Anthropic, the artificial intelligence startup backed by Amazon and Google, is in talks to raise a $3.5 billion funding round, significantly exceeding initial expectations. If completed, the round would propel the company’s valuation to an estimated $61.5 billion, nearly tripling its previous $18 billion valuation.
The latest funding round, confirmed by multiple sources familiar with the deal, is reportedly being led by Lightspeed Ventures with participation from General Catalyst and other investors. Initially, Anthropic had set out to raise around $2 billion, but investor demand appears to have pushed the target higher.
The round follows the release of the company’s most advanced yet, Claude 3.7 Sonnet.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
Anthropic’s push for new capital underscores the sustained investor enthusiasm for AI startups, even as global competition intensifies. The funding round follows major investments in leading AI firms, such as OpenAI, Mistral, and Elon Musk’s xAI, as investors scramble to back the most promising players in the field.
The race for dominance in artificial intelligence has become increasingly competitive, with Chinese AI company DeepSeek emerging as a potential disruptor. Nevertheless, Anthropic has continued to strengthen its position as a top-tier AI contender, buoyed by its heavy backing from Amazon and Google, who have collectively poured billions into the startup.
Anthropic Unveils Claude 3.7 Sonnet, Its Most Advanced AI Yet
Alongside its ambitious fundraising push, Anthropic has also launched Claude 3.7 Sonnet, which the company calls its “most intelligent AI model yet.” The model, released on Monday, introduces a hybrid reasoning system that blends real-time response generation with more complex reasoning capabilities.
The new model represents a shift in AI development strategy, as it moves away from separate models for reasoning and real-time responses. Instead, Anthropic has integrated both functions into a single system. The idea, according to Dianne Penn, Anthropic’s product research lead, is to simplify the user experience while enhancing performance.
“We fundamentally believe that reasoning is a feature of the AI rather than a completely separate thing,” Penn told The Verge, explaining that the model should be able to instantly answer simple questions like “What time is it?” while taking longer to tackle complex requests, such as planning a two-week trip to Italy based on March weather conditions.
New AI Coding Tool: Claude Code
Anthropic has also introduced a “limited research preview” of Claude Code, a new AI-powered coding assistant. The company already supports existing AI-driven coding platforms like Cursor, but Claude Code is designed as an active collaborator.
Unlike basic coding assistants, Claude Code can search and read code, edit files, run tests, push code to GitHub, and interact with command-line tools. Inside Anthropic, engineers have used it for extended coding sessions, iterating on test cases, and even building interactive applications.
Developers can access Claude 3.7 Sonnet through the Claude app, Anthropic’s API, Amazon Bedrock, and Google Cloud’s Vertex AI. Pricing remains the same as the previous version, Claude 3.5 Sonnet, at $3 per million input tokens and $15 per million output tokens.
Anthropic’s Competitive Edge in the AI Race
The release of Claude 3.7 Sonnet is evidence that Anthropic remains a formidable player in the AI race, even as rivals like OpenAI and Musk’s xAI rapidly advance their own models. Just last week, Musk announced Grok-3, his company’s latest AI model, highlighting how quickly the AI landscape is evolving.
Anthropic’s approach appears to be setting the stage for a future where AI models don’t just generate responses but actively reason, problem-solve and code with greater efficiency. The model’s enhanced capabilities in finance, law, and software engineering suggest that AI-powered automation could soon take a more prominent role in high-value industries.
With the AI arms race intensifying, the question remains whether Anthropic can maintain a lead over competitors like OpenAI, Google DeepMind, and Mistral. Despite its recent breakthroughs, the company still lacks real-time web search capabilities, a feature available in rival models. However, its more up-to-date knowledge cutoff (October 2024) gives it an advantage over earlier AI iterations.
Additionally, Anthropic is introducing developer-controlled “thinking” parameters, allowing users to dictate how long the model spends generating a response. Michael Gerstenhaber, VP of product at Anthropic, explained that in some cases, developers may specify that an AI-generated response should take no more than 200 milliseconds, ensuring faster interactions for time-sensitive applications.
The Billion-Dollar AI Arms Race Continues
Anthropic’s ability to secure $3.5 billion in funding will likely cement its position as a frontrunner in AI development. However, with OpenAI, Google, and Musk’s xAI all aggressively iterating on their models, the competition remains fierce.
For now, Claude 3.7 Sonnet represents a major leap forward in AI reasoning and automation, but it is not certain whether it will be enough to give Anthropic a long-term edge in the AI race. However, with billions in new capital and deep-pocketed backers like Amazon and Google, the company is clearly positioning itself to be a dominant force in the AI industry.