Anthropic in talks for a new funding round at a $170 billion valuation

Media reports indicate that Anthropic is in talks for a $3 billion to $5 billion funding round, led by Iconiq Capital, which would value the AI startup at $170 billion.

Anthropic, a competitor to OpenAI, has raised billions of dollars, with its valuation rapidly climbing, reflecting investors' eagerness to invest in the fastest-growing AI companies. In March, Anthropic raised $3.5 billion in a funding round led by Lightspeed Venture Partners, valuing the company at $61.5 billion.

Late last week, the Financial Times reported that Anthropic was nearing a valuation of nearly $150 billion after talks with several Middle Eastern investors.

A leaked memo obtained by Wired magazine reveals that Anthropic CEO Dario Amodei has reversed course on Middle Eastern funding. He wrote that without the help of Gulf sovereign wealth funds, "staying at the forefront" of AI development will be "extremely difficult," despite his previous warnings about the national security risks of empowering authoritarian regimes with "soft power."

As previously reported, Anthropic has refused to accept funding from Saudi Arabia when soliciting new investors.

Competitors are also turning to the Middle East. OpenAI, with $30 billion remaining on its $40 billion fundraising plan, is partnering with the UAE-based company G42 to build a large data center in Abu Dhabi. OpenAI's latest funding round valued the company at approximately $300 billion.