Anthropic tells investors Q3 revenue jumped 45% to nearly $17 bln, FT reports

Anthropic disclosed to investors that its third-quarter revenue surged, reaching nearly $16.8 billion, marking a sharp increase of around 45%, according to the Financial Times. The report, gleaned from sources familiar with the firm's performance, suggested that the growth rate had slowed from earlier in the year and fell short of some expectations.

The company revealed on Wednesday during a full-day presentation to investors in its San Francisco office, that it was profitable on an adjusted basis in Q3, marking its second consecutive quarter of reported profitability. The report also highlighted that Anthropic was cash flow positive, generating $1.70 in revenue for every dollar spent on computing power in the last quarter.

Despite the encouraging financial news, the report noted that Anthropic's revenue growth was decelerating compared to the earlier in the year. Analysts had anticipated that the company's annualized revenue would exceed $100 billion, a figure it was now expected to fall below.

Anthropic's situation is fraught with challenges as it competes with OpenAI to dominate the AI model market. Recent months have seen OpenAI release GPT-6 Astra, a model that has put pressure on Anthropic. Moreover, cheaper and nearly as potent Chinese AI models pose additional threats to Anthropic's revenue.