- Anthropic is in talks to raise $3–$5 billion, aiming for a $150B+ valuation.
- Company revenue rose from $1B to $4B in under a year.
- CEO plans strategic Middle East funding shift to compete in global AI race.
Anthropic in Funding Talks to Soar Beyond $150 Billion
Anthropic, a fast-growing artificial intelligence startup, is reportedly seeking new investments that may push its market value past $150 billion. The San Francisco-based company recently approached investors for a fresh $3–$5 billion in funding. If successful, this round would more than double its earlier valuation of $61.5 billion, achieved just four months ago during its Series E investment round.
Founded by siblings Dario and Daniela Amodei in 2021, the firm has quickly become a strong challenger to established AI companies like OpenAI. Despite its unprofitability, the firm has drawn major interest from global investors thanks to its rapid revenue rise and advanced technology development.
Explosive Revenue Growth Signals Strong Demand
Anthropic’s financial growth has shocked the tech world. In just seven months of 2025, its annualized recurring revenue climbed from $1 billion to over $4 billion. The company’s AI model, Claude, has gained major traction in the business sector, especially in coding and enterprise applications. Now, 80% of the firm’s income comes from business clients rather than casual users.
Even more remarkable, Claude’s revenue jumped from $3 billion to $4 billion in just one month. This aggressive rise shows strong demand for Claude’s capabilities and indicates future revenue potential remains high. However, the company still spends heavily on training its models and managing operations, leading to ongoing cash burn.
Middle East Becomes Strategic Focus
In a recently leaked internal Slack post, CEO Dario Amodei admitted the company would actively seek investment from Gulf nations, including the UAE and Saudi Arabia. This announcement marks a complete shift from its 2024 stance, when the company had rejected similar offers over ethical and security concerns.
Amodei acknowledged that the region holds immense financial resources—estimated above $100 billion—which could give Anthropic a much-needed edge in the global AI race. He also admitted the potential moral conflict of accepting funds from authoritarian regimes, but said it’s a necessary move to stay competitive.
Reversing Earlier Concerns About Gulf Money
In 2024, Anthropic had turned down Saudi Arabian funding, citing national security worries and governance challenges. But now, the leadership sees strategic advantage in accessing Middle Eastern capital. Amodei stated in the memo that all future deals would be strictly financial with no decision-making power given to foreign investors.
He mentioned that while such investors might still hold “soft power” due to recurring investment rounds, it’s a tradeoff the company is prepared to manage. This shift has drawn both criticism and support within the tech and finance communities.
MGX Emerges as Central Investor
One of the most influential players in these talks is MGX, Abu Dhabi’s government-owned AI investment division. MGX has previously bought an 8% stake in Anthropic from the collapsed crypto exchange FTX for $1.3 billion in 2023. Now, with a new valuation in sight, that stake may be worth over $12 billion.
Reports suggest MGX is interested in deepening its investment and aims to be a leading voice in Anthropic’s next funding round. The group’s involvement reflects broader Gulf ambitions to dominate future technologies, including AI, quantum computing, and biotechnology.
Gulf States Push AI to the Forefront
Wealthy Middle Eastern nations, particularly the UAE and Saudi Arabia, have positioned themselves as major backers of AI innovation. Their sovereign wealth funds hold over $100 billion in capital that’s ready to fuel next-generation tech.
This movement aligns with President Donald Trump’s Middle East visit in May 2025, which included key tech figures like Elon Musk and OpenAI CEO Sam Altman. Though Anthropic was not present at the meetings, the tour highlighted the strategic importance of the region in the future of technology.
Rivals Secure Gulf Deals, Pressuring Anthropic
Anthropic’s sudden openness to Gulf funding also comes in response to mounting competitive pressure. Rivals like OpenAI have already cemented large-scale partnerships in the region. OpenAI launched a $500 billion AI infrastructure project called Stargate in January 2025 with support from UAE’s state-owned funds.
Saudi Arabia’s own AI firm, Humain, has invested in 18,000 Nvidia GB300 chips and formed alliances with tech giants like AWS and AMD. These moves make it clear that any company wanting to lead in AI must build ties with Gulf nations.
Anthropic’s Absence Highlights Competitive Disadvantage
Anthropic’s lack of participation in high-level discussions during President Trump’s 2025 Gulf tour exposed a major weakness in its strategy. As other AI firms secured key deals and government access, Anthropic remained on the sidelines. This exclusion now appears to have prompted the internal shift in funding approach.
Amodei mentioned in his memo that the company’s absence put it at a “significant disadvantage.” He added that working with Middle Eastern investors—though imperfect—could help Anthropic regain lost ground while staying more ethical than its competitors.
The AI Race Becomes Geopolitical
The global competition in artificial intelligence is no longer just about who has the best models—it’s also about who has the deepest pockets. As AI becomes more essential for economic and military strength, countries and corporations are aligning themselves strategically.
Middle Eastern governments are using their oil wealth to claim seats at the AI table. With money flowing into top startups, these nations are securing influence over the future direction of artificial intelligence—whether through boardrooms or data centers.
Conclusion: Risk and Reward in Pursuit of Dominance
Anthropic stands at a turning point. With rapid financial growth but limited profit, the startup must choose between independence and access to vital funding. Its strategic pivot toward Middle East investment reflects the realities of today’s global tech competition, where ideals often clash with the need for scale.
How it balances ethics, profit, and progress will define its future—and may determine whether it can become a lasting force in the AI world.