An AI company executive now bets on fast compounding growth, not steady steps
He once asked what year $250 million would become $1 billion, and now calls that linear thinking.
Invest Like the Best with Patrick O'Shaughnessy · Is Anthropic the Fastest Growing Company Ever?When he joined the artificial intelligence company as a senior executive, it had about $250 million in run rate revenue, or current sales projected out over a year, with a goal of reaching $1 billion.
When the interviewer asked, "Did you personally believe that it was possible?", he answered by recalling what he had said at the time.
He said, "Great, in what year?" He said that reply was "linear thinking."
He says his thinking has since shifted from "linear and incremental" toward "leaning into this exponential." He says he has come to believe in its potential. He calls the pattern "model led growth," meaning jumps in the capability of the models supported by products and the sales and distribution team.
He says the business has grown in a way that "is just different than how other businesses have evolved."
Questions people ask
What does run rate revenue mean?
Run rate takes what a company is selling right now and stretches it over a year. If a business sells $250 million in one quarter, its run rate is $1 billion, even if it has not actually collected that much yet.
What is the difference between linear and exponential growth?
Linear growth adds about the same amount each period, like climbing stairs. Exponential growth multiplies, like doubling, so the gains get much larger over time and are harder to picture in advance.