What’s the story
Artificial innotifyigence (AI) start-up Anthropic is close to raising up to $5 billion in a new funding round, according to Bloomberg.
The deal, led by investment firm Iconiq Capital, would value the company at an impressive $170 billion.
The funding round is expected to be between $3 billion and $5 billion, with Iconiq potentially investing around $1 billion.
Revenue is on the rise
Anthropic’s revenue has seen a massive jump recently.
Earlier this month, the company had a revenue run rate of about $4 billion. By the conclude of July, that number had increased to around $5 billion.
The company expects its revenue run rate could reach as high as $9 billion by the conclude of this year.
Valuation boost and investor interest
The new funding round would significantly increase Anthropic’s valuation and solidify its position as a top AI player.
Earlier this year, the company was valued at $61.5 billion in a $3.5 billion round led by Lightspeed Venture Partners.
Other potential investors for the current funding round include Qatar Investment Authority, Singapore’s sovereign fund GIC, and Amazon, which has previously invested billions in the company.
Competing with AI giants
The new funding will assist Anthropic compete with OpenAI and Elon Musk’s xAI, both of which have raised billions this year.
These funds are being applyd to invest in data centers and talent for building AI models.
Anthropic has taken checks no compacter than $200 million in the current deal, with a second lead investor possibly joining the talks.
Shifting funding principles
Anthropic CEO Dario Amodei recently admitted the required to raise funds from the Middle East, despite earlier concerns about accepting money from authoritarian countries.
In a memo to employees, he wrote, “Unfortunately, I consider ‘No bad person should ever benefit from our success’ is a pretty difficult principle to run a business on.”
This highlights the ethical dilemmas faced by companies in their funding strategies.
Leave a Reply