AI startup Anthropic is reportedly nearing a $2 billion funding round, which would push its valuation to an impressive $60 billion. This follows a $4 billion funding round from Amazon earlier this year, solidifying Anthropic’s position as a major rival to OpenAI in the foundation model space.

The latest funding round, led by Lightspeed Venture Partners, would bring Anthropic’s total funding to $6 billion, significantly boosting its valuation from $18 billion during a previous round led by Menlo Ventures.

Last year, Amazon increased its commitment to Anthropic with an $8 billion investment, including $4 billion in convertible notes that will convert to equity in the current funding round. Alphabet also invested $2 billion in 2023, underscoring the rising interest among tech giants in generative AI and foundation models.

Founded by siblings and former OpenAI executives Dario and Daniela Amodei, Anthropic specializes in developing large language models requiring advanced computational capabilities and highly skilled talent. The company has reported an annualized revenue of approximately $875 million, generated through direct model sales and partnerships with cloud service providers like Amazon Web Services.

Anthropic’s rapid growth reflects the broader AI industry boom ignited by OpenAI’s release of ChatGPT in November 2022. OpenAI, backed by Microsoft, has achieved a valuation of $157 billion following a $6.6 billion funding round in October 2024.

Venture capital investments in AI startups have surged, with Anthropic and xAI accounting for nearly half of all venture capital raised in the U.S. last year, according to PitchBook data.

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