In a move that mirrors Apple Inc.’s AAPL iFund initiative, Anthropic and Menlo Ventures have launched a $100 million fund to support early-stage AI startups.
What Happened: Anthropic, an AI startup backed by Amazon.com Inc.‘s founder Jeff Bezos, and Menlo Ventures, a major investor, have initiated the Anthology Fund, CNBC reported on Wednesday.
The fund will provide financial backing to early-stage startups and offer them access to Anthropic’s AI technology. Menlo Ventures will contribute the capital for the investments, while Anthropic will provide founders with $25,000 in credits for using its large language models.
The Anthology Fund’s structure is reminiscent of the iFund, a collaboration between Apple and venture firm Kleiner Perkins, which was established in 2008 to support developers on Apple’s mobile platforms.
Matt Murphy, formerly a partner at Kleiner Perkins and currently a partner at Menlo Ventures, credited the iFund as the inspiration behind this launch.
“That was wildly successful — it really gave Apple a lens into a whole set of early developers, and what they need to be more attentive to," Murphy said.
OpenAI operates the OpenAI Startup Fund, dedicating $175 million to support AI companies aiming for significant positive global impact, as stated on its website. This positions Anthropic in direct competition with OpenAI, the developer behind ChatGPT.
Anthropic’s co-founder, Daniela Amodei, highlighted that the goal is to create a feedback loop to improve their products by partnering with developers. Unlike other funds, Anthropic will not take equity stakes in the startups but will offer coaching and resources.
Why It Matters: The launch of the Anthology Fund comes amid increasing scrutiny and competition in the AI industry. Recently, Anthropic, along with Apple, and Nvidia Corp., faced accusations of using YouTube videos to train AI models without creators’ consent.
Moreover, the AI sector is witnessing fierce competition from Chinese startups. Four Chinese AI companies, including Zhipu AI and Moonshot AI, have achieved unicorn status, with valuations exceeding $1 billion. These firms are rapidly growing and are backed by major investors such as Alibaba Group Holdings, Tencent, and Xiaomi. This surge in competition poses a significant challenge to U.S.-based AI.
Additionally, OpenAI recently backed Anysphere in a $400 million funding round. Anysphere, known for its AI code editor Cursor, has seen a significant increase in valuation, reflecting the growing investor interest in AI startups.
Meanwhile, Microsoft Corp MSFT is also heavily investing in AI. The tech giant recently funded Touchcast Inc., a startup focused on enhancing AI deployment efficiency. This investment underscores the competitive landscape and the race to advance AI technologies.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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