Anthropic Expects an Operating Profit This Quarter, FT Says

Anthropic PBC told a small group of shareholders it will report an adjusted operating profit this quarter, the Financial Times reported on Sunday, marking a second consecutive period of profitability as the company prepares to go public.

The metric strips out certain exceptional or one-time costs. The artificial intelligence company’s gross margins exceed 80% before factoring in revenue-sharing payments to partners such as Amazon.com Inc. and training costs for AI models, people familiar with the matter told the paper.

The report comes as the Claude AI maker prepares for an initial public offering with the aim to match or exceed SpaceX’s record $86.3 billion offering earlier this year. The company chose the Nasdaq as its listing venue, a person familiar with the matter told Bloomberg News on Sunday.

Read More: Anthropic Expects to Match or Top SpaceX’s Record IPO Size

AI companies have rushed to lock in additional financing via share sales, debt sales and public listings as they contend with massive capital expenditure needs stemming from an insatiable demand for computing power. Anthropic was set to finalize a $15 billion revolving credit facility this month, Bloomberg News has reported.

While the industry has spurred a stock rally, growing concerns about potentially existential threats posed by rapidly improving AI technology have led key industry players to call for safeguards. Anthropic Chief Executive Officer Dario Amodei was joined by OpenAI Inc. CEO Sam Altman and SpaceX chief Elon Musk on Saturday in calling for a slower pace of AI development, citing the escalating risks.

Read More: Amodei, Altman, Musk Call for Slowing AI Model Development

Altman told Fortune in an interview that his company won’t go public this year, citing safety concerns.

Anthropic is on track to generate annualized revenue of more than $65 billion based on its current performance, up more than sevenfold from its pace at the end of last year, Bloomberg News previously reported.