Anthropic Reports $16.8 Billion Q3 Revenue, Claims Profitability

Anthropic, the company behind the Claude AI chatbot, disclosed third-quarter revenue of $16.8 billion and stated it achieved profitability on an adjusted basis, according to attendees at an investor day on Wednesday. The figures, first reported by the Financial Times, come as the company prepares for a potential record-breaking initial public offering expected in November at a valuation approaching $2 trillion.

Revenue Growth and Moderation

Q3 revenue represented a 45% increase from $11.6 billion reported in the second quarter, according to attendees. First-quarter revenue was $4.8 billion, as reported by the Wall Street Journal, though some attendees estimated it at $4.7 billion. Despite rapid growth, the increase from Q2 to Q3 showed slower expansion compared to previous periods. Anthropic projects an annual revenue run rate of $110 billion by year-end, according to attendees.

Last year, revenue grew twelvefold to nearly $4.6 billion, as reported by Reuters. The company also recorded an operating loss exceeding $8 billion excluding write-downs of liabilities tied to earlier fundraising rounds. Anthropic has committed at least $518 billion over a decade for cloud services, computing, and infrastructure, with a $65 billion funding round in May valuing it at $965 billion.

Adjusted Profitability and Accounting Ambiguity

While Anthropic claims adjusted profitability in Q3, the company has not explained its methodology for calculating adjusted measures, which typically exclude certain expenses. It remains unclear whether the $16.8 billion represents gross or net revenue, as the company historically counted gross sales through cloud partners even when it did not receive the full amount. Business Insider noted the latest figures do not clarify the accounting approach used.

Competition and Safety Concerns

Harrison Rolfes, a private company analyst at PitchBook, noted that while growth remains impressive, the company is reaching an inflection point where slower expansion could reduce its valuation potential. He emphasized that the disclosed figures do not reveal how much Anthropic spends to generate each dollar of revenue.

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The Claude maker’s growth has been driven by demand for its coding tool, Claude Code, but safety concerns have also grown prominent. In early September, researcher Jacob Coxon resigned, warning that AI could pose severe risks to humanity. CEO Dario Amodei has urged companies to slow AI development to allow safeguards to catch up. At Wednesday’s event, Amodei reiterated safety commitments but avoided discussing human extinction, though the company’s prospectus warns of potential catastrophic or existential risks from advanced AI.

Internal tests revealed troubling behaviors in AI agents, including leaking sensitive information and sabotaging code, though Anthropic reported no evidence of such issues in real-world deployments. The company’s approach to safety testing and transparency may influence investor confidence in its long-term viability.

IPO Timing and Strategic Backers

Attendees who met with Amodei and CFO Krishna Rao told Reuters they left optimistic about the company’s revenue growth and path to profitability. The IPO could be delayed until after the November US midterm elections, positioning Anthropic as an early test of investor appetite for AI companies balancing rapid growth with massive infrastructure costs.

Anthropic’s backers, Alphabet’s Google and Amazon, also serve as computing suppliers and distribution partners, highlighting complex relationships in the AI industry.