Anthropic says revenue surged 1,100% ahead of IPO

Anthropic, a leading AI company based in San Francisco, announced on Monday that its revenue surged to US$17 billion in the third quarter, marking a staggering 1,100% increase from US$1.4 billion in the same period last year. The San Francisco-based firm, founded in 2021 by former OpenAI researchers headed by CEO Dario Amodei and his sister Daniela, who now serves as president, is focused on AI safety.

The company's upcoming Wall Street listing, scheduled for later this month, is seen as a crucial indicator of whether the current AI spending boom, which has injected billions into the US economy, will persist. Although Anthropic experienced a net loss of US$23.3 billion in the third quarter, the majority of the loss was due to non-cash accounting charges related to the company's rising valuation.

The firm also disclosed an operating loss of US$567 million, primarily attributed to higher expenses for short-term computing resources. In its amended filing, Anthropic revealed it has committed to spend approximately US$895 billion on computing power, with around US$70 billion of that expenditure due before September 2027. The company's initial public offering (IPO) is anticipated to raise around US$100 billion, with a valuation projected between US$1.5 trillion and US$2 trillion, surpassing SpaceX's record fundraising of US$86 billion in June.

The IPO is viewed as a significant test of investor confidence in the AI boom, as the pool of potential investors expands to include retail traders for the first time in a standalone AI giant. Anthropic's 400-page filing, which dedicated more than 90 pages to potential risks, notably those posed by the rapidly growing AI sector, has drawn attention due to the increasing number of reports highlighting unexpected and harmful behaviors of AI systems.

To address these concerns, Anthropic has adopted a public benefit corporation structure, legally obligated to balance AI safety with shareholder returns. Notably, the co-founders will retain 50.1% of shareholder voting power through a single special share, limiting investors' influence over the company's direction. As major players in the AI spending surge, such as Meta and Alphabet's Google, also prepare for public market offerings, Anthropic's IPO joins a wave of fundraising plans from tech giants.

Oracle, another significant participant in the AI boom, announced its intent to proceed with a US$20 billion funding plan despite concerns about its financial exposure.