Anthropic, the hot artificial intelligence company best known for its cutting-edge, AI-based business products, is in the news this week with jaw-dropping financial projections. The firm projects that it will bring in at least $70 billion in revenue by 2028. This growth will be fueled by the continued explosive adoption of its services and its disciplined financial management. This projection is a historic jump from past years. The company is obviously hoping to set itself apart as it dives headlong into the highly competitive AI arms race.
Anthropic’s growth path is exceptional. In pursuit of expansion, they’ve just raised a $2.5 billion credit facility, providing them with strong financial firepower to fund their rapid ongoing development projects. The tech company is going through an extremely challenging period at the moment. This funding comes just in time to assuage a recent $1.5 billion legal settlement from a class action copyright lawsuit. Though these challenges don’t discourage them, Anthropic stays committed to their mission.
By the end of 2025, Anthropic hopes to meet its target. The company is on a run rate to $9 billion ARR. The company’s long-term goals are even more ambitious. By FY2026, their goal is to reach $20-$26 billion in ARR. Seen together, these projections paint a picture that suggests not only confidence in their product offerings but a smart, phased approach to the scaling up of operations.
Anthropic’s forward annual earnings are estimated at $3.8 billion this year. This rapid expansion has been largely powered by sales from access to its suite of generative AI models through an application programming interface (API). To say this revenue stream has been profitable is an understatement. The company has made an impressive recovery after last year posting a jaw-dropping -94% gross profit margin. Anthropic anticipates its gross profit margin increasing to 50% this year. They’re not stopping there; in fact, they’re planning on doing even better, targeting 77% by 2028.
The company’s flagship product, Claude Code, is on track to deliver a staggering $1 billion annualized revenue run rate. We’re almost there with this milestone too! In July—the same month that Claude Code was first launched—Claude Code helped create nearly $400 million in run-rate revenue. This significant growth is a testament to the rising need for Anthropic’s AI offerings and their applicability across different industry segments.
Currently valued at $170 billion in its most recent funding round, Anthropic has a lot of financial upside ahead of it. If the company chooses to float more money, it could do so at a valuation of $300 billion to $400 billion. The valuation would exemplify the optimism investors have as to Anthropic’s long-term viability within the expanding AI industry.
Anthropic’s projections for future cash flow aren’t much more realistic. The shortfall has caused concerned investors to press the firm to produce at least $17 billion in cash flow by 2028. This projections demonstrates its commitment to financial discipline even with ambitious growth plans. This predictable cash flow will be critical both to continuing operations and investing in further innovation.