OpenAI and Anthropic dominate generative AI funding

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.