Anthropic Seeks $25 Billion at $350 Billion Valuation in Major Funding Round

Anthropic has announced it is raising a minimum of $25 billion in funding at a $350 billion valuation. Sequoia Capital is among the investors participating in the round (). This move underscores the growing investment in artificial intelligence and the company's positioning as a key player in the AI sector.

The AI industry continues to show robust momentum. Taiwan Semiconductor Manufacturing Company (TSMC), a major supplier of AI chips, reported a 35% year-over-year profit increase for the fourth quarter. TSMC raised its capital spending forecast for 2026 to between $52 billion and $56 billion. The company's performance reflects strong demand for AI hardware and infrastructure.

C3.ai recently released earnings data showing mixed results. The company exceeded Q2 2026 expectations with an EPS of -$0.25 versus a forecast of -$0.33. However, revenue declined year-over-year by 20.3% to $75.15 million. In addition, C3.ai's chairman Thomas Siebel sold 309,589 shares in a recent transaction, representing a 32.87% reduction in his holdings.

Why Did This Happen?

Anthropic's funding round reflects broader market confidence in AI's future. The company's valuation is a sign of the market's willingness to invest in AI capabilities and infrastructure. Sequoia Capital's participation indicates strong institutional backing.

TSMC's strong performance is another indicator of AI's expanding footprint. The company's high-performance computing division, which includes AI and 5G applications, drove the majority of its sales in the most recent quarter. Analysts are highlighting the transition from heavy AI training investments to inference-driven applications.

How Did Markets React?

Shares of TSMC jumped more than 5% following its earnings report. The stock's year-to-date gain stands at about 13%. Other chip stocks, including Nvidia and Broadcom, also saw gains. The VanEck Semiconductor ETF (SMH) hit a 52-week high on the back of TSMC's results.

C3.ai's stock price fell slightly after the earnings release, trading down $0.40 to $13.52. The company has a 52-week high of $35.98 and a 52-week low of $12.59 according to market data. Analysts remain divided on the stock's future, with a consensus rating of 'Reduce' and an average target price of $21.92.

What Are Analysts Watching Next?

Nvidia continues to expand its AI ecosystem. The company recently invested in Harmonic, a math AI startup, as part of a $120 million funding round. The deal values Harmonic at $1.45 billion. This investment aligns with Nvidia's strategy to develop an ecosystem that relies on its processors for AI training and inference.

Regulatory challenges persist for Nvidia, particularly in China. A top US House member warned that memory shortages could affect the number of export licenses issued for Nvidia's H200 processors. The issue stems from export control rules that require companies to prove their sales won't impact domestic supply.

BlackRock and Microsoft are also pushing forward with their AI partnership. The venture has raised $12.5 billion so far, bringing the partners closer to their $30 billion fundraising goal. The funds will support data center and energy infrastructure projects.

TSMC's capital expenditure forecast for 2026 remains a key indicator for the sector. The chipmaker expects to spend between $52 billion and $56 billion, a significant increase from $40.9 billion in 2025 according to CNBC reporting. This spending reflects confidence in AI's long-term growth trajectory.