OpenAI's Rival Anthropic Reaches $1.4 Billion in Annualized Revenue

Anthropic, a major competitor of OpenAI, has achieved an impressive milestone by reaching $1.4 billion in annualized revenue, reported The Information citing a person with direct knowledge of the company’s finances. This marks a significant growth from $1 billion at the end of 2024.

The company has been bolstered by investments from tech giants like Amazon and Google. Anthropic's AI chatbot, Claude, has been a key driver of this revenue growth.

Anthropic's latest financial results show that the company has achieved an annualized revenue of $1.4 billion as of early March 2025. The company recently raised $3.5 billion in a Series E funding round, giving it a post-money valuation of $61.5 billion. This funding will support the development of next-generation AI systems, expand compute capacity, deepen research in mechanistic interpretability and alignment, and accelerate international expansion.

Anthropic's AI chatbot, Claude, has been a key driver of this revenue growth. The company has also introduced new features such as Claude 3.7 Sonnet and Claude Code, which have been well-received in the market.

Anthropic has told investors it plans to generate up to $3.7 billion in revenue for the year and reduce its cash by nearly half this year from $5.6 billion last year.

Notably, while Anthropic's annualized revenue has reached $1.4 billion, OpenAI's annualized revenue is significantly higher at $3.4 billion. This puts OpenAI ahead in terms of revenue, reflecting its broader market reach and product offerings.

Anthropic has set ambitious growth projections for the next few years. The company aims to achieve annualized revenue of $2.2 billion by 2025, with a base projection of $12 billion and an optimistic forecast of up to $34.5 billion by 2027. This growth is driven by strategic partnerships, such as the substantial $4 billion investment from Amazon, and a focus on expanding its market footprint through AI model provisioning and leveraging cloud infrastructure.

Anthropic also plans to achieve cash flow positivity by 2027, significantly reducing its cash burn rate from $5.6 billion in 2024 to an anticipated $3 billion in 2025. These projections highlight the company's commitment to financial efficiency and sustainable growth while scaling its operations.