Anthropic and OpenAI are both launching joint ventures for enterprise AI services

In a significant move for the enterprise AI landscape, Anthropic unveiled a new joint venture aimed at enhancing AI services for businesses. This initiative will see collaboration with prominent financial partners, including Blackstone, Hellman & Friedman, and Goldman Sachs, all of whom will serve as foundational investors. The venture has garnered support from an array of venture capitalists, hedge funds, and private equity firms such as Apollo Global Management, General Atlantic, GIC, Leonard Green, and Sequoia Capital. According to reports from The Wall Street Journal, this new endeavor is valued at approximately $1.5 billion, bolstered by a substantial $300 million investment each from Anthropic, Blackstone, and Hellman & Friedman. Coinciding with Anthropic's announcement, OpenAI is reportedly on the brink of launching a similar initiative known as The Development Company. This venture aims to operate on a grander scale, with plans to raise $4 billion from 19 investors and a projected valuation of $10 billion. Notable backers for OpenAI include TPG, Brookfield Asset Management, Advent, and Bain Capital, with no overlap in investment between the two companies' ventures. Both Anthropic and OpenAI's new ventures share a common objective: to attract capital from alternative asset managers to forge new pathways for enterprise AI innovations. These ventures are expected to provide their investors with exclusive sales opportunities within their portfolio companies, while also enhancing the value derived from any subsequent contracts. With the new influx of capital, both companies aim to increase their engineering capabilities, aligning with the forward-deployed engineer model that has gained traction in the technology sector. Anthropic emphasized in their announcement that their engagements will involve direct collaboration between engineering teams and the end-users, such as clinicians and IT staff, to develop tools that seamlessly integrate into existing workflows. As both AI powerhouses accelerate their fundraising efforts, they are also eyeing potential public offerings. Notably, OpenAI reported $122 billion in funding raised by the end of March, with a staggering valuation of $852 billion. Meanwhile, TechCrunch noted that Anthropic is nearing the completion of its funding round, seeking $50 billion at a valuation of $900 billion.