Feb 12 (Reuters) - Anthropic projects its revenue could

reach as high as $34.5 billion in 2027, technology news website

The Information reported on Wednesday, with the AI startup

racing to catch up with Microsoft ( MSFT )-backed OpenAI.

In a base case scenario, Anthropic said revenue would reach

$12 billion in 2027, up from $2.2 billion in 2025, the report

said.

The company told investors it expects to burn $3 billion

this year, substantially less than last year, when it burned

$5.6 billion, The Information said, adding that Anthropic's

management expects the company to stop burning cash in 2027.

Anthropic did not immediately respond to a Reuters request

for comment.

The AI startup sells access to its models directly and

through third-party cloud services including Amazon Web

Services. The large language models development requires

expensive computing, as well as top talent.

Reuters reported in January that Anthropic is nearing a deal

to raise $2 billion at a price that values the company at $60

billion, just months after its $4 billion funding from Amazon ( AMZN )

.

OpenAI triggered an AI arms race after it launched ChatGPT

in November 2022. With outsized funding rounds by companies such

as Anthropic and xAI, AI startups have accounted for nearly half

of the venture capital dollar raised in the U.S. last year,

according to PitchBook data.