Anthropic Seeks to Overtake OpenAI, Valuation Potentially Exceeding $900 Billion

Anthropic PBC on Track to Close $30 Billion Funding Round, Valuation to Exceed $900 Billion

Anthropic PBC, a leading artificial intelligence startup, is poised to close its latest round of funding, which may exceed $30 billion at a valuation above $900 billion, as early as next week. According to sources familiar with the matter, the financing round will be led by a consortium of top investors, including Sequoia Capital, Dragoneer Investment Group, Altimeter Capital, and Greenoaks Capital Partners.

Each of these firms plans to invest approximately $2 billion, with a number of other existing Anthropic investors also participating in the round. These include Peter Thiel's Founders Fund and General Catalyst. The total investments in the round are currently tracking above the $30 billion target, with the commitments still being finalized and the terms subject to change.

The rapid assembly of this large round in just a matter of weeks is a testament to the strong investor demand for Anthropic's AI technology, particularly its Claude maker. In late April, Anthropic had weighed the option of pursuing new financing at a valuation of over $900 billion after receiving several inbound proposals. The company then initiated discussions earlier this month.

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Anthropic, Founders Fund, Sequoia, and General Catalyst have declined to comment on the matter, while Dragoneer, Altimeter, and Greenoaks did not respond to a request for comment.

Anthropic's Rise to Prominence

Founded in 2021 by a group of former OpenAI employees, Anthropic has emerged as a leader in the AI sector. The company has developed a range of AI tools aimed at transforming the way businesses handle tasks such as coding and cybersecurity. Both Anthropic and OpenAI are expected to go public as soon as this fall.

Financial Performance

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Anthropic is poised to report $10.9 billion in revenue for the second quarter, more than doubling from the prior three-month period as demand surges for its AI software. This represents the company's first profitable quarter. Additionally, Anthropic expects its annualized run-rate revenue to surpass $50 billion by the end of next month.

The company's run rate, which projects full-year revenue based on sales from a shorter period, was $4 billion in July of last year. At a recent conference, Anthropic Chief Executive Officer Dario Amodei stated that the firm had experienced "80x growth" in annualized revenue and usage in the first quarter of this year.

Computing Capacity and Supply Chain Financing

To support its growing services, Anthropic has secured significant computing capacity deals with various partners. The company has struck a nearly $45 billion agreement with Elon Musk's SpaceX and a $1.8 billion agreement with Akamai Technologies Inc. to expand its computing capacity. It has also partnered with Alphabet Inc.'s Google for chips and cloud services.

In addition, Anthropic is turning to some of its suppliers for additional financing. Google recently committed to invest $10 billion in the startup at a $350 billion valuation, with plans to invest up to $30 billion more if certain performance targets are met. Amazon.com Inc. has also invested $5 billion in Anthropic at a $350 billion valuation, with plans to inject $20 billion more over time.

OpenAI's Valuation and Public Listing

OpenAI, a rival AI startup, was most recently valued at $852 billion in a funding round completed in March. The company is expected to confidentially file draft paperwork to go public in the coming days.