Anthropic overtakes OpenAI in valuation as AI sector approaches $1 trillion threshold
Economists warn that sky-high entry prices may pose risks for retail investors, even as both AI giants accelerate product releases and prepare for initial public offerings.
Anthropic has raised $65 billion in a Series H funding round, pushing its valuation to $965 billion and effectively overtaking rival OpenAI. The San Francisco-based artificial intelligence developer, creator of the Claude assistant, is now the most valuable AI startup globally as it nears the symbolic $1 trillion mark. OpenAI, which had been considered the heavyweight in the sector just a year ago, is now valued at $852 billion, having raised $122 billion in funding in March.
The latest capital injection for Anthropic was led by Altimeter Capital, Dragoneer, Greenoaks, and Sequoia Capital. The round included $15 billion in prior commitments, with a significant $5 billion contribution from Amazon. This valuation represents a near-tripling of the company’s worth from $380 billion in February, a rapid ascent driven by intense investor demand and the company’s expanding product ecosystem.
Anthropic’s growth trajectory has been bolstered by the release of its latest models and new commercial offerings. On May 28, the company launched Claude Opus 4.8, while also confirming plans to introduce Claude Mythos models featuring advanced cybersecurity capabilities. Due to previous security risks, these Mythos models have been rolled out only to a select group of companies. Additionally, the firm recently introduced 'Claude for Small Business', a package of agentic workflows designed to automate administrative tasks such as payroll, invoicing, and content strategy.
Despite the frenetic pace of capital raising and product innovation, market experts are urging caution regarding the upcoming initial public offerings for both Anthropic and OpenAI. Jay Ritter, an economist and IPO expert at the University of Florida, highlighted the potential disconnect between corporate value and investor returns. He noted that at the reported prices, it would be difficult for investors to achieve positive returns over a three-year period, emphasising that buyers must pay close attention to entry valuations.
The AI sector continues to experience a significant funding frenzy, with both firms preparing for public debuts at unprecedented valuations. While the companies demonstrate strong technological capabilities and market dominance, the speed at which they are scaling their financial profiles raises questions about long-term performance post-IPO. Investors will be closely watching how these valuations translate into public market performance as the firms move toward listing.
