Anthropic turned profitable in the second quarter of 2026, reporting approximately $11.5 billion to $11.6 billion in revenue and marking its first operating profit. Its annualized recurring revenue rose from roughly $9 billion at the end of 2025 to $47 billion by mid-May 2026, while OpenAI’s ARR increased from an estimated $20 billion to $25 billion to about $40 billion to $41 billion over a similar period. The two companies are now described as having combined ARR exceeding $115 billion, although the reported company-level figures differ from that total. OpenAI reported Q2 revenue of $6.7 billion, up from $5.7 billion in the first quarter, while its operating loss was previously described as widening. Anthropic’s Claude Code and OpenAI’s GPT-5.6 series are driving enterprise and API adoption, with consumer subscriptions also contributing. Anthropic’s ARR is projected to exceed $65 billion by the end of July, with some estimates reaching $74 billion to $75 billion. Both companies are preparing for potential IPOs later in 2026; Anthropic raised $65 billion in a May Series H round at a $965 billion post-money valuation, while OpenAI raised $122 billion earlier in the year at an $852 billion valuation. Dylan Patel, founder of SemiAnalysis, has indicated that OpenAI might reach profitability in the third quarter. Investors will monitor further funding or partnerships, the labs’ profitability trajectories, broader AI-market conditions, and strategic moves by Amazon and Google.