Anthropic, the OpenAI rival, is currently in discussions to secure a substantial funding round of $750 million, according to a source familiar with the matter. Menlo Ventures is expected to lead the funding round, which would value Anthropic at an impressive $18.4 billion, nearly quadrupling its valuation from earlier this year.
Anthropic, founded in 2021 by former employees of OpenAI, has already received significant investment from prominent companies including Google, Salesforce, and Zoom. In April and May, the startup raised a combined $750 million in funding, with Google securing a 10% stake in the company. This funding round represented the largest ever for an AI company since Microsoft’s investment in OpenAI back in January.
The recent talks of raising an additional $750 million comes on the heels of Google’s commitment in October to invest up to $2 billion in Anthropic. As part of this agreement, Google provided an initial cash infusion of $500 million, with an additional $1.5 billion to be invested over time. These substantial investments highlight the growing interest and confidence in Anthropic’s potential.
Anthropic has gained recognition for its AI chatbot, Claude 2, which competes with OpenAI’s ChatGPT. Claude 2 is utilized by companies such as Slack, Notion, and Quora, and boasts an impressive ability to summarize up to 75,000 words, equivalent to the length of a book. In contrast, ChatGPT can handle about 3,000 words. This difference in capabilities has positioned Claude 2 as a reliable choice, especially in terms of self-awareness and accuracy in answering questions.
The founding team of Anthropic, comprised of Dario Amodei and Daniela Amodei, formerly held significant positions at OpenAI. Dario Amodei served as the vice president of research, while Daniela Amodei was the vice president of safety and policy. The expertise and experience they bring to Anthropic, along with their team of dedicated individuals, have contributed to the startup’s rapid growth and success.
Daniela Amodei expressed optimism about the market’s potential, stating that the demand for large language models surpasses what the industry is currently able to provide. With ample room for multiple players to thrive, Amodei sees a wide landscape for users to utilize these systems effectively.
Anthropic’s continued pursuit of substantial funding highlights its ambition and potential to challenge the dominance of OpenAI in the AI field. The funding round, led by Menlo Ventures, would catapult Anthropic’s valuation to an impressive $18.4 billion. As the startup further develops its AI models and expands its offerings, it will undoubtedly capture the attention of industry leaders, investors, and technology enthusiasts alike.
