Anthropics earnings overtake OpenAIs for the first time: revenue engine

Anthropic has reportedly overtaken OpenAI in quarterly sales for the first time — a stunning reversal for the ChatGPT maker in its bitter rivalry with the startup founded by a group of its former employees.Anthropic more than doubled its revenue to $11.6 billion during its second quarter and reported a small adjusted profit, according to the Wall Street Journal.That was well above OpenAI’s second-quarter revenue of $6.7 billion — an 18% increase from the previous quarter’s $5.7 billion, the Journal reported, citing people familiar with the matter.OpenAI said in March that it closed a financing deal with $122 billion in committed capital at an $852 billion post-money valuation.Anthropic followed in May with a $65 billion funding round at a $965 billion post-money valuation — putting the breakaway rival’s latest announced private valuation above OpenAI’s.Now, Anthropic’s second-quarter figures show it pulling ahead on reported revenue, too.OpenAI’s operating loss, including stock-based compensation, widened to $12.3 billion during the quarter from $9.3 billion in the first quarter, according to the Journal.Anthropic, meanwhile, reported an adjusted profit and told investors it had made progress using computing resources more efficiently, though the Journal said the company’s methodology for calculating the profit was not disclosed.“Hundreds of millions of free chatbot users represent OpenAI’s head start, but they don’t generate revenue.They only generate cost,” Rob Collie, a former Microsoft executive and founding engineer on Power BI who now runs consulting firm P3 Adaptive, told The Post.“A paying business customer with AI wired into their workflow is a revenue engine,” he said.“Same core AI technology, two very different businesses – and this quarter, we found out which one is a better business.”Ravi Sawhney, founder and CEO of product design firm RKS Design, said OpenAI’s early dominance was no guarantee it would remain on ...