Anthropic valuation hits $965bn, overtakes OpenAI in AI race

AI startup Anthropic has surged to the top of global private market valuations, reaching an estimated $965 billion and surpassing rival OpenAI, according to reports.

The development marks a major shift in the rapidly evolving artificial intelligence sector, where competition among leading model developers continues to intensify.

According to Al Jazeera, Anthropic recently secured $65 billion in a new private funding round led by Altimeter Capital, Greenoaks, Dragoneer Investment Group and Sequoia Capital, significantly boosting its valuation.

The company’s latest valuation now places it ahead of OpenAI, which was valued at around $852 billion in March.

Anthropic Chief Financial Officer Krishna Rao said the investment would help scale operations and accelerate research efforts.

“This investment will help us meet growing demand, stay at the forefront of research, and bring Claude into more work environments,” he said.

Altimeter Capital CEO Brad Gerstner said widespread adoption of Anthropic’s Claude model across major enterprises reflects the company’s strengthening position in the AI ecosystem.

Founded in 2021 by former OpenAI researchers, Anthropic has quickly emerged as one of the leading players in generative AI. Its chatbot Claude, launched in 2023, is now among the most widely used AI models globally, with millions of new users joining the platform.

Despite rapid growth, the company has also faced regulatory and policy scrutiny, including concerns raised over its approach to military applications in certain jurisdictions.

Anthropic also recently unveiled a new version of its model, Claude Opus 4.8, which the company described as a “modest but noticeable improvement” over previous iterations.

Industry analysts say the surge in valuation underscores investor enthusiasm for AI, with some warning of potential overheating in the sector.

Analysts also suggest that Anthropic, OpenAI and other major AI players could be among the largest public listings in history if they move toward IPOs in the coming years.