Anthropic is nearing a deal to raise up to US$10 billion in new funding, according to sources familiar with the matter.

The US-based AI startup, founded in 2021 by former OpenAI staff, is in talks with investors including Iconiq Capital, TPG, Lightspeed Venture Partners, Spark Capital, and Menlo Ventures.

Qatar Investment Authority and Singapore’s GIC have also been approached.

The round could be one of the largest capital raises for an AI startup to date.

Bloomberg previously reported Anthropic was seeking up to US$5 billion at a US$170 billion valuation, but strong investor demand has pushed the figure higher.

Anthropic declined to comment on the ongoing negotiations.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ AI funding rounds are escalating rapidly as competition intensifies

Anthropic’s potential $10 billion round represents more than just company growth. It reflects an entire industry where funding expectations are being repeatedly exceeded.

The original discussions were for $5 billion, but strong investor demand pushed the target to $10 billion, demonstrating how competitive pressure drives funding inflation in AI1.

This trend extends beyond Anthropic. Global venture capital investment in AI startups jumped 80% from $55.6 billion in 2023 to over $100 billion in 20242.

AI startups now command significantly larger rounds across all stages, with median Series A funding reaching $16 million compared to just $7 million for non-AI companies3.

The escalation suggests investors are prioritizing market position over traditional valuation metrics, fearing they’ll miss out on the next dominant AI platform.

2️⃣ Massive funding doesn’t guarantee user adoption in competitive AI markets

Despite raising substantial capital, Anthropic’s user engagement lags significantly behind OpenAI, highlighting a disconnect between investor confidence and market traction.

Recent Anthropic developments