The reign of ChatGPT in the artificial intelligence (AI) arena may soon be disputed, as a new challenger emerges on the horizon. Anthropic, an innovative AI startup, has created a promising smart chatbot named Claude, which aims to offer a safer platform for users.
As the competition heats up in the AI sector, Anthropic is preparing to make a significant impact. And this time, it might be OpenAI’s turn to push the Code Red button.
Anthropic: OpenAI’s Hot New Rival
Anthropic is a San Francisco-based startup founded by veterans of OpenAI, the creator of the celebrity chatbot ChatGPT. According to The New York Times, Anthropic could potentially secure a staggering $300 million in funding, which can boost its so-called “dry powder.”
Dry powder is a term used to describe a financial cushion, the ready reserve of cash held by corporations and private equity funds. This fund’s primary purpose is to participate in lucrative investments or weather any stormy economic times.
With the anticipated infusion of $300 million into its warchest, Anthropic could reach new heights and elevate its valuation to $5 billion. The startup has already made a splash in the AI world, having raised $704 million in Series A and Series B funding rounds last year, as reported by Crunchbase.
Another important thing to note here is its Series B funding, which was mostly funded by the now infamous FTX founder Sam Bankman-Fried.
Riding the wave of Silicon Valley’s current obsession with artificial intelligence, Anthropic and its innovative chatbot, Claude, are making their presence felt. In November, OpenAI raised the bar with the launch of ChatGPT, and now Anthropic is poised to follow in its footsteps.
Currently in closed beta, Claude is already turning heads with its ambitious goals. As detailed in its paper, the chatbot aims to tackle harmful prompts right away by educating users and explaining why they are dangerous or misinformed.
AI In, Web3 Out
According to Crunchbase, the AI industry has seen a remarkable surge in venture funding in recent years, capturing a substantial 10% of the total investment pie.
As other industries struggled with capital raising during 2022, the rising sector continued to thrive, cementing its status with a record-breaking second-best funding year ever.
Moreover, startups related to AI outperformed their Web3 counterparts, previously touted as Silicon Valley’s hottest investment opportunity. The continued growth of artificial intelligence showcases its unyielding potential and appeal to investors.
In the race to harness the power of cutting-edge, AI-driven language processing, startups like Cohere and DeepMind are attracting significant investments.
Cohere, a natural language processing (NLP) company, has already secured $170 million in two funding rounds. DeepMind, meanwhile, an AI establishment, was snapped up by Google’s parent company, Alphabet, in 2015 and is hard at work developing a similar language model to ChatGPT.
As the competition heats up, OpenAI is taking proactive steps to stay ahead of the curve. In fact, the company is already investing in startups that will utilize its language processing networks to secure its position in the rapidly expanding AI language processing market.
Indeed, Anthropic and its Claude AI chatbot will certainly face fierce competition in the fast-rising AI landscape.
You might also like: