Anthropic tells investors Q3 revenue rose 45% to $16.8bn and it was profitable

Centre · 1Anthropic told prospective investors that its third-quarter revenue rose to $16.8 billion and that it turned a profit in the quarter, the Financial Times reported on Wednesday 14 October. 1 Centre · 2Two attendees of the investor day at Anthropic's San Francisco headquarters told Reuters that revenue was up 45% from $11.6 billion in the second quarter and $4.7 billion in the first. The BBC also reported the 45% rise to $16.8bn, in the three months to the end of September. 2 3 Centre · 2According to the people at the event, Anthropic said it was profitable on an adjusted basis in the third quarter. The BBC said the company reportedly made a profit for the second quarter in a row. 2 3

Centre · 1Another attendee said the company expects an annual revenue run rate of $110 billion by the end of the year. Attendees met CEO Dario Amodei and CFO Krishna Rao and left optimistic about the growth and the path to profitability. 2 Centre · 1One attendee said Amodei reiterated the focus on AI safety but avoided mentioning threats of human extinction, although the prospectus Reuters saw last month warned of "catastrophic or existential risks to humanity". Executives instead described using AI in the business, including to design a custom chip. 2 Centre · 1Reuters said the figures could ease market concerns about the cost of developing AI. Anthropic is targeting a valuation above $2 trillion and has committed at least $518 billion over a decade to cloud services, computing and infrastructure. Last year it lost more than $8 billion on an operating basis, excluding certain writedowns, on revenue of nearly $4.6 billion, Reuters reported. 2

Centre · 2Expectations for the listing differ between reports. The BBC said a listing is expected before the end of the year, while Reuters has reported that the debut is likely to be pushed until after the November US midterm elections. Reuters said it would precede a listing by OpenAI, whereas the BBC noted that OpenAI chief executive Sam Altman said in September his company will not go public this year. 3 2 Centre · 1The BBC set the news against a sell-off in tech stocks over AI spending. US chip makers fell on Wednesday, and on Thursday Softbank fell more than 9%, Samsung 9.4%, SK Hynix 10.8%, South Korea's Kospi 7.6% and Japan's Nikkei 225 4.8%. The BBC linked the falls to remarks by Broadcom chief executive Hock Tan about investors' expectations of AI spending. 3 Centre · 2An Anthropic spokesperson declined to comment to the BBC, and Reuters said the company did not immediately respond to a request for comment. 3 2