What happened
Alphabet and Amazon reported stronger-than-expected third-quarter earnings, boosted by significant gains from the increased valuation of their stakes in Anthropic, the AI startup behind the Claude chatbot. Alphabet recorded $10.7 billion in net gains on equity securities, while Amazon posted a $9.5 billion pretax gain linked to its Anthropic investment. These gains appeared in their financial reports as nonoperating income and reflect paper profits from Anthropic's rising valuation.
Why it matters
- The rising value of Anthropic stakes is materially increasing Alphabetâs and Amazonâs reported profits.
- These gains highlight how AI investments are beginning to impact major tech companiesâ financial results.
- The valuation surge signals growing investor confidence in generative AI startups and their strategic importance.
Key facts
- 1. Alphabet reported $10.7 billion in net gains on equity securities in Q3 2025, largely from Anthropic.
- 2. Amazonâs third-quarter profit rose 38%, boosted by a $9.5 billion pretax gain from its Anthropic stake.
- 3. Anthropic completed a $13 billion funding round in September 2025, nearly tripling its valuation to $183 billion.
