Updated
Updated · The New York Times · Sep 3
At Least 95 Investors Back Anthropic and OpenAI as AI Race Rewrites VC Rules
Updated
Updated · The New York Times · Sep 3

At Least 95 Investors Back Anthropic and OpenAI as AI Race Rewrites VC Rules

3 articles · Updated · The New York Times · Sep 3

Summary

  • At least 95 investors have put money into both Anthropic and OpenAI ahead of their expected IPOs, an unusually broad overlap for two direct AI rivals.
  • Sequoia Capital, Founders Fund, Coatue Management and Altimeter are among the firms backing both, reflecting a rush to secure exposure to whichever company becomes the next big winner.
  • That dual-backing strategy breaks with a long-standing venture capital norm of choosing one startup per emerging category and avoiding direct competitor conflicts.
  • The shift shows how the AI boom has concentrated Silicon Valley's bets around a handful of companies that investors see as potential $2 trillion businesses.

Insights

How will Silicon Valley investors manage deep conflicts of interest as both OpenAI and Anthropic race toward trillion-dollar IPOs?
Can OpenAI and Anthropic sustain trillion-dollar public valuations while burning over a billion dollars monthly on AI compute costs?
Will the unique safety-focused governance of these AI giants survive the relentless profit demands of public market shareholders?