Amazon and Google-Backed Anthropic’s Annualized Revenue Jumps to $3B

Amazon (AMZN) and Alphabet (GOOGL)-backed artificial intelligence (AI) startup Anthropic reached $3 billion in annualized revenue at May end. This marks a significant jump from $1 billion in December 2024 and $2 billion around the end of March 2025. It reflects robust demand for Anthropic’s AI offerings in the enterprise market.

Anthropic Gains from Solid AI Demand

The demand for AI offerings of rivals, mainly Microsoft (MSFT)-backed OpenAI’s ChatGPT, in the consumer space has received a lot of attention. However, the impressive surge in Anthropic’s revenue indicates the growing adoption of AI by enterprises.  

Notably, a major driver of Anthropic’s revenue is the code-generation ability of its models, with enterprises seeking to automate software development. Based on the success of Anthropic’s models, similar products by other companies in “codegen” have also seen increased adoption in recent months.

Citing Alex Clayton, a General Partner at venture capital firm Meritech Capital Partners, Reuters noted that software-as-a-service (SaaS) company Snowflake (SNOW) took six quarters to boost its revenue from $1 billion to $2 billion. In fact, based on his analysis of IPOs (initial public offerings) of more than 200 software companies, Clayton stated that the kind of growth rate achieved by Anthropic has never occurred before. He also noted that the $3 billion figure doesn’t include revenue from consumer subscriptions for Anthropic’s Claude chatbot.  

Anthropic vs. OpenAI: The AI Race Intensifies

Reportedly, rival OpenAI expects to end 2025 with more than $12 billion in revenue, marking a massive jump from $3.7 billion last year. Most of this revenue comes from ChatGPT subscriptions. OpenAI has not disclosed its revenue from enterprise business, but highlighted in May that the paying seats for its ChatGPT enterprise offering have risen to 3 million from 2 million in February.

While Anthropic is witnessing solid traction from enterprises, it is lagging OpenAI in the consumer space. According to web analytics firm Similarweb, traffic for Anthropic’s Claude stood at about 2% of ChatGPT’s level in April.

A fundraising round earlier this year valued Anthropic at $61.4 billion. In comparison, OpenAI is currently valued at $300 billion. Overall, the competition in the AI space is heating up, with several startups seeing strong backing from tech giants.

Let’s look at Wall Street’s ratings for Amazon and Alphabet, two key investors in Anthropic.

Wall Street has a Strong Buy consensus rating on both Amazon and Alphabet stocks, reflecting confidence in their growth potential, supported by AI-related tailwinds.