Google Invests Another $1B in Anthropic Amid Runaway AI Valuations

• Google is set to invest a further $1 billion in Anthropic.
• With a $60 billion valuation, Anthropic is the second-most valuable AI startup after OpenAI.
• Venture funding in AI startups has exploded in the last year, driving valuations to new heights.

Over the past year, valuations for AI labs have ballooned to astronomical figures as the most valuable startups have pulled in multi-billion dollar funding rounds.

In the latest instance of the trend, Google is reportedly preparing to invest another $1 billion in Anthropic, with reports suggesting the Claude developer’s next funding round could value it at over $60 billion.

Anthropic Secures Additional Billions

When Anthropic last raised capital in March 2024, the company was valued at $18.4 billion. Now, less than a year later, its next funding round will reportedly more than triple that valuation to $60 billion.

The $60 billion figure was recently disclosed by the Wall Street Journal, which reported  that Lightspeed Venture Partners will lead a major funding round.

The deal with Google forms a separate investment, the Financial Times reported  on Wednesday, Jan. 22.

Google has already committed $2 billion to Anthropic. Meanwhile, in November, Amazon doubled its investment in the AI startup to $4 billion.

AI Startup Valuations Balloon

Anthropic’s latest valuation cements its position as the second most valuable AI startup after OpenAI. In October, OpenAI closed a $6.6 billion funding round at a $157 billion valuation.

Both companies managed to at least double their valuation between rounds, with OpenAI pulling off the feat repeatedly.

Growth has been even more aggressive for the new kid on the block—Elon Musk’s xAI.

From $18 billion in May 2024, xAI’s valuation jumped to $50 billion in December, following a $6 billion Series C.

Economic Impact

Runaway venture funding suggests the AI sector is still in its early growth phase. With Big Tech players and major corporate technology investors fueling development, securing market share is currently being prioritized over profits.

Nonetheless, the explosion in AI startup valuations underscores the industry’s rising economic influence.

Alongside massive investments into a handful of big-name startups, even more money is being directed toward AI infrastructure.

For instance, on Tuesday, Jan. 21, Donald Trump announced a new joint venture between OpenAI, Oracle, and Softbank that will invest $500 billion to build U.S. data centers over the next four years.