NRT briefing
Anthropic flags revenue surge to investors ahead of stock market debut
Based on reporting by BBC News.
The Brief
Artificial intelligence company Anthropic has reported a 45% surge in quarterly revenue to $16.8bn (£12.7bn) in the three months to the end of September, according to a briefing for prospective investors seen by the BBC. The company, which develops the Claude AI model, is laying the groundwork for a stock market listing expected before the end of the year.
Anthropic's revenue has risen each quarter this year, from $4.7bn in the first quarter to $11.6bn in the second. The company also reportedly told investors at its San Francisco headquarters that it had made a profit for the second consecutive quarter. A spokesperson declined to comment.
The news comes amid investor concerns over the massive spending on AI infrastructure. Shares in chip makers including AMD, Nvidia, and Intel fell sharply on Wednesday, while Asian tech stocks also tumbled on Thursday. South Korea's Kospi and Kosdaq trading was temporarily halted after drops exceeding 8%, and Japan's Nikkei 225 lost nearly 5%.
The market falls followed remarks by Broadcom CEO Hock Tan, who said investors have "extreme expectations" and are "almost like they are in a casino." US inflation data released Wednesday, which showed price rises accelerating more than expected, added to worries that the Federal Reserve may raise borrowing costs.
NRT commentary
How We See It
Anthropic's revenue surge is a bright spot in an AI market increasingly clouded by doubts. The company's move toward a public listing, while rivals like OpenAI delay, suggests confidence in its business model. Yet the broader sell-off in tech stocks, triggered by concerns about excessive AI spending, reveals a fragility that could test even the strongest players.
Investors are right to question the sustainability of infrastructure spending. Hock Tan's casino analogy may be harsh, but it underscores the speculative fever that has driven valuations. If inflation forces the Fed to keep rates higher, the easy money that fueled AI's growth could dry up, leaving companies like Anthropic to prove profitability in a harsher climate.
Anthropic's reported profitability is encouraging, but it must navigate not only market volatility but also safety concerns that have prompted its own CEO to call for a slower pace of development. Balancing growth with caution, and now public market scrutiny, will be a defining challenge.
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