Anthropic tells investors before IPO that quarterly revenue grew nearly 50% to $16.8 billion

Anthropic told investors before its IPO that third-quarter revenue grew 50% to $16.8 billion and was profitable for the second consecutive quarter on an adjusted basis. Revenue is higher than the $11.5 billion in the three months through June, but the growth rate is lower than the more than doubling of revenue from about $4.8 billion between the first and second quarters of this year. The company said cash flow was positive in the third quarter, with $1.70 in revenue for every $1 spent on compute, and an operating margin of 11%. Nearly one-third of the draft S-1 circulated to a small group of investors last month consisted of risk factors, including that AI models may exhibit unpredictable and malicious behavior, with Anthropic warning that its technology could pose an existential risk to humanity. The company plans to go public in November, and its listing is widely expected to be the highest-valued IPO in history.