Artificial intelligence startup Anthropic has reportedly forecast revenues of more than $850 million next year.
That’s according to a report Tuesday (Dec. 26) by The Information, citing a pair of sources with knowledge of the artificial intelligence (AI) company’s financial outlook. The report also says sources close to Anthropic believe it could even reach $1 billion in annualized revenue by the end of 2024.
The Information also says that Anthropic had told investors three months ago it was generating $100 million in annualized revenue and expected that figure would climb to $500 million by the end of next year. Reached by PYMNTS, Anthropic declined to comment.
The news comes days after a report that Anthropic was in talks to raise $750 million with the help of Menlo Ventures.
The company, whose co-founder siblings Dario Amodei and Daniela Amodei are veterans of competing AI firm OpenAI, had already landed investments from Amazon and Google.
As noted here in September when Amazon announced its investment, many companies are pouring money into Anthropic, among them the venture arms of both Salesforce and Zoom, as well as SK Telecom, South Korea’s largest operator.
The generative AI industry itself is expected to reach $1.3 trillion by 2032, and PYMNTS Intelligence has shown that 84% of business leaders believe this technology will have a positive effect on the workforce.
“AI is going to be an imperative for every company, and what you do with AI is what will differentiate your products,” Heather Bellini, president and chief financial officer at InvestCloud, said in an interview with PYMNTS.
“Functionally, it might get rid of a lot of the manual work people don’t want to do anyway and extract them up to a level where they can do more things that have a direct impact on the business.”
The news comes amid reports of Big Tech’s dominance in the AI investment field, with companies like Google and Microsoft accounting for two-thirds of the funds moving into the sector this year, outpacing venture capital (VC) firms.
“Over the past year, we’ve seen the market quickly consolidate around a handful of foundation models, with large tech players coming in and pouring billions of dollars into companies like OpenAI, Cohere, Anthropic and Mistral,” Nina Achadjian, a partner at venture firm Index Ventures, told the Financial Times.
“For traditional VCs, you had to be in early and you had to have conviction — which meant being in the know on the latest AI research and knowing which teams were spinning out of Google DeepMind, Meta and others,” added Achadjian.
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