Anthropic, the Amazon-backed artificial intelligence unicorn, is firing on all cylinders and beating OpenAI, a company that has mapped a plan to spend over $1 trillion in data centers.
Anthropic revenue and profits are soaring
According to the WSJ, its second-quarter revenue is expected to come in at $10.9 billion, more than double what it made in the first quarter. This growth is mostly because more people and companies than ever before are using its Claude platform.
Most notably, the company is on track to hit its first quarterly profit for the first time ever. Its operating profit is expected to jump to $559 million in the June quarter.
These numbers help to justify its soaring valuation. It recently raised $30 billion at a $900 billion valuation, and chances are that it will be the fastest one to hit a $1 trillion valuation. Indeed, the company’s growth is faster than what Google and Facebook used to experience when they went public.
Anthropic is beating OpenAI
Anthropic and OpenAI have taken different approaches in their operations. It has worked behind the scenes and avoided making major announcements other than its product releases. Also, it has avoided entering highly expensive ventures like video and image generation.
Mythos, its newest model, has sent shockwaves around the world because of its security features. Policymakers are concerned that it can cause vulnerabilities in the financial and other sectors.
OpenAI, on the other hand, has launched several projects, including the now-defunct video generation feature. It has also entered large deals with companies like AMD and Broadcom. It also made partnerships with Oracle, SB Energy, CoreWeave. OpenAI is also part of the Stargate project that seeks to spend over $500 billion in data centers.
READ MORE: Why is OpenAI missing targets even as AI investment hits record highs?
At the same time, the company does not depend on the highly expensive NVIDIA chips. Instead, it focuses on chips by companies like Microsoft and Google that are less expensive. Most importantly, while many consumers use its service, it mainly focuses on corporate customers, allowing it to offer full prices.Looking forward, focus will be on the upcoming OpenAI IPO, which will provide more color on its business. Anthropic will then go public later this year.
The post Anthropic news: revenue growth surges, eyes first profit, beating OpenAI appeared first on Invezz