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OpenAI and Anthropic dominate generative AI funding

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May 24, 2023
Data: PitchBook; Chart: Axios Visuals
Data: PitchBook; Chart: Axios Visuals

Four of the top 10 global VC deals in AI and machine learning in 2023 are for just two companies, per PitchBook data.

Why it matters: As interest in generative AI reaches fever pitch, OpenAI and Anthropic have a significant lead ahead of other startups in the sector.

Driving the news: Anthropic said Tuesday it raised $450 million in Series C funding led by Spark Capital.

  • That's the second-biggest funding round in the field this year. Anthropic is also tied in seventh place with its $300 million raise in March.

By the numbers: OpenAI reigns as the top-funded AI startup, bringing in a reported $10 billion in January from Microsoft.

  • OpenAI also closed a $300 million share sale in April at a valuation as high as $29 billion, TechCrunch reports.
  • Out of the $12.9 billion PitchBook tallied, about 86% was funneled into OpenAI or Anthropic.

What we're watching: Elon Musk suggested Tuesday he views the AI sector as a two-horse race between Microsoft's partnership with OpenAI and Google's DeepMind (Google is also an investor in Anthropic). He teased his interest in supporting a third player.

  • "I think there should be a significant third horse in the race here," Musk said during a Wall Street Journal event, Axios Closer co-author Hope King writes.
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