Bloomberg reports that Anthropic is in the final stages of raising $20 billion in new funding at a valuation of $350 billion, with investor demand pushing the company to raise twice the amount it planned to raise. The company raised $13 billion in equity funding just five months ago, but with fierce competition among Frontier Labs and ongoing computing costs, it wants to do so as soon as possible.
Companies expected to participate in the round include Altimeter Capital Management, Sequoia Capital, Lightspeed Venture Partners, Menlo Ventures, Coatue Management, Iconiq Capital and Singapore’s sovereign wealth fund, but the bulk of the funding is said to come from the company’s strategic partners Nvidia and Microsoft.
Anthropic builds on recent successes, particularly the rollout of Coding Agents, which software engineers rave about for improved coding productivity. Last week, the publicly traded data company’s stock price fluctuated as investors worried about AI’s ability to disrupt businesses after the company unveiled a new model focused on legal and business research.
Anthropic rival OpenAI is reportedly assembling a new $100 billion funding round, and both companies are believed to be preparing IPOs ahead of a summer blockbuster market, while xAI, recently acquired by SpaceX, is also leveraging public equity as part of the rocket maker’s IPO.
