Anthropic, the artificial intelligence (AI) startup, backed by Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google and Amazon.com (NASDAQ:AMZN), is reportedly projecting to more than double and potentially nearly triple its annualized revenue run rate next year.
Enterprise Demand Drives The Boom
The company is projected to reach its internal goal of a $9 billion annual revenue run rate by the end of 2025 and is aiming for over $20 billion in annualized revenue in its base scenario and up to $26 billion in its best-case scenario for the next year, according to a Reuters report on Wednesday.
The growth is fueled by strong demand from enterprise clients, the report said.
The company also revealed that its annual revenue run rate is nearing $7 billion this month, up from over $5 billion reported in August, it added.
Anthropic did not immediately respond to Benzinga‘s request for comment.
On Wednesday, Anthropic also launched an updated version of its most affordable AI model, Haiku, aiming to attract businesses seeking powerful AI at a fraction of the cost of its more advanced offerings.
See Also: Trump Says He Wasn’t Happy India Was Buying Russian Oil And Now Modi Has Agreed To Stop Doing It: ‘Big Step’
Rapid Growth Amid Fundraising And Rising Valuations
The company’s explosive growth comes on the back of its valuation, which surged last month to $183 billion after a $13 billion funding round.
Anthropic’s rapid growth has also sparked a debate about the durability of its enterprise-driven path compared to the consumer hype surrounding other AI models. Despite not dominating the consumer market like OpenAI’s ChatGPT, Anthropic has quietly secured a significant share of the enterprise market.
Meanwhile, OpenAI has reportedly revealed its five-year plan to pursue new revenue streams, secure debt partnerships, and raise funds to support its $1 trillion spending commitment.
READ NEXT:
- Musk, Anthropic Battle To Build Next Microsoft, Salesforce
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
