OpenAI and Anthropic May Be Rivals, But Marketers Are Not Picking Sides

OpenAI and Anthropic fought for the workers, customersand public interest. Competing AI labs have been lit up conflicting aspects of policyand their CEOs were the only ones not to join hands among a dozen industry leaders at a business conference earlier this year. But they have one major area in common: their investors.

About 90 venture capital firms and other investment managers have invested in OpenAI and Anthropic over the past few years, according to a WIRED analysis of data from PitchBook, a platform that tracks startups. OpenAI shares about 42 percent of its revenue with Anthropic, according to the data. About a third of Anthropic’s investors are also OpenAI backers, including major firms such as Sequoia Capital, Greylock, Founders Fund, Redpoint Ventures, Emerson Collective, and Sound Ventures.

Last week, Anthropic created a fundraising announcement which named 31 investors – at least 13 of which have shares in OpenAI, according to PitchBook data and WIRED reports. The number of ordinary investors may be small, because gathering information about private investments is difficult. WIRED identified at least a number of potential funders missing from OpenAI’s list in PitchBook data, including Amazon.

The scale of the merger is surprising for two fierce competitors who started raising money within a few years of each other. Three experts who study the financial industry described the similarities as unusual, or unprecedented. This event highlights the recent evolution of the financial industry, the emergence of two surprising companies that have raised an incredible amount of money, and the open competition between them and others in AI.

“The pattern of ownership that you see right now is a real indication of how investors see this market, and the answer seems to be that few believe that this is going to be a successful market, or if it is, who the main player will be,” says Tom Nicholas, Harvard Business School professor and author. VC: American History.

The combination of investors is also seen as Anthropic and OpenAI they want to make their initial investment in the market this year. Initial public offerings are often an opportunity for investors to realize value in their initial ownership. But last yearonly two-thirds of IPOs attracted a large crowd. By betting in OpenAI and Anthropic, investors can be increasing their chances of success.

“Instead of looking at these companies as technology breakthroughs, what these great entrepreneurs are doing is protecting their potential for returns,” says Kyle Stanford, director of venture capital research at PitchBook.

OpenAI and Anthropic did not respond to requests for comment. Several companies that invested in OpenAI and Anthropic also declined or did not respond to requests to explain why they chose to withdraw.

A few would speak on the condition of anonymity to avoid straining corporate relationships, and each called the funding opportunity with OpenAI and Anthropic unlike any they’ve had in the past.

old, small companies they will invest their money in one company in a competitive environment to avoid it conflicts of interestStanford says. Companies sometimes share personal information with investors or rely on them for advice or leadership, and being interested in competitors can lead to uncomfortable conversations.