In a bid to outshine its predecessor, OpenAI, Anthropic, an artificial intelligence startup founded by former OpenAI employees in 2021, is on the verge of securing a substantial $750 million in Series C funding. The potential valuation could skyrocket to an impressive $18.4 billion, signifying Anthropic’s emergence as a significant player in the competitive AI landscape.

Silicon Valley venture capital firm Menlo Ventures is reportedly leading the funding round, marking a crucial step in Anthropic’s mission to advance its safety-focused conversational AI chatbot. While the deal has not been finalized and remains confidential, insiders familiar with the matter suggest that Menlo Ventures is playing a pivotal role in this financial boost.

Anthropic’s recent funding endeavors highlight a strategic investment spree. In October, Alphabet Inc.’s Google committed a noteworthy $2 billion, and earlier in the year, Amazon.com Inc. pledged an investment of up to $4 billion. These investments, structured as convertible notes, underscore the industry’s confidence in Anthropic’s potential for significant growth.

The startup’s flagship product, the conversational AI chatbot named Claude, is designed with diverse functionalities, including summarization, search, question answering, and coding. The founders’ departure from OpenAI, driven by differences in the company’s direction, positions Anthropic as a distinctive player, bringing innovation and a fresh perspective to the rapidly evolving AI sector.

Anthropic is not solely focused on technological advancement but also places a strong emphasis on responsible AI practices. Operating as a public-benefit corporation, the company is committed to contributing to the greater good. Anthropic functions under a Long-Term Benefit Trust, featuring disinterested members separate from its corporate board.

Earlier this year, Anthropic secured a substantial cloud agreement with Google, surpassing a subsequent $2 billion investment from the tech giant. The company’s collaboration with Amazon further solidifies the trend of cloud service providers investing in promising AI startups, establishing future partnerships and leveraging the vast computing resources required for cutting-edge AI development.

PitchBook data from earlier this year indicated Anthropic’s valuation at around $5 billion, reflecting a remarkable surge during recent funding rounds. In direct competition with OpenAI, another generative AI company backed by Microsoft Corp.’s substantial $10 billion investment, Anthropic is dedicated to building advanced chatbots capable of generating content in response to prompts.

If successful, this imminent funding round is poised to position Anthropic as one of the most well-funded and promising players in the rapidly expanding field of artificial intelligence, highlighting the company’s commitment to innovation, responsible AI practices, and industry leadership.