"Major investors switch alliances: Founders Fund, Iconiq, Sequoia Capital among those investing in both OpenAI and Anthropic in a $30B funding round. Notab
Title: Major Investors Shift Allegiance in AI Sector: OpenAI and Anthropic Funding Rounds
Lead:
In a shift of traditional investor loyalty, numerous backers of OpenAI have recently participated in Anthropic's $30 billion funding round. This development underscores the growing competition within the artificial intelligence sector.
**Key Players Involved**
- Founders Fund
- Iconiq
- Insight Partners
- Sequoia Capital
- D1
- Fidelity
- TPG
**Hedge Funds and Asset Managers**
Investors from the hedge fund or asset manager worlds, whose primary focus is on public stocks, have been understood to make dual investments. These include D1, Fidelity, and TPG.
**Unexpected Move by BlackRock**
One notable exception is the participation of Affiliated funds of BlackRock in Anthropic's funding round. Despite senior managing director and board member Adebayo Ogunlesi's role on OpenAI's board of directors, these funds have chosen to invest in Anthropic. This move reflects BlackRock's diversified investment portfolio, which includes mutual funds, closed-ends, and ETFs.
**Microsoft and Nvidia's Strategic Moves**
The history of OpenAI's relationship with Microsoft and the strategic hedging by Nvidia are well-known. These companies have likely chosen to invest in both AI players to secure their positions.
**Venture Capital Funds' Traditional Role**
In contrast, venture capital funds have historically positioned themselves as "founder friendly" and "helpful," with the expectation that they would aid a startup's success, particularly against major rivals. The question now arises: if an investor owns both OpenAI and Anthropic, to whom does their loyalty belong?
**Techcrunch Event**
The TechCrunch Founder Summit 2026 brings together over 1,000 founders and investors for a day dedicated to discussions on the future of AI and other emerging technologies.
**TechCrunch Founder Summit 2026: A Focus on Growth, Execution, and Real-World Scaling**
- **Summary**
On March 13, over 1,000 founders and investors will gather in Boston, MA for a full day of learning, networking, and strategy-sharing at the TechCrunch Founder Summit.
- **Attendees and Agenda**
The event aims to bring together individuals navigating similar growth stages, offering opportunities to learn from industry shapers and walk away with immediately applicable tactics. The focus is on growth, execution, and real-world scaling.
- **Startups and Confidential Information**
Unlike public companies, startups typically keep their business status confidential, sharing this information only with direct investors. In many cases, venture capitalists (VCs) also hold board seats, which adds an additional layer of fiduciary responsibility.
- **Sam Altman's Venture Capital Background**
The case becomes more intriguing due to Sam Altman's background in venture capital as a former president of Y Combinator. In 2024, he reportedly provided his investors with a list of OpenAI's rivals he did not wish them to back. The list primarily included companies founded by those who had departed from OpenAI, such as Anthropic, xAI, and Safe Superintelligence.
- **Controversy Surrounding Altman**
Altman later denied that he barred OpenAI investors from future rounds if they backed his perceived rivals. However, he did admit that he stated that if they made non-passive investments, they would no longer receive OpenAI's confidential business information, according to documents in the lawsuit between Elon Musk and OpenAI, as reported by Business Insider.
- **AI Breaking Mold**
The rapid growth of AI labs is also noteworthy, with these institutions raising record-breaking amounts of money and experiencing unprecedented expansion. This growth brings new challenges and opportunities in the ever-evolving landscape of artificial intelligence.
**Venture Capital Firms Divide Allegiance Between AI Competitors**
San Francisco - A division of loyalty among venture capitalists (VCs) has emerged in the rapidly growing field of artificial intelligence (AI), as some firms invest in competing companies without apparent concern for potential conflicts of interest.
**Investment Patterns**
- Andreessen Horowitz backs OpenAI but not Anthropic.
- Menlo Ventures backs Anthropic but not OpenAI.
- Other dual non-investors include Bessemer Venture Partners, General Catalyst, and Greenoaks.
**Single Investments Prevalent**
In research conducted by TechToday, a dozen VCs were identified as having direct investments in only one of the two AI companies. However, it should be noted that this list is not exhaustive, and further analysis may reveal more instances of such investment patterns.
**Notable Exceptions**
Some renowned Valley firms, such as Sequoia, have disregarded the traditional practice of avoiding investments in direct competitors. This shift in strategy highlights the immense potential returns these companies offer.
**Conflict of Interest Concerns**
One investor interviewed for this report shrugged off the concern, stating that as long as the firm does not hold a board seat, there is no perceived harm. However, founders are advised to consider conflict-of-interest policies before signing term sheets, regardless of the investment firm's reputation.
**Implications**
The growing trend of VCs investing in competing AI companies could have significant implications for the industry, particularly in terms of collaboration and competition dynamics. As these companies continue to evolve and mature, it will be interesting to observe how these relationships develop and impact the broader AI landscape.
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