Artificial intelligence startup Anthropic forecasts more than $850 million in annualized revenue rate by the end of 2024, tech publication The Information reported on Tuesday, citing two people with knowledge of the company’s financial picture. Backed by tech giants Amazon and Alphabet’s Google, Anthropic is one of several companies working on generative AI – which can create its responses and content. The forecast is a testament to the rapid growth of Anthropic’s underlying technology and the broader industry’s growing interest in generative AI.
Anthropic primarily generates revenue through the sale of its Claude chatbot, which can create a range of speech and text based on a set of instructions. Employees in various industries use the bot for various tasks, including communicating with customers and other staff members. The company’s generative AI capabilities have made it particularly popular with enterprise users, with some using it to auto-generate essays and even poetry.
As the newest player in generative AI, Anthropic has been working to distinguish itself from its peers by offering a broader range of functionality. The company is also focusing on data privacy, a growing concern for many companies in the age of GDPR.
The company is also leveraging its connections with major cloud providers, with Amazon and Google investing in the business. In return, Anthropic is expected to receive billions of dollars in server rentals to power the massive Claude model designed to generate natural conversational speech.
In April, Anthropic published a deck outlining a new AI model called “Claude-Next.” The company said the model would surpass current leading AIs by a factor of ten and require extensive computational resources. The company is expected to invest about $1B in the project over 18 months.
Aside from the Claude-Next model, Anthropic focuses on expanding its TAM with various other projects. The company plans to expand its AI research team and hire more developers and engineers. Anthropic’s revenue projections indicate that it is making headway in becoming the dominant force in the generative AI space.
The company’s projected sales numbers are significantly higher than what it told investors three months ago when it said it was generating $100 million at an annualized rate and expected that figure to reach $500 million by the end of 2024. However, the company isn’t expected to achieve its projected revenues unless it can keep increasing its usage of its generative AI technologies.