Jeff Bezos-Backed Anthropic Set To Become One Of The Top 5 US Startups As It Reportedly Eyes $60 Billion Valuation With $2 Billion Funding Round

Anthropic, the AI startup behind “Claude” backed by Jeff Bezos, is reportedly in advanced discussions to secure $2 billion in funding. This deal could elevate its valuation to $60 billion, positioning it among the top five most valuable U.S. startups.

What Happened: The funding round is reportedly led by Lightspeed Venture Partners, according to sources familiar with the matter. This valuation includes the anticipated $2 billion from the current fundraising efforts. Anthropic’s valuation last year was $18 billion, led by Menlo Ventures, The Wall Street Journal reported on Wednesday.

The AI sector has seen a surge in investment activities, with companies like OpenAI and Elon Musk's xAI raising substantial funds. Investors are optimistic about generative AI’s potential, despite the financial losses many AI startups face due to high operational costs and fierce competition.

Amazon.com Inc. AMZN has been a significant backer of Anthropic, committing $4 billion in November. This investment, structured as a convertible note, will convert to equity at the current valuation. Anthropic’s annualized revenue has reached approximately $875 million, primarily from business sales.

Why It Matters: Anthropic’s latest fundraising efforts come on the heels of its strategic partnership with Amazon Web Services and Palantir Technologies Inc. PLTR. This collaboration aims to provide its Claude A.I. models to U.S. defense and intelligence agencies. The partnership underscores a growing trend where AI companies are increasingly aligning with government sectors to leverage their technologies for national security purposes.

This move positions Anthropic as a more safety-conscious alternative to competitors like Microsoft Corp MSFT-backed OpenAI.

Meanwhile, OpenAI CEO Sam Altman revealed that the company is operating at a loss on its $200-per-month ChatGPT Pro subscription plan. While the plan was introduced to generate revenue, it hasn't met profit expectations due to higher-than-anticipated usage.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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