anthropic projects $70b in revenue by 2028: report

Anthropic's Projected Financial Growth

According to reports from The Information, Anthropic anticipates generating up to $70 billion in revenue by 2028. This substantial growth is predicted to result in a cash flow of $17 billion. The primary driver behind these projections is the increasing adoption rate of Anthropic’s suite of business products.

Revenue Projections and Growth

Recent data indicates a significant upward trend for Anthropic’s financial performance. Reuters previously reported that the company is expected to more than double, and potentially almost triple, its annual revenue run rate in the coming year.

Specifically, Anthropic is on course to achieve a $9 billion Annual Recurring Revenue (ARR) by the close of 2025. Furthermore, the company has established a target of $20 billion to $26 billion ARR for 2026.

API Revenue and Model Performance

This year, Anthropic forecasts revenue of $3.8 billion from providing access to its AI models via an Application Programming Interface (API). This figure represents a doubling of the $1.8 billion in API revenue that OpenAI is projected to generate.

Claude Code is rapidly gaining traction, nearing $1 billion in annualized revenue, a considerable increase from the $400 million reported in July.

Strategic Partnerships and B2B Focus

Anthropic’s focused business-to-business (B2B) strategy has become increasingly apparent in recent weeks. A key partnership with Microsoft involves integrating Anthropic’s models into Microsoft 365 applications and Copilot.

The company has also broadened its collaboration with Salesforce. Plans are underway to deploy its AI assistant, Claude, to hundreds of thousands of employees at both Deloitte and Cognizant.

Model Improvements and Expansion

Over the past two months, Anthropic has introduced more affordable and efficient models – Claude Sonnet 4.5 and Claude Haiku 4.5. These models are designed to appeal to businesses implementing AI solutions at a large scale.

Anthropic has also expanded Claude’s capabilities within the Financial Services sector and launched Enterprise Search. This feature allows businesses to connect all their internal applications to Claude.

Potential Fundraising

The company’s growth trajectory may lead to further fundraising efforts. Anthropic last secured $13 billion in investment in September, in a round that valued the company at $170 billion.

Should Anthropic seek additional funding, it is anticipated to target a valuation between $300 billion and $400 billion.

Cash Flow and Profitability

Projections indicate a $17 billion cash flow for 2028. It’s important to note that cash flow differs from profit; it reflects the net amount of money entering and leaving the company through operations, investments, and financing.

Anthropic’s current liabilities include a $2.5 billion credit facility and a $1.5 billion settlement related to a copyright lawsuit filed by a group of authors.

The company anticipates its gross profit margin to reach 50% this year and 77% in 2028, a significant improvement from the negative 94% recorded last year.

Comparison with OpenAI

OpenAI, Anthropic’s primary competitor, recently achieved a valuation of $500 billion and is also pursuing a B2B strategy alongside a strong consumer focus, driven by its 800 million weekly users.

OpenAI expects to generate $13 billion in revenue this year and reach $100 billion in revenue by 2027. However, unlike Anthropic’s projected positive cash flow, OpenAI anticipates substantial losses, with cash burn reaching $14 billion in 2026 and escalating to $115 billion by 2029 due to increased infrastructure spending.