Anthropic, a leading artificial intelligence startup and competitor to OpenAI, is currently in discussions to raise between $3 billion and $5 billion in a new funding round. The round is expected to be led by Iconiq Capital and could value the company at approximately $170 billion. This potential valuation marks a significant increase from Anthropic’s previous $61.5 billion valuation in March, when it closed a $3.5 billion round led by Lightspeed Venture Partners.
The rapid increase in Anthropic’s valuation reflects the growing appetite among investors to secure stakes in some of the fastest-growing companies in the AI sector. Reports suggest that talks have involved investors from the Middle East, a region that has become a notable source of capital for AI ventures.
A leaked internal memo reveals that Anthropic’s CEO, Dario Amodei, has shifted his stance on funding from the Gulf region. While earlier expressing concerns about national security risks and the empowerment of authoritarian regimes, Amodei acknowledged the growing difficulty of staying at the forefront of AI innovation without engaging with sovereign wealth funds from the Middle East. This marks a departure from the company’s previous reluctance to accept investments from certain Gulf states.
This change in position is significant given that Anthropic had reportedly declined funding from Saudi Arabia during its last fundraising efforts. Now, however, the startup appears more open to Middle Eastern investors, aligning with broader industry trends.
Other AI giants are also expanding ties with the Middle East. OpenAI, valued at around $300 billion after its most recent funding round, has partnered with Emirati firm G42 to develop a large data center in Abu Dhabi. OpenAI still aims to raise $40 billion, with $30 billion yet to be secured, highlighting ongoing demand for substantial capital to fuel AI research and development.
Anthropic’s move to secure a large funding round at an elevated valuation underscores the intense competition and rapid evolution in the AI industry, as companies seek both capital and strategic partnerships to maintain their edge in this transformative technology space.
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