"Anthropic CEO Dario Amodei said the AI company had planned for 10x growth, but instead, its revenue and usage grew 80-fold in the first quarter on an annualized basis, a surge he called "just crazy" and "too hard to handle." The company is growing so fast that its infrastructure has struggled to keep up, forcing it into an unlikely partnership with an industry rival: Elon Musk."
""That is the reason we have had difficulties with compute," Amodei said during Anthropic's developer conference in San Francisco Wednesday, CNBC reported. Anthropic's annualized revenue has climbed to $30 billion, a three-fold increase compared to last year. Much of this increase has been fueled by a wave of corporate customers including Uber and Netflix which are increasingly using Claude Code."
"Customers prefer Claude Code in some cases over competitors like Cursor because of its agentic abilities. Companies have also leveraged Claude's API to embed the large language model into everything from customer service platforms to task automation. "Software engineers are the ones who are fastest to adopt new technology," Amodei said at the developer's conference. "It's a foreshadowing of how things are going to work across the economy, and how the economy is going to be transformed by AI.""
"Yet, in recent months, some Claude Code users have complained about increasingly strict usage limits that have hurt their experience and the model's performance. Anthropic admitted in a postmortem from late April that three bugs had affected Claude Code since March 4. The company's internal tests hadn't caught them, which is what led to several weeks of degraded performance. Yet, when users first flagged the issues in early March, the company said it could not reproduce them and didn't make an effort to fix the problem."
Anthropic planned for 10x growth but saw revenue and usage rise 80-fold annualized in the first quarter. Annualized revenue reached about $30 billion, up three-fold from the prior year, driven by corporate customers such as Uber and Netflix adopting Claude Code. Claude Code is favored in some cases for agentic capabilities, and companies use the Claude API to embed the model into customer service and task automation. Rapid growth strained infrastructure and compute capacity, leading to an unusual partnership with Elon Musk. Some users reported stricter usage limits and degraded performance. Anthropic later attributed issues to three bugs that affected Claude Code since March 4, with internal tests failing to catch them and earlier user reports not being reproducible.
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