Anthropic Nears $5B Funding at $170B Valuation with Middle East, Asia Investors

Anthropic, an AI startup backed by Amazon, is close to raising between $3 billion and $5 billion in funding that would value the company at approximately $170 billion, nearly tripling its valuation since March. The funding round is led by Iconiq Capital, with participation from sovereign wealth funds such as Qatar Investment Authority and Singapore’s GIC, marking a significant influx of Middle Eastern capital into the AI sector. CEO Dario Amodei has expressed ethical concerns about accepting funds from authoritarian-linked sovereign wealth funds but acknowledges the necessity of such capital to remain competitive against rivals like OpenAI, which also seeks Middle Eastern investment. This shift underscores the growing strategic importance of Gulf state investors in the global AI race, as their vast financial resources and evolving infrastructure make them key players in AI development. Anthropic’s increased valuation and funding efforts highlight the intense competition in generative AI, positioning it alongside industry leaders. The company's pragmatic approach balances ethical dilemmas with the realities of securing massive funding to sustain frontier AI research and development.