Anthropic set to achieve its first profitable quarter! This quarter's revenue doubles to $10.9 billion.

Local time Wednesday, according to media reports, Anthropic’s revenue is expected to more than double in the second quarter, reaching $10.9 billion. This explosive growth will help the company achieve operational profitability for the first time.

As part of an ongoing round of financing, the company disclosed these figures to investors. This round of financing is likely to push its valuation above OpenAI. These projections offer a glimpse into the rapid rise of this startup—a company that once lagged behind in the artificial intelligence race but is now challenging the conventional belief that massive spending needs would drag down the near-term profitability of AI companies.

Anthropic’s first quarter sales reached $4.8 billion. Its quarterly revenue growth has now outpaced Zoom during the pandemic, as well as Google and Facebook’s growth before their respective IPOs. The company expects to realize $559 million in operating profit in the June quarter.

Last summer, Anthropic provided investors with a set of financial data, which at the time showed the company expected to achieve full-year profitability no earlier than 2028. Due to massive computational needs, the company plans to increase spending and thus may not maintain profitability throughout the year. Its operating profit includes the cost of training new models but excludes stock-based compensation.

Since the beginning of the year, Anthropic’s sales have exploded as businesses around the world rush to adopt its popular suite of programming tools.

Anthropic, OpenAI, and SpaceX are all racing toward IPOs, each with valuations potentially surpassing $1 trillion—a testament to investors’ expectations that AI will reshape industries and markets. According to media reports, OpenAI may file paperwork as soon as this Friday to indicate its IPO plans, while SpaceX is expected to go public as early as June.

Anthropic’s Claude AI model has become a phenomenon, with users beginning to test its ability to perform agentic tasks—that is, sustained work to fulfill user needs.

Earlier this month at a developer conference in San Francisco, CEO Dario Amodei joked that the company’s revenue growth had become overwhelming and he hoped to see more normal numbers.

The revenue growth shows just how rapidly fortunes can change for different participants as this race continues.

A few months ago, the White House listed the company as a security risk, with Trump instructing federal agencies to cut ties with Anthropic. Previously, the company refused to agree to the Department of Defense’s request to allow its technology to be deployed for all legal purposes. Since then, the relationship has improved, in part due to Anthropic repeatedly meeting with U.S. government officials regarding its Mythos model—which, out of cybersecurity concerns, has only been released to a small number of companies.

Demand for Anthropic’s products has strained its computational resources and forced it to limit some user access. To help expand capacity, the company signed a series of new data center agreements in recent weeks, including one with Musk’s SpaceX.

In the first quarter, for every $1 Anthropic earned, it spent $0.71 on computing power. This quarter, it expects its computing expenses per dollar earned to drop to $0.56, indicating greater operational efficiency as the business expands.

Anthropic mainly uses chips developed by Google and Amazon, which tend to cost less than Nvidia’s products. Compared to competitor OpenAI, the company has taken a more conservative approach in its commitment to future data center spending. In addition, its consumer business is smaller, meaning it doesn’t have to subsidize as many free users as OpenAI does for ChatGPT.

It is currently unclear what accounting methods Anthropic uses to record revenue and costs, as it is not yet subject to public company financial reporting requirements.

Anthropic and OpenAI differ in their accounting treatment of revenue, making comparisons between the two companies difficult. Anthropic counts revenue from selling its technology through cloud partners, whereas OpenAI does not. A female spokesperson for Anthropic once said this practice is in accordance with standard accounting conventions, as the company is the principal in such transactions.

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