AI start-up Anthropic Eyes $2 Billion, $60 Billion Valuation in Latest Funding Round: Report

AI start-up Anthropic is on the edge of securing an additional $2 billion in funding, propelling its valuation to $60 billion, according to sources. This development follows its $4 billion funding round led by Amazon earlier this year.

Lightspeed Venture Partners is reportedly leading this funding round, as per sources who spoke on condition of privacy due to the private nature of the discussions.

This latest funding, totaling $6 billion, signifies a substantial leap in Anthropic’s valuation, positioning the company as a major competitor to OpenAI in the foundation model space. In a former fundraising round led by Menlo Ventures last year, Anthropic was valued at approximately $18 billion.

Anthropic has declined to comment on the matter. The Wall Street Journal initially reported the news on Tuesday.

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Amazon has been a key investor, doubling its stake in the start-up to $8 billion last year. The e-commerce giant’s recent $4 billion investment in convertible notes is set to convert into equity in this latest funding round.

Anthropic, whose annualized revenue has reached almost $875 million, offers access to its models both directly and through third-party cloud platforms, including Amazon Web Services. Developing large language models demands considerable computing resources and access to top-tier talent.

Founded by former OpenAI executives and siblings Dario and Daniela Amodei, Anthropic has also received a $2 billion investment from Alphabet in 2023. The San Francisco-based company continues to establish itself as a frontrunner in AI innovation.

OpenAI, backed by Microsoft, initiated a significant AI arms race with the launch of ChatGPT in November 2022. The start-up’s rapid growth and product advancements led to a $6.6 billion funding round in October, boosting its valuation to an estimated $157 billion.

AI start-ups, including Anthropic and xAI, have captured nearly half of all venture capital funding in the U.S. last year, according to PitchBook data, highlighting the intense competition and high stakes in the AI sector.