💰 Anthropic’s revenue is soaring, but its $2 trillion valuation is in doubt

Anthropic reportedly generated $16.8 billion in Q3 revenue, up nearly 50%, and remained profitable on an adjusted basis for the second consecutive quarter, according to the Financial Times.

The company also claims an 11% adjusted operating margin and $1.70 in revenue for every $1 spent on computing. It says it is cash-flow positive, too.

Quarterly revenue growth has slowed from over 140% to 46%.

Another complication is AI distillation. Anthropic estimates that 5–7% of its revenue comes from companies using Claude to train competing models, a revenue stream it expects to shrink as it cracks down on the practice.

Now, some prospective IPO investors reportedly believe Anthropic should be valued below $1.5 trillion, significantly less than the $2 trillion valuation bankers have discussed.

The business is profitable and still growing rapidly. The question is how much investors should pay for that growth as the pace slows.

@aitopics