Anthropic doubles funding target to $20 billion

Anthropic has doubled its venture capital funding target from $10 billion to $20 billion, according to a report by the FT. The funding round, which is expected to close soon, will result in a $350 billion valuation for the company, sources told the FT. The decision to double the target from the previous $10 billion figure is reportedly driven by booming investor interest in the company, which develops the Claude AI model and the Claude Code AI tool. This interest comes as the company competes with rivals in the artificial intelligence sector, including OpenAI.

According to the FT, backers in the current funding round are expected to include:

• Sequoia Capital, a venture capital firm that also invests in Anthropic’s rival OpenAI
• Singapore’s sovereign wealth fund, which is a government-owned investment fund
• Coatue, an investment management firm

This new $20 billion funding target represents a significant increase from the company’s previous financing. In September, Anthropic announced a $13 billion raise, which established a valuation of $183 billion for the company. The current round, if completed at the targeted amount, would result in a $350 billion valuation, nearly doubling its previous valuation of $183 billion. The transition from a $13 billion raise in September to a $20 billion target highlights the scale of capital the company is seeking from its backers.

Beyond the immediate capital raise, Anthropic is also preparing for a potential transition to public markets. Late last year, the company reportedly hired lawyers to prepare for an initial public offering (IPO). This potential IPO could occur sometime this year. The hiring of legal counsel late last year serves as a step toward prepping for this potential public debut, even as the company continues to negotiate its current private funding round. If the company proceeds with the IPO this year, it would follow the closing of the current funding round, which is expected to close soon.

Why it matters

Anthropic’s massive valuation jump signals sustained, aggressive investor appetite for AI infrastructure, setting the stage for a potential public market debut that would be a landmark event for the sector.