HomeBusinessLightspeed's $2 Billion Anthropic Megadeal Boosts VC Firm's AI Ambitions

Lightspeed’s $2 Billion Anthropic Megadeal Boosts VC Firm’s AI Ambitions

(Bloomberg) — In the halcyon days before Christmas last year, when most venture capitalists had retreated to vacation spots in Aspen or Jackson Hole, the investment team at Lightspeed Venture Partners was considering a bid for a unit of OpenAI rival Anthropic.

Most read from Bloomberg

The venture capital firm approached Anthropic with an offer to lead a multibillion-dollar investment, according to a person familiar with the matter. A deal quickly took shape: a $2 billion funding round at a $60 billion valuation, tripling what the startup was worth a year earlier. The deal was actually completed at the beginning of January.

With $25 billion under management, Lightspeed is part of a rare group of venture capital firms willing and able to back the hottest and most expensive technology companies. In addition to Anthropic, Lightspeed recently participated in a major funding round for artificial intelligence company Databricks Inc., which valued it at $62 billion, as well as an investment in Elon Musk’s xAI at a $50 billion valuation.

AI megadeals have become a staple of the top-tier VC diet, despite the risks, including the fact that companies have not yet proven they can profit from these investments.

“It’s high-stakes poker,” says Tim Guleri, Managing Partner of Sierra Ventures, an AI investor.

In the past three months alone, xAI, OpenAI, and Anthropic have raised more than $20 billion to cover their high computing costs. These deals collectively valued the three companies at more than $250 billion. According to data from PitchBook, US AI startups will have raised a total of $97 billion by 2024.

For venture capitalists, there is increasing pressure – especially on those who have missed the opportunity to back the best AI companies at lower prices – to join the leading players before it is too late, investors say. Representatives for Lightspeed and Anthropic declined to comment for this story.

See also  I inherited $ 160k from pension accounts. Do I have to worry about RMDs?

“It shows that you’re on board,” says Peter Werner, co-chair of Cooley’s venture capital practice group. “What you don’t want to be is a VC trying to be part of the mix, missing out or building a reputation for not being agile enough to get into the best and hottest rounds.”

VC shift

Lightspeed was founded more than twenty years ago after the Internet crisis by Barry Eggers, Christopher Schaepe, Peter Nieh and Ravi Mhatre, who led the anthropic negotiations. It is best known for its smart investments in consumer technology, fintech and enterprise software, making early bets on companies like Snap Inc., Affirm Holdings Inc. and Rubrik Inc. Despite its track record, the company has not yet become a household name. as some of the most famous VC players at level one. With its aggressive AI bets, insiders say these deals could permanently improve its position – if they succeed.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments