Ahead of planned IPO, AI startup Anthropic tells investors it expects a profitable second consecutive quarter

AI startup Anthropic expects to remain profitable as it prepares for a potential $2 trillion IPO, easing concerns over AI firms’ heavy spending. The startup reported surging revenue, while CEO Dario Amodei warned about AI risks.

Artificial intelligence (AI) startup Anthropic has informed its investors that it expects to be profitable this quarter, as it seeks to ease investor concerns over the heavy spending and cash burn associated with leading AI companies.

Anthropic signals stronger financial position

The company informed a small group of shareholders that its adjusted operating income will be positive for the second consecutive quarter, the Financial Times reported, citing several people familiar with the matter. The calculation excludes expenses such as stock-based compensation. This comes at a time when Anthropic is preparing for a massive initial public offering (IPO).

According to two people familiar with the matter, Anthropic’s gross margins exceed 80 per cent before factoring in revenue-sharing arrangements with distribution partners such as Amazon and the expenses involved in training its AI models.

In the second quarter, the AI startup, which follows a financial cycle from January to December, reported an adjusted profit after its revenue surged 14 times to $11.5 billion from a year earlier. At the end of July, the company reached an annualised revenue of $65 billion, up from $9 billion at the end of last year.

Anthropic prepares for listing

Ahead of the planned listing, maintaining profitability would mark a major milestone for the five-year-old company. The startup has chosen Nasdaq for its IPO, which could value the AI firm at $2 trillion or more.

Anthropic was expected to release its prospectus last week. However, the company shared documents with a small group of investors and will respond to their questions before making them public.

Swati Gandhi