AI start-up Anthropic is raising $3-5B at $170B valuation
What's the story
Anthropic, a leading artificial intelligence (AI) start-up, is on the verge of closing a new funding round that could value the company at an impressive $170 billion. Investment firm Iconiq Capital is leading this round, which could raise between $3 billion and $5 billion. The talks are still in progress and may include a second lead investor.
Investor interest
Funding round attracts interest from major investors
The funding round has drawn interest from several high-profile investors. These include the Qatar Investment Authority and GIC, Singapore's sovereign wealth fund. Amazon, which has previously invested in Anthropic, is also said to be interested in this funding round. Iconiq is reportedly looking to invest around $1 billion in this deal.
Financial growth
Anthropic's sales surge amid funding talks
As the latest funding talks progress, Anthropic's sales have skyrocketed. The company was generating around $4 billion in annual recurring revenue earlier this month. By the end of July, that figure had grown to about $5 billion. The firm expects its recurring revenue to hit $9 billion by the end of this year.
Market position
New financing marks significant leap in valuation
The new financing would be a major leap in valuation for Anthropic and solidify its position as one of the top AI developers globally. Earlier this year, the company was valued at $61.5 billion in a $3.5 billion round led by Lightspeed Venture Partners. The new funding round is also being participated by Lightspeed, Menlo Ventures, and Alkeon Capital Management.
Strategic approach
Minimum investment threshold and competition in AI landscape
Anthropic is accepting investments of no less than $200 million in this deal. The firm, founded in 2021 by former OpenAI employees, has positioned itself as a trustworthy and safety-conscious AI firm. The new funding will help Anthropic compete with other big players like OpenAI and Elon Musk's xAI, both of which have raised billions this year for their data centers and talent acquisition for building AI models.