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Investing.com - Artificial intelligence startup Anthropic is on pace to turn a profit faster than ChatGPT maker and close rival OpenAI, according to the Wall Street Journal.
Citing documents shared with investors, the WSJ said Anthropic, whose Claude chatbot services have become popular among businesses and coders, now expects to break even in 2028.
OpenAI, meanwhile, sees its operating losses increasing to around $74 billion, as the company which has become a figurehead for a surge in enthusiasm around AI intends to continue spending heavily on its computing capabilities. The report said OpenAI now projects it will post a profit in 2030.
The documents are indicative of the differing strategies being adopted by the world’s two largest AI startups, the report suggested, noting that OpenAI plans to spend far more on chips and data centers and dish out stock-based compensation to entice large investors. Anthropic, as a result, is tipped to carry wider margins than OpenAI over the next five years, the WSJ said.
Massive spending plans have become increasingly common in the AI segment, reflecting a push by mega-cap technology groups to bolster their position in the race to both harness and monetize the nascent technology. But investors have begun to flag worries over the scope of the capital expenditures and when they will see tangible returns.
Notably, the WSJ said OpenAI’s financial figures came prior to a series of new computing deals with cloud and chip groups which are anticipated to drive up spending even further. CEO Sam Altman has said financial commitments from the agreements over the next eight years amount to $1.4 trillion.
Anthropic, on the other hand, is attempting to keep costs roughly in line with revenue, the WSJ said, adding that the firm has focused on sales to enterprise clients and steering clear of more expensive offerings like image and video generation.