Critique of Anthropic's EBITDA Profitability Claims in WSJ Reporting

Summary

This article is a critical analysis and rebuttal of a Wall Street Journal report claiming Anthropic is about to achieve its first profitable quarter. The author argues that the WSJ's framing is misleading, pointing out that Anthropic's reported "profitability" is based on EBITDA (earnings before interest, taxes, depreciation, and amortization) rather than true net income. The piece contends that Anthropic, like many AI companies, is burning through massive amounts of capital on compute infrastructure and model training, and that EBITDA profitability is a deceptive metric that ignores these enormous costs. The article suggests this narrative is part of a broader pattern of media spin around AI companies to maintain investor confidence and justify high valuations.