Anthropic Reports $16.8 Billion Q3 Revenue Ahead of $2 Trillion IPO
Anthropic reported $16.8 billion in Q3 revenue, up 46% sequentially, as the company prepares for a massive November IPO targeting a valuation above $2 trillion.
Anthropic reported $16.8 billion in revenue for the third quarter, marking a 46.1% increase compared to $11.5 billion in the second quarter. The company informed investors that it was profitable on an adjusted basis during the past quarter. However, analysts noted that growth has decelerated significantly compared to the beginning of the year, when revenues surged nearly 140% between the first and second quarters.
Upcoming IPO and Valuation
Valued at $965 billion in its last funding round, Anthropic is preparing to go public in the coming weeks at a valuation exceeding $2 trillion, targeting a $100 billion raise. During investor meetings ahead of the November IPO, executives highlighted safety philosophies and efficiency measures. While SemiAnalysis estimates the annualized revenue run rate at $74 billion, down from summer projections of over $100 billion, investors project a $110 billion rate by the end of 2026.
"Anthropic is in a two-horse race, unlike the one-horse race of the first half of the year," said analyst Joey Brokhart from SemiAnalysis.
Factors Impacting Growth
Anthropic reported positive cash flow, generating $1.70 in revenue for every dollar spent on computing power. The growth deceleration is partly attributed to aggressive crackdowns on "model distillation"—a form of data extraction used by rivals to train competing AI models. Distillation previously accounted for 5% to 7% of Anthropic's revenue before the company significantly curbed the practice in Q3. Intensified competition with OpenAI and open-source Chinese models has also driven down prices across the sector.
