Key Takeaways
- Anthropic projected to reach profitability by 2028, outpacing OpenAI
- OpenAI burning $9 billion against $13 billion revenue in 2024
- Both companies currently spending ~70% of revenue on operations
- Anthropic’s burn rate expected to drop to 9% by 2027
Anthropic is positioned to achieve profitability significantly faster than rival OpenAI, according to financial documents reviewed by The Wall Street Journal. While both AI giants are investing heavily, their paths to financial sustainability differ dramatically.
Financial Projections Show Diverging Paths
Internal documents reveal Anthropic expects to break even for the first time in 2028. This contrasts sharply with OpenAI’s current trajectory of burning through $9 billion despite generating $13 billion in sales this year.
Anthropic anticipates spending nearly $3 billion against $4.2 billion in revenue. Both companies currently operate with cash burn rates around 70% of their revenue.
The efficiency gap widens in forward projections. By 2026, Anthropic’s burn rate is forecast to drop to approximately one-third of revenue, compared to 57% for OpenAI. The following year, Anthropic’s rate is expected to decline further to just 9%, while OpenAI’s remains unchanged.
OpenAI’s Massive Infrastructure Investment
OpenAI’s substantial spending focuses heavily on infrastructure and future capabilities. The company is investing nearly $100 billion in additional data center capacity to prepare for potential demand surges.
Recent launches include the Sora video application and Atlas web browser. The company is also developing multiple new products:
- Consumer hardware device
- E-commerce and advertising tools for ChatGPT
- Humanoid robotics technology
OpenAI allocates significantly more computing power to new AI research compared to Anthropic. CEO Sam Altman defended this strategy on X, stating: “We believe the risk to OpenAI of not having enough computing power is more significant and more likely than the risk of having too much.”
Confidence in Financial Health
OpenAI’s Chief Financial Officer Sarah Friar recently emphasized the company’s financial stability. She noted healthy margins and the ability to break even if desired, pointing to rapid enterprise business growth.
Friar confirmed the company continues testing new business models while maintaining its aggressive investment posture.
