With AI, investor loyalty is (almost) dead: at least a dozen OpenAI VCs now also back Anthropic

The landscape of investor loyalty is undergoing a seismic shift, particularly in the AI sector, as evidenced by the recent funding rounds for OpenAI and Anthropic. OpenAI is nearing completion of a staggering $100 billion raise, while Anthropic has just secured a hefty $30 billion. This development highlights a growing trend: investor allegiance is teetering on the brink of extinction. At least a dozen venture capitalists who previously invested in OpenAI are now backing Anthropic's latest funding round. Prominent names such as Founders Fund, Iconiq, Insight Partners, and Sequoia Capital have all thrown their support behind Anthropic. While some dual investments can be justified, especially from hedge funds and asset managers focused on public stocks, the involvement of BlackRock is particularly noteworthy. Despite Adebayo Ogunlesi, a senior managing director at BlackRock, serving on OpenAI's board, affiliated funds from the firm participated in Anthropic’s latest raise. This scenario raises critical questions about loyalty among investors. Traditionally, venture capital firms have positioned themselves as supportive partners for startups, pledging to assist them in navigating competition. However, when investors hold stakes in both OpenAI and Anthropic, their true allegiances become murky. Startups typically share confidential business information with their investors, complicating the matter further, especially since VCs often take board seats, creating fiduciary responsibilities. Sam Altman, who has a background in venture capital as a former president of Y Combinator, has experienced this first-hand. In 2024, he reportedly provided his investors with a list of competitors he preferred they not support, which included companies like Anthropic and xAI. Although Altman later denied any threats regarding future funding rounds, he did state that investors making active investments would lose access to OpenAI's confidential information. The AI sector is breaking new ground with unprecedented financial inflows, as leading AI labs are raising funds amid skyrocketing growth and data center demands. As the stakes rise, investors may find it increasingly difficult to resist participating in multiple funding rounds, regardless of past loyalties. Despite the shifting tides, not all venture capital firms have embraced this new norm. Some, like Andreessen Horowitz and Menlo Ventures, continue to support only one of the leading AI companies. Our research identified a number of investors who remain committed to single investments, suggesting that the traditional rules of engagement are not completely abandoned. As the industry evolves, founders may need to reassess conflict-of-interest policies when negotiating term sheets with potential investors.