OpenAI and Anthropic May Compete, Yet Investors Remain Neutral

OpenAI and Anthropic have been in competition for talent, clients, and visibility. These rival AI laboratories stand on opposing sides regarding policy proposals, and their CEOs notably refrained from joining hands with other industry leaders at a recent business summit. However, they do share one significant connection: their investors.

According to a WIRED analysis of PitchBook data, approximately 90 venture capital firms and other financial managers have invested in both OpenAI and Anthropic in recent years. The data indicates that OpenAI and Anthropic have about 42 percent of their investors in common, with around one-third of Anthropic’s backers also investing in OpenAI. This includes prominent firms like Sequoia Capital, Greylock, Founders Fund, Redpoint Ventures, Emerson Collective, and Sound Ventures.

Last week, Anthropic announced a fundraising round that included 31 investors, at least 13 of whom have financial stakes in OpenAI, as per the PitchBook data and WIRED reporting. The actual number of shared investors could be understated, given the difficulties in obtaining information about private investments. WIRED identified at least a few investors missing from OpenAI’s records in the PitchBook data, including Amazon.

The degree of overlap is remarkable for two fierce rivals that began raising funds within a couple of years of each other. Three industry experts described this situation as unusual, if not unprecedented. This trend highlights the recent transformation of the venture capital landscape, the rise of two remarkable companies that have attracted unprecedented funding, and the intense competition among them and others in the AI sector.

“The ownership structure observed now provides valuable insight into how astute investors perceive this market. It appears that few believe it will be a winner-take-all scenario, or if it is, who the leading company will be,” says Tom Nicholas, a Harvard Business School professor and author of VC: An American History.

This investor overlap is particularly notable as Anthropic and OpenAI prepare for their stock market launches this year. Initial public offerings typically provide an opportunity for investors to realize profits from their startup investments. However, last year, only two-thirds of IPOs saw a significant increase in value. By investing in both OpenAI and Anthropic, backers may be enhancing their chances of success.

“Rather than viewing these firms as overlapping technologies, large investors are safeguarding their potential for returns,” states Kyle Stanford, director of venture capital research at PitchBook.

OpenAI and Anthropic did not respond to requests for comments. Several venture capital firms that have invested in both companies also declined or failed to respond to inquiries regarding their dual support for these startups.

A few provided insights only on the condition of anonymity, citing concerns over their industry relationships, and each described the simultaneous investment opportunities with OpenAI and Anthropic as a unique situation they had never faced before.

Traditionally, venture capital firms focus their investments on a single company in a specific competitive arena to avoid conflicts of interest, according to Stanford. Companies often share confidential information with investors or rely on them for advice and governance, and having stakes in competitors can lead to uncomfortable discussions.