SAN FRANCISCO - Anthropic, a prominent competitor to OpenAI, is reportedly in discussions to secure up to $5 billion in new funding, a move that could skyrocket its valuation to an estimated $170 billion. This potential investment, led by Iconic Capital, comes just four months after a significant funding round in March, highlighting the intense investor interest in the artificial intelligence sector.

Sources familiar with the matter indicate that Anthropic is seeking between $3 billion and $5 billion in fresh capital. If successful, this latest fundraising effort would nearly triple the company's valuation from $61.5 billion in March, when it raised $3.5 billion in a round spearheaded by Lightspeed Venture Partners. The rapid increase in valuation underscores the explosive growth and perceived potential of AI developers.

Founded in 2021 by former members of OpenAI, Anthropic has quickly established itself with its advanced AI model, Claude. The company recently unveiled its latest iteration, Claude Opus 4, in May. Anthropic has also garnered substantial investments from tech giants like Amazon and Google, further solidifying its position in the competitive AI landscape.

This latest funding initiative could bring Anthropic closer to the valuation of OpenAI, the developer of ChatGPT, which was valued at $300 billion after completing a $40 billion funding round in March. The race between these two AI powerhouses is intensifying as both seek to dominate the rapidly evolving field of artificial intelligence.

Interestingly, Anthropic's CEO, Dario Amodei, has reportedly shifted his stance on accepting investments from sovereign wealth funds, particularly from the Middle East. While previously expressing reservations due to national security concerns, Amodei now acknowledges the necessity of such capital. According to IT media outlet Wired, Amodei stated, "It has become more difficult to be at the forefront of AI development without utilizing sovereign wealth funds from the Middle East." This indicates a pragmatic recognition of the vast resources available from these funds, which are increasingly looking to diversify their portfolios into cutting-edge technologies.

In addition to Iconic Capital, Anthropic is reportedly in negotiations with the Qatar Investment Authority and Singapore's GIC, both prominent sovereign wealth funds, for this latest funding round. This broad outreach signifies Anthropic's ambition to secure substantial capital to fuel its research, development, and expansion efforts in the fiercely competitive global AI market. The influx of such significant investment would enable Anthropic to further innovate and scale its AI technologies, potentially reshaping the future of artificial intelligence.