Amazon (AMZN) and Alphabet’s (GOOGL) Google-backed Anthropic said that its forecasted revenue could reach $34.5 billion in 2027. The news was first reported by The Information. The artificial intelligence (AI) startup disclosed these figures during an investor presentation.
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Anthropic is one of the best positioned private AI companies that competes with ChatGPT maker OpenAI. Google has invested roughly $3 billion in Anthropic to date via two funding rounds. Meanwhile, Amazon has invested close to $5 billion.
Anthropic Is Growing Rapidly and How
Notably, Anthropic said that it expects to generate revenue of $2.2 billion in 2025, and in the base case scenario, it would make at least $12 billion in 2027. That still represents a massive 445% jump. Meanwhile, Anthropic is currently burning cash, like most startups. This year, it expects to spend $3 billion in cash, much lower than last year’s $5.6 billion. Interestingly, management expects to stop burning cash in 2027.
Anthropic hosts the Claude family of foundation AI models, which possess multimodal capabilities such as text and image interpretation. Users can access Claude directly through Anthropic as well as via third-party cloud service providers. Amazon Web Services (AWS) is also one of the sellers of Anthropic’s models. During its latest funding round in January, Anthropic was valued at close to $60 billion.
Is Google or Amazon a Better Stock?
Both Google and Amazon are betting big bucks on the AI arms race. Amazon plans to spend $100 billion on AI infrastructure this year, while Google expects to spend $75 billion on the same.
We used the TipRanks Stock Comparison tool to understand how the two tech giants compete against each other. We can see that currently, Wall Street is more bullish on Amazon stock with a Strong Buy consensus rating. Meanwhile, both have nearly the same upside potential of approximately 17.5% and score the same Smart Score of 9.
However, Google seems to be trading at cheaper P/E (price-to-earnings per share) multiple than Amazon currently, implying that GOOGL stock is cheaper.
