025"

Clickthrough if you want the analysis and caveats

I could find an ARR for Cursor of $500M. Why do they they in this article that Cursor is loosing with this spending number ?

Ed's mentioned ARR in previous articles and it's not a "generally accepted accounting principle". They cherry pick the highest monthly revenue number and multiply that by 12, but that's not their actual annual revenue.

"Cherry pick the highest" is misleading. If your revenue is growing 10% a month for a year straight and is not seasonal, picking any other than the most recent month to annualize would make no sense.

If a company's revenue in January is $100 and it grows by 10% every month, the December revenue is $285. The year's revenue would be about $2,138, but ARR in December would be $3,423. That's 1.6x the actual revenue.

ARR could be a useful tool to help predict future revenue, but why not simply report on actual revenue and suggest it might increase in the next year? I have found the most articles to be unclear to the reader about what ARR actually represents.

How can you talk about ARR if you only look at 1 year?

It's useful for financial planning. Less useful for overall financial reporting given how volatile it is.

I should've been more clear. How can you talk about ARR if you only have 1 year?

How do you know it's recurring? What data do you have (historic) that makes you believe the revenue will happen again?

Is this based on signed contracts etc so you have some guarantees?