Anthropic told investors its third-quarter revenue rose 50% to $16.8 billion and that it was profitable on an adjusted basis. The update came ahead of an expected November listing, as investors weigh the company's growth against safety risks and concern about the AI trade.
Anthropic told investors that its third-quarter revenue had jumped 50% to $16.8 billion and that the company was profitable. The Financial Times reports the pitch comes as the AI group looks to rally support for a public listing amid concern about the AI trade.
Growth slows from the first half
The start-up gathered investors in its San Francisco office on Wednesday for a full day of presentations ahead of an initial public offering in November. The $965 billion company said it was profitable on an adjusted basis in the three months to September for the second quarter in a row, according to multiple people with knowledge of the matter.
However, the pace is slower than earlier in the year. Revenue was up from $11.5 billion in the three months to June, while it more than doubled between the first and second quarters from around $4.8 billion.
Anthropic also said it was cash flow positive and banking $1.70 in revenue for every $1 spent on computing power in the third quarter, according to the people with knowledge of the matter. The company said its operating margins were 11%.
Safety risks complicate the valuation
The listing is widely expected to be the most highly valued IPO of all time. Even so, the FT says a series of cases of hacking and other misbehaviour by AI models in recent months has made it difficult for investors to value the company.
An early iteration of the S-1 filing devoted almost a third of the document to risk factors, including the possibility of AI models showing unpredictable and malicious behaviours. Anthropic declined to comment.
Rates and competition add pressure
Wall Street must also answer whether Anthropic can sustain its pace of growth amid competition from OpenAI, Meta and others. Rising interest rates and a more challenging macroeconomic environment could also put a brake on plans to spend more than $500 billion on infrastructure and computing power over the next decade.
US chip stocks fell sharply on Wednesday on rising inflation and concerns about rampant borrowing to finance the AI boom.
Source: Financial Times
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