Anthropic in $3B–$5B Middle East Funding Drive to Triple Valuation to $150B

Anthropic, the artificial intelligence startup co-founded by former Meta researchers, is in advanced negotiations to secure up to $5 billion in fresh funding from Middle Eastern investors, including Abu Dhabi’s Mubadala Growth Management (MGM) fund. The potential raise, which could range between $3 billion and $5 billion, aims to elevate the company’s valuation beyond $150 billion—nearly tripling its current estimated worth of $61.5 billion. This marks one of the largest single-round fundraising efforts in the AI sector and highlights the Middle East’s growing interest in high-tech investments as part of broader economic diversification strategies.

The talks involve MGX, a key Abu Dhabi-based fund linked to Mubadala Investment Company, which has previously invested in AI and clean energy ventures. Other unnamed Middle Eastern entities are also speculated to be part of the round, though no formal commitments have been confirmed. This follows an earlier deal where an Abu Dhabi fund, connected to MGX, acquired nearly $500 million worth of shares from the now-defunct crypto exchange FTX. The funding discussions underscore the region’s strategic pivot toward high-tech industries and align with initiatives such as Saudi Arabia’s Vision 2030, which emphasizes technology-driven economic growth.

Anthropic’s valuation surge reflects its competitive positioning in the generative AI industry, where it directly rivals OpenAI, xAI, and tech giants like Google and Meta. The startup, which has seen its annualized recurring revenue grow from $1 billion to over $4 billion—primarily from enterprise subscriptions—has previously avoided direct fundraising from Middle Eastern sovereign wealth funds. However, its recent engagement with Middle Eastern investors signals a potential strategic shift. CEO Dario Amodei raised ethical concerns about accepting funds from entities linked to authoritarian regimes in an internal memo, acknowledging the practical challenges of adhering to such principles while scaling a business.

The fundraising efforts also place Anthropic in a broader context of global AI competition. OpenAI, which dominates consumer adoption with over 500 million weekly users on its ChatGPT platform, is simultaneously raising tens of billions of dollars, led by SoftBank. Anthropic’s enterprise-focused tools, such as its Claude chatbot, have gained traction in sectors like code generation, positioning the company as a key player in the market. Amazon, which has already committed up to $8 billion in investments, is reportedly in talks to increase its stake further, aiming to maintain influence as the AI startup scales.

Analysts note that the Middle East’s involvement in Anthropic’s funding round reflects a trend of regional sovereign wealth funds and private equity groups pivoting toward AI. However, the lack of publicly disclosed terms and the speculative nature of valuation targets mean the final figures remain subject to change. The fundraising timeline is also significant, with discussions intensifying amid heightened global competition for AI talent and market share. Sources suggest the round could finalize by late 2025, though Anthropic has not publicly commented on the reports.

Source: [1] [Anthropic is in talks to raise up to $5 billion from the Middle East] [https://www.msn.com/en-us/money/companies/anthropic-is-in-talks-to-raise-up-to-5-billion-from-the-middle-east/ar-AA1JnKfn?ocid=finance-verthp-feeds]

[2] [Anthropic in Talks With Middle East Investors to Double Valuation] [https://mlq.ai/news/anthropic-in-talks-with-middle-east-investors-to-double-valuation-over-150-billion/]

[4] [Sources: Anthropic is in talks to raise $3B to $5B, including from Middle Eastern investors] [https://www.facebook.com/Techmeme/posts/sources-anthropic-is-in-talks-to-raise-3b-to-5b-including-from-middle-eastern-in/1173****78135278/]

[5] [Anthropic’s $150 Billion Goal: How Amazon and Alphabet Could Benefit from the AI Surge] [https://www.tipranks.com/news/anthropics-150-billion-goal-how-amazon-and-alphabet-could-benefit-from-the-ai-surge]