Anthropic has told a small group of shareholders that it expects to remain profitable for a second consecutive quarter, according to the Financial Times, as the artificial intelligence company prepares for a potential blockbuster initial public offering.
The Claude maker expects its adjusted operating income to remain positive this quarter, according to people familiar with the matter, as cited by FT. The measure excludes costs such as stock-based compensation.
Anthropic Reports Strong Revenue Growth
Anthropic recorded an adjusted operating profit in the second quarter after revenue jumped 14-fold from a year earlier to $11.5 billion. Its annualised revenue reached $65 billion at the end of July, compared with $9 billion at the end of last year.
The company's gross margins are above 80% before accounting for revenue shared with distribution partners such as Amazon and the cost of training its AI models, according to the report.
Sustained profitability would mark a major milestone for the five-year-old company, particularly as investors continue to assess the heavy spending required to develop frontier AI models.
Also Read: Can AI Kill Humans? Anthropic CEO Backs Former Employee's Apocalypse Fears: Here's Why
Anthropic Prepares For Potential IPO
Anthropic has selected Nasdaq for its planned IPO, which could value the company at $2 trillion or more. The company had been expected to unveil its prospectus last week but instead shared documents with a small group of investors and plans to address their questions before making them public.
The potential listing comes as the AI industry faces increasing scrutiny over safety, employment and the environmental costs of developing increasingly powerful models.
Anthropic CEO Dario Amodei recently called for the industry to slow the pace of AI development, citing concerns over the capabilities of new models. His comments were echoed by OpenAI CEO Sam Altman and SpaceX CEO Elon Musk.
Also Read: Anthropic Picks Nasdaq For Potential IPO: What Investors Need To Know
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.