Anthropic and OpenAI are posting sharp revenue growth as demand from retail and institutional users lifts spending on artificial intelligence products, according to Bloomberg. Anthropic's revenue reportedly rose 14-fold in the second quarter to $11.5 billion from $787 million a year earlier, after generating $4.7 billion in the first quarter. The company has benefited from new model launches and a focus on corporate customers, a strategy that has supported premium pricing and fed expectations around a potential IPO valuation of $2 trillion. OpenAI has also returned to growth, with Bloomberg reporting annualized revenue of $40 billion, driven by coding tools, advertising, and a consumer business helped by price cuts, while the company plans an IPO later this year at a $1 trillion valuation. The expansion comes with heavier spending on GPUs (graphics processing units), servers and memory, as large model developers commit vast sums to computing capacity. The report says Anthropic recently signed a $9 billion deal with Riot Platforms and is paying SpaceX more than $1 billion a month for compute. Competition is also intensifying from Chinese groups including Alibaba, Moonshot and DeepSeek, whose lower-cost models are gaining scale and showing strong performance in rankings. Alibaba's open-weight models have surpassed 3 billion downloads, and the pricing gap is stark: DeepSeek V4 Flash costs about $0.18 per 1 million output tokens versus $25 for Claude Opus 5, $15 for Gemini 3.1 Pro and $30 for GPT 5.6. That cost advantage may help Chinese models win more enterprise adoption.