Clio’s $500M milestone arrives just as Anthropic ups the ante

# Clio's $500M milestone arrives just as Anthropic ups the ante | TechCrunch Source: [https://techcrunch.com/2026/05/13/clios-500m-milestone-arrives-just-as-anthropic-ups-the-ante/](https://techcrunch.com/2026/05/13/clios-500m-milestone-arrives-just-as-anthropic-ups-the-ante/) While AI is now being applied to everything from healthcare to customer support, no single use case has been nearly as popular or lucrative as code writing\. Jack Newton, co\-founder and CEO of Clio, a Canadian law firm management software company, is convinced that legal tech is poised to be the next big winner of the LLMs era\. That’s a self\-interested claim — 18\-year\-old Clio is a legal tech company — but the numbers are hard to dismiss\. Clio saw its revenue growth accelerate sharply after integrating AI into its[offering in 2023](https://techcrunch.com/2024/07/23/clio-raises-900m-at-a-3b-valuation-plans-to-double-down-on-ai-and-fintech/)\. The company surpassed $200 million in annual recurring revenue \(ARR\) in mid\-2024, doubled that figure by late last year, and just announced that its ARR reached $500 million\. “LLMs are so excellent for coding because all the existing code in the world is a huge repository to train on,” Newton said\. “The analogy to legal is really clear\.” Law firms hold massive corpuses of contracts and agreements, providing a rich basis of text\-based data for AI models to learn from\. “Tech companies and lawyers alike are recognizing what a huge amount of upside there is for legal with LLMs,” Newton said\. Clio isn’t the only legal tech company seeing a massive revenue surge driven by AI\. Four\-year\-old Harvey, which offers LLM AI for law firms, hit ARR of $190 million by the end of 2025, co\-founder and CEO Winston Weinberg shared[on LinkedIn](https://www.linkedin.com/posts/winston-weinberg_2025-was-a-big-year-for-harvey-a-few-highlights-activity-7415020362184187905-Cnia/)\.Harvey’s main rival, Legora, announced last month that it reached[$100 million in ARR](https://legora.com/newsroom/legal-teams-adoption-of-ai-propels-legora-past-100-million-in-annual-recurring-revenue)a mere 18 months after launching its platform\. Althoughthe legal tech community's definition of ARR has been[under scrutiny recently](https://legaltech.ca/2026/04/21/what-counts-as-arr-in-legal-ai/), the opportunity to apply AI to law makes clear sense,given that LLMs can automate the field’s most time\-consuming tasks, such as document review and drafting\. Legal tech companies aren’t the only ones recognizing how valuable AI could be for lawyers\. Earlier this week, Anthropic announced a[suite of new](https://techcrunch.com/2026/05/12/the-ai-legal-services-industry-is-heating-up-anthropic-is-getting-in-on-the-action/)legal\-specific features, expanding Claude for Legal \-\- the law\-focused plug\-in whose[debut](https://legaltechnology.com/2026/02/03/anthropic-unveils-claude-legal-plugin-and-causes-market-meltdown/)earlier this year sent legal tech stocks[tumbling](https://legaltechnology.com/2026/02/03/anthropic-unveils-claude-legal-plugin-and-causes-market-meltdown/)\. Both Harvey and Legora rely on Claude as a core model among others, which makes the dynamic an uncomfortable one: A key supplier is now also a competitor\. For Newton, these are all signs of the vast potential of the legal AI market\. He has reason to be optimistic\. The Canada\-based Clio was valued at[$5 billion](https://www.reuters.com/legal/legalindustry/legal-ai-technology-firm-clio-valued-5-billion-latest-funding-round-2025-11-10/)when it raised a $500 million Series G last November\. The company provides law firms with time\-tracking, invoicing, and payment tools\. Its[$1 billion](https://techcrunch.com/2025/06/30/legal-software-company-clio-drops-1b-on-law-data-giant-vlex/)acquisition of data intelligence platform vLex last year now allows lawyers to use Clio’s AI for research, as well\. *When you purchase through links in our articles,[we may earn a small commission](https://techcrunch.com/techcrunch-affiliate-monetization-standards/)\. This doesn’t affect our editorial independence\.* Marina Temkin is a venture capital and startups reporter at TechCrunch\. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal\. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation\. You can contact or verify outreach from Marina by emailing[marina\.temkin@techcrunch\.com](mailto:[email protected])or via encrypted message at \+1 347\-683\-3909 on Signal\. [View Bio](https://techcrunch.com/author/marina-temkin/)