Quick overview

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Anthropic finalized the details of a funding round, expected to raise over $20 billion, and is scheduled to close this week. The OpenAI competitor, which was first $10 billion, is now on track to raise more than twice that amount at a $350 billion valuation, because of excessive investor interest.

 

In addition to up to $15 billion from strategic investors, Nvidia Corp., Anthropic has secured checks totaling more than $1 billion each from Coatue Management, Singapore’s GIC, and Iconiq Capital in its most recent funding round. along with Microsoft Corp.

The most recent round of funding would almost double Anthropic’s previous valuation and comes only five months after the company raised $13 billion, indicating a flurry of investors’ interest boosted by the artificial intelligence startup’s skyrocketing revenue run rate, which surpassed $9 billion.

Anthropic caused a multibillion-dollar selloff in the software and financial services sectors after a successful week in which it unveiled a new AI model intended to automate enterprise work tasks. Throughout the past 12 months, developers and companies have become more interested in Anthropic’s coding agents, which can produce software with minimal human input.

The company may usher in a new era of AI technology used in the workplace, and investors are betting that Anthropic’s coding expertise will have a similar impact on other economic sectors.