Anthropic Overtakes OpenAI in Revenue as Losses Widen

AI developer Anthropic has overtaken OpenAI in the frontier artificial intelligence sector, reporting second-quarter revenue of $11.6 billion—a jump of more than 50% from the first quarter. The company recorded its first operating profit of $559 million and now projects revenue could reach $200 billion by 2028, a significant increase from its previous $47 billion run rate.

OpenAI reported second-quarter revenue of $6.7 billion, representing an 18% increase over the first quarter. However, the company's operating losses widened to $12.3 billion, and its operating margins have declined. This slowdown is attributed to stalling momentum for ChatGPT and cautious corporate spending. In response, OpenAI has pivoted toward AI agents and reduced prices for two of its newest models.

The shift in momentum has triggered senior executive departures at OpenAI, including Chief Revenue Officer Denise Dresser. The financial disparity also impacts infrastructure partners. While Alphabet Inc. and Amazon.com may benefit from Anthropic's growth, Oracle is viewed as particularly vulnerable due to its $300 billion cloud computing contract with OpenAI. Some market analysts suggest that frontier models are becoming interchangeable commodities, comparing the current rivalry to the competition between Coca-Cola and Pepsi.