Anthropic hits $3 billion in annualized revenue on business demand for AI
Artificial intelligence developer Anthropic is making about $3 billion in annualized revenue, according to two sources familiar with the matter, in an early validation of generative AI use in the business world.
The milestone, which projects the company's current sales over the course of a year, is a significant jump from December 2024 when the metric was nearly $1 billion, the sources said. The figure crossed $2 billion around the end of March, and at May's end it hit $3 billion, one of the sources said.
While consumers have embraced rival OpenAI's ChatGPT, a number of enterprises have limited their rollouts to experimentation, despite board-level interest in AI. Anthropic's revenue surge, largely from selling AI models as a service to other companies, is a data point showing how business demand is growing, one of the sources said.
A key driver is code generation. The San Francisco-based startup, backed by Google parent Alphabet and Amazon.com, is famous for AI that excels at computer programming. Products in the so-called codegen space have experienced major growth and adoption in recent months, often drawing on Anthropic's models.
This demand is setting Anthropic apart among software-as-a-service vendors. Its single-quarter revenue increases would count Anthropic as the fastest-growing SaaS company that at least one venture capitalist has ever seen.
'We've looked at the IPOs of over 200 public software companies, and this growth rate has never happened,' said Meritech General Partner Alex Clayton, who is not an Anthropic investor and has no inside knowledge of its sales.
He cautioned that these comparisons are not fully precise, since Anthropic also has consumer revenue via subscriptions to its Claude chatbot. Still, by contrast, publicly traded SaaS company Snowflake took six quarters to go from $1 billion to $2 billion in such run-rate revenue, Clayton said.
Anthropic competitor OpenAI has projected it will end 2025 with more than $12 billion in total revenue, up from $3.7 billion last year, three people familiar with the matter said. This total revenue is different from an estimated annualized figure like Anthropic's. Reuters could not determine this metric for OpenAI.
The two rivals appear to be establishing their own swim lanes. While both offer enterprise and consumer products, OpenAI is shaping up to be a consumer-oriented company, and the majority of its revenue comes from subscriptions to its ChatGPT chatbot, OpenAI Chief Financial Officer Sarah Friar told Bloomberg late last year.
OpenAI has not reported enterprise-specific revenue but said in May that paying seats for its ChatGPT enterprise product have grown to 3 million, from 2 million in February, and that T-Mobile and Morgan Stanley are among its enterprise customers.
In the consumer race, Anthropic's Claude has seen less adoption than OpenAI. Claude's traffic, a proxy for consumer interest, was about 2% of ChatGPT's in April, according to Web analytics firm Similarweb. Anthropic, founded in 2021 by a team that departed OpenAI over differences in vision, closed a $3.5 billion fundraise earlier this year. That valued the company at $61.4 billion. OpenAI is currently valued at $300 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Torrent Power signs LNG supply pact with BP Singapore
New Delhi: Gujarat-based Torrent Power Ltd (TPL) has signed a long-term sale and purchase agreement with BP Singapore Pte. Ltd, a subsidiary of global energy major bp, for the supply of up to 0.41 million metric tonnes per annum (MMTPA) of liquefied natural gas (LNG) from 2027 to 2036. The LNG will be strategically used by TPL to operate its 2,730 MW combined cycle gas-based power plants (GBPPs) across India, helping meet the country's growing electricity demand and support the grid during peak consumption periods, the company said in a statement. The agreement will also support Torrent Gas Ltd (TGL), the group's city gas distribution (CGD) arm, by catering to its rising LNG requirements. The fuel will be used to ensure reliable gas supply for households, commercial and industrial consumers, as well as compressed natural gas (CNG) vehicles, the statement added. 'Taking advantage of softness in LNG prices, TPL along with TGL further intends to explore medium- and long-term LNG procurement in response to the growing demand from its GBPPs and CGD networks respectively, aiming to enhance its portfolio diversity and reliably to meet energy supply needs of customers,' the statement said. The deal comes amid a government push to boost power generation from gas-based plants. Last month, the Centre directed such plants to increase output in anticipation of surging electricity demand. India's peak power demand is projected to hit 270 GW in FY26, up from the record 250 GW seen last year. As part of India's broader energy transition, natural gas—considered a cleaner alternative to crude oil—is being promoted across sectors, including domestic cooking and transportation. The ministry of petroleum has set a target to raise natural gas's share in India's energy mix to 15% by 2030, up from the current 6%. A part of the Torrent Group, TPL has an installed generation capacity of 4,838 MWp, comprising 2,730 MW of gas-based, 1,746 MWp of renewable, and 362 MW of coal-based capacity. Another 3,154 MWp of renewable projects and 3,000 MW of pumped storage capacity are under development. This brings TPL's total planned generation and storage capacity to 7,992 MWp and 3,000 MW, respectively. Under its power distribution business, TPL supplies nearly 31 billion units of electricity to over 4.21 million customers across Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Dadra and Nagar Haveli and Daman and Diu; and Bhiwandi, Shil, Mumbra, Kalwa in Maharashtra; as well as Agra in Uttar Pradesh.
India Today
an hour ago
- India Today
Adani faces US scrutiny over Iran LPG 'links', denies role, says unaware of probe
US prosecutors are investigating whether industrialist Gautam Adani's companies violated US sanctions by importing Iranian petrochemical products into India through Gujarat's Mundra port, The Wall Street Journal reported on Monday. However, the company categorically rejected any involvement in importing Iranian LPG by evading sanctions, stressing that it was not aware of a probe into the investigation by the US-based publication found tankers travelling between Mundra port, which is operated by the Adani Ports and SEZ Ltd, and the Persian Gulf, the report said, adding that it exhibited traits experts say are common for ships evading US Justice Department was reviewing the activities of several LPG tankers used to ship cargoes to Adani Enterprises, the report said, citing people familiar with the matter. In response, an Adani Enterprises spokesperson said, "Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG. Further, we are not aware of any investigation by US authorities on this subject."Last month, US President Donald Trump said all purchases of Iranian oil or petrochemical products should stop and threatened to impose secondary sanctions on countries buying oil from the Islamic development came after US authorities prosecuted the 62-year-old industrialist and his nephew, Sagar Adani, in November last year, alleging that they paid bribes to secure power supply contracts, and misled American investors during fundraising in the Group had called the allegations "baseless" and vowed to seek "all possible legal recourse".ADANI ENTERPRISES DENIES INVOLVEMENTIn a statement, a spokesperson for Adani Enterprises said The Wall Street Journal's report appeared to be based entirely on incorrect assumptions and speculation."Any suggestion that Adani Group entities are knowingly in contravention of US sanctions on Iran is strongly denied. Any assertion to the contrary would not only be slanderous but also deemed to be an intentional act to injure the reputation and interests of the Adani Group," the spokesperson statement also said that the Adani Group does not handle any cargo from Iran at any of its ports. "This includes any shipments originating from Iran or any vessels operating under the Iranian flag," it read."Additionally, the Adani Group does not manage or facilitate any ships whose owners are Iranian. This policy is strictly adhered to across all our ports,' it spokesperson said that the shipment referred to in The Wall Street Journal's report was handled through a routine commercial transaction via third-party logistics partners and was supported by documentation identifying Sohar, Oman, as the port of origin."We again state that we do not own, operate or track vessels (including the alleged SMS Bros/Neel) and cannot comment on the current or past activity of vessels we have not contracted and do not control. Whatever the duties and responsibilities of a bona fide importer are, we have fulfilled those," the statement spokesperson said even while LPG constitutes a very small and operationally non-material component of the company's overall revenue, all LPG trade conducted by Adani entities was fully compliant with applicable domestic and international laws, including US sanctions regulations."As an importer of LPG, the appropriate due diligence and KYC of the suppliers is undertaken to ensure that the entities/persons are not on the OFAC sanctions list. The logistics of LPG trade are managed by well-established third-party international suppliers and logistics firms, which manage shipping in accordance with global compliance standards, it said."In that regard, Adani purchases LPG on contracts from reputed international suppliers. The supplies are under valid contracts with the supplier having specific clauses that the product should be from non-sanctioned countries," the statement further said.(with inputs from Reuters)Must Watch IN THIS STORY#Gautam Adani#Adani Group
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
VinFast's ₹16,000-cr EV plant in TN misses out on India's incentive scheme
Vietnam-based electric vehicle manufacturer VinFast's $2 billion (₹16,000 crore) investment in Tamil Nadu failed to qualify for incentives under the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India'. Officials in the government explained that the scheme mandates investments to be capitalised in the applicant's books after the date of approval. This means that equipment and machinery must be put into use only after an applicant has been formally approved under the scheme. Investments made prior to approval do not count towards eligibility, news agency PTI reported. VinFast's plans and expansion strategy VinFast, the electric vehicle division of Vietnamese conglomerate Vingroup, is in the process of setting up its $2-billion manufacturing facility in Thoothukudi, Tamil Nadu. The company is also in talks with the governments of Andhra Pradesh and Telangana to expand its footprint further within India. VinFast aims to launch its VF7 and VF6 models in the Indian market ahead of the festival season this year. The company targets an annual production capacity of 150,000 electric vehicles in India over the next few years, with plans to export these vehicles to markets in West Asia and Africa. An official speaking to PTI said, 'They [VinFast] have already capitalised the investment so they will not qualify based on that investment for benefits under the scheme. They [VinFast] will have to make a fresh investment of ₹4,150 crore to qualify under the scheme. They are urging us to consider the investment already made, which we cannot accept.' Scheme guidelines and import concessions The recently announced guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India specify that approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers with a minimum CIF value of $35,000 at a reduced customs duty rate of 15 per cent. This concession is valid for five years from the date of application approval. To remain eligible, applicants must invest at least ₹4,150 crore in accordance with the scheme's provisions. The Scheme to Promote Manufacturing of Electric Passenger Cars was officially notified on March 15, 2024, as part of India's broader efforts to boost electric vehicle production domestically.
