Anthropic vs. OpenAI: Which AI Giant Could Deliver Bigger Returns for Investors?
Both AI companies are heading toward blockbuster IPOs, but one is racing toward profitability while the other is prioritizing growth at almost any cost.
Anthropic vs. OpenAI: Which AI Giant Could Deliver Bigger Returns for Investors?
Overview
Two artificial intelligence companies are likely going to ask public markets to buy into them at valuations in the vicinity of $1 trillion this fall. Both are unprofitable. Both are spending money at a rate that would terrify CFOs at any other company on earth. And yet the race between Anthropic and OpenAI to go public sets up one of the most consequential investment decisions individual investors will face in the next 12 months, because despite their similarities, the two companies are not the same bet.
Here's why: Anthropic filed its S-1 confidentially on June 1 following a $65 billion Series H round that valued the company at $965 billion. This briefly made it the most valuable start-up in the world, ahead of OpenAI. Anthropic's annualized revenue run rate hit $47 billion in May, up from $4 billion just 14 months earlier. More importantly, Anthropic management has offered guidance predicting that it's headed for its first profitable quarter.
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Originally published at www.fool.com.
