Anthropic’s Ambitious $5 Billion Bid to Challenge OpenAI and Reshape AI Landscape

Berlin-based research startup Anthropic is reportedly seeking to raise up to $5 billion in funding over the next two years to compete with OpenAI and expand into over a dozen major industries. Founded in 2020 by former OpenAI researchers, Anthropic plans to develop a “frontier model” called “Claude-Next,” which aims to be ten times more capable than today’s most powerful AI. The company estimates that building this model will require a billion dollars in spending over the next 18 months.

Anthropic’s model focuses on “constitutional AI,” which aligns AI with human intentions using guiding principles. The startup envisions applications in virtual assistants, legal analysis, medical records analysis, customer service, coding, content generation, chatbots, HR tasks, therapy, coaching, education, and more. The company’s pitch deck also emphasizes its focus on responsible AI and reducing harmful outputs. Anthropic has already released its chatbot, Claude, commercially and aims to position itself as a key player in the AI landscape. Notable investors in Anthropic include Google, Alameda Research Ventures, James McClave, Dustin Moskovitz, Eric Schmidt, and Jaan Tallinn.