Anthropic Eyes $75 Billion Valuation Amid Ethical Funding Debate

• Anthropic targets $75 billion valuation with investor support.
• Internal memo reveals CEO’s ethical concerns over funding ties.

On May 24, 2025, The Information reported that Anthropic is in talks to raise as much as $5 billion. The rising AI startup, which specializes in generative models, could see its valuation more than double from $18.4 billion to between $70 billion and $75 billion with this funding round. This potential funding reflects Anthropic's revenue growth and rising enterprise adoption; however, it has also sparked controversy due to ties with investors linked to authoritarian governments.

The company's projected valuation surge is driven by its strong annualized recurring revenue, which is projected to surpass $850 million by the end of 2025. Business subscriptions drive much of this growth, while the firm's flagship product, the Claude chatbot, has accelerated its enterprise partnerships and market adoption.

Middle Eastern investors, notably Saudi Arabia’s Public Investment Fund (PIF), have emerged as key contenders in Anthropic’s funding discussions. While these partnerships offer a strategic advantage given the required capital, internal debates have surfaced over their ethical implications. A leaked internal memo revealed concerns about accepting funds from sources tied to authoritarian governments. Although Anthropic CEO Dario Amodei acknowledged these challenges, he emphasized that such partnerships are necessary to maintain the company’s competitive edge in the evolving AI sector.

Meanwhile, the competitive landscape remains intense, as Anthropic vies with rivals like OpenAI and xAI to attract investment and release advanced AI models. OpenAI, for example, is reportedly preparing its GPT-5 model and actively raising funds, further fueling market competition. Although Anthropic and its competitors boast robust revenue growth, they remain unprofitable due to high expenditures. Training massive language models and competing for AI talent are expensive, which amplifies the urgency to secure substantial investment.

Existing investors like Amazon and Google continue to back Anthropic, and Amazon may increase its funding after already investing $4 billion in the startup. This move would signify confidence in Anthropic’s trajectory and its ability to navigate the crowded AI landscape.

Anthropic’s pursuit of significant funding and valuation growth emphasizes both the opportunities and dilemmas faced by cutting-edge AI firms in a rapidly transforming marketplace.