Iconiq to Lead $5bn Anthropic AI Funding, Valuing it at $170bn
Iconiq Capital is poised to lead a $5 billion funding round for artificial intelligence start-up Anthropic, a deal that would value the company at $170 billion. This proposed valuation marks a nearly threefold increase from its $61.5 billion valuation just four months ago.
According to sources with direct knowledge of the matter, the San Francisco-based investment group has submitted its terms to Anthropic. If finalized, the investment would elevate the four-year-old start-up to one of the world’s most valuable private technology companies. Iconiq Capital is renowned for managing the wealth of high-profile tech billionaires, including Facebook co-founders Mark Zuckerberg and Dustin Moskovitz, LinkedIn co-founder Reid Hoffman, and Twitter founder Jack Dorsey. Established in 2011 as a wealth adviser, the group now manages over $80 billion.
Anthropic’s rapid ascent is underscored by its financial performance, with its annual recurring revenue quadrupling this year to approximately $4 billion. The company previously closed a $3.5 billion funding round in March. In recent weeks, Anthropic has engaged in discussions with various investors regarding fresh capital, including the United Arab Emirates state investment fund MGX and existing partner Amazon.
This significant investment comes amidst an intense global battle for funding among AI companies, which are increasingly looking beyond traditional Silicon Valley sources to sovereign wealth funds for capital. The development and training of cutting-edge large language models require colossal investment, driving aggressive competition between AI start-ups and established Big Tech firms.
A $170 billion valuation would position Anthropic among the elite private tech companies worldwide, though it would still trail rival OpenAI, valued at $300 billion, and Elon Musk’s SpaceX, which stands at $400 billion.
Anthropic was founded in 2021 by senior staff who departed OpenAI following disagreements with co-founder Sam Altman over the company’s strategic direction. Dustin Moskovitz, an Iconiq client, was an early backer of Anthropic. Mark Zuckerberg, another major Iconiq client, is actively reorienting Meta to enhance its competitiveness against AI rivals like Anthropic and OpenAI.
The company has consistently emphasized its commitment to developing AI tools safely, responsibly, and ethically, and had previously resisted raising money directly from the Middle East. However, Anthropic CEO Dario Amodei recently informed staff of a change in approach, stating the company would begin accepting investments from the region. While acknowledging the potential for such moves to “enrich dictators,” Amodei added, “Unfortunately, I think ‘no bad person should ever benefit from our success’ is a pretty difficult principle to run a business on.”
Both Iconiq Capital and Anthropic declined to comment on the prospective funding round.