Anthropic projects $70B in revenue by 2028: Report

Anthropic is projecting aggressive financial growth, targeting $70 billion in revenue and $17 billion in cash flow by 2028, driven by an expanding B2B strategy that includes partnerships with Microsoft, Salesforce, Deloitte, and Cognizant, alongside the introduction of specialized AI models. The company anticipates a significant improvement in profitability, with gross margins expected to reach 50% this year and 77% by 2028. This outlook for positive cash flow by 2028 notably contrasts with rival OpenAI's projected substantial cash burn, despite OpenAI's higher revenue targets, positioning Anthropic as a potentially more capital-efficient growth story in the competitive AI landscape.

Analysis

Anthropic projects aggressive financial growth, targeting $70 billion in revenue and $17 billion in cash flow by 2028, underpinned by a robust B2B strategy. This growth is fueled by expanding partnerships, including integrating models into Microsoft 365 apps and Copilot, and rolling out Claude to hundreds of thousands of employees at Deloitte and Cognizant. The company anticipates reaching $9 billion in ARR by the end of 2025 and $20-26 billion ARR for 2026, with 2024 API revenue expected to hit $3.8 billion.

A significant aspect of Anthropic's outlook is its projected profitability turnaround, with gross margins expected to improve from negative 94% last year to 50% this year and 77% by 2028. This efficiency is further highlighted by the expectation of positive cash flow by 2028. This contrasts sharply with rival OpenAI, which projects substantial cash burn, reaching $14 billion in 2026 and $115 billion through 2029, despite higher revenue targets.

Anthropic's focus on capital-efficient growth and B2B enterprise adoption positions it distinctly within the competitive AI landscape. The company, last valued at $170 billion, aims for a $300-400 billion valuation in future funding rounds, reflecting confidence in its financial trajectory. While liabilities include a $2.5 billion credit facility and a $1.5 billion legal settlement, the strong growth and profitability projections appear to outweigh these.

Key Decisions for Investors

• Closely monitor Anthropic's B2B partnership execution, particularly with Microsoft, Salesforce, Deloitte, and Cognizant, as these are central to achieving its aggressive revenue and ARR targets.
• Evaluate the company's trajectory towards positive cash flow by 2028 and its significant gross margin expansion, which differentiates its capital efficiency from key competitors like OpenAI.
• For private equity or venture capital investors, assess the potential for participation in future funding rounds given the projected valuation increase and strong fundamental outlook.