AI Investor Loyalty Collapses: Dozen OpenAI Backers Fuel Rival Anthropic's $30B Mega-Round at $380B Valuation

In the fiercely competitive AI landscape, investor loyalty is crumbling as at least a dozen backers of OpenAI have poured funds into its direct rival, Anthropic.

Anthropic's recent $30 billion Series G raise, valuing the company at a staggering $380 billion, drew support from these overlapping investors amid soaring AI capital demands.

Shattering VC Norms

Historically, venture capitalists have shunned investments in direct competitors to preserve founder trust, board seats, and access to confidential information.

However, the unprecedented funding needs for AI infrastructure like massive data centers have upended these traditions, leading prominent firms to hedge their bets across rivals.

Dual investors include heavyweights such as Sequoia Capital, Founders Fund, Iconiq, and Insight Partners, alongside Fidelity and BlackRock affiliates.

OpenAI's Resistance

OpenAI CEO Sam Altman reportedly urged investors in 2024 to avoid funding rivals like Anthropic and xAI, though he denied outright bans while limiting data sharing for active rival backers.

Even as OpenAI nears its own colossal $100 billion funding round at over $300 billion valuation, the dual-backing trend signals a shift in investor priorities.

Future of AI Funding

This erosion of loyalty could normalize cross-investments, provided firms forgo board seats to mitigate conflicts.

Founders may now demand stricter conflict-of-interest disclosures in term sheets as AI labs compete for trillions in future capital.

While some VCs like Andreessen Horowitz remain loyal to one frontrunner, the AI gold rush suggests more will diversify amid explosive growth potential.

Ultimately, this hedging frenzy underscores AI's transformative scale, where massive returns outweigh traditional allegiances.