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Sara Montes de Oca

Anthropic and Menlo Ventures Launch $100 Million Fund to Boost AI Startups and Compete with OpenAI

Anthropic, in collaboration with Menlo Ventures, has announced the creation of the Anthology Fund, a $100 million initiative aimed at supporting early-stage startups and encouraging them to utilize Anthropic's artificial intelligence technology.


This new fund seeks to replicate the success of the iFund, a joint effort by Apple and Kleiner Perkins launched in 2008 to aid developers on Apple's mobile platforms.


Menlo Ventures will finance the investments, while Anthropic is set to offer founders $25,000 in credits for using its large language models. This partnership takes inspiration from the iFund, which began with a $100 million investment and expanded to $200 million within two years.


Matt Murphy, a partner at Menlo Ventures, highlighted the similarities between the initiatives and noted the accelerated pace of AI development compared to past technological advances.


Venture capitalists are increasingly eager to attract AI startups, with funding for these ventures rising sharply in recent months. Anthropic is enhancing its support for startups by providing coaching, quarterly meetups, and direct access to its resources, aiming to foster a productive feedback loop that will enhance its own AI offerings.


Unlike traditional investment models, Anthropic will not seek equity in the startups it supports. Daniela Amodei, co-founder of Anthropic, emphasized the firm's commitment to reducing entry barriers for new AI companies by offering essential resources and guidance.


This strategy positions Anthropic as a direct competitor to OpenAI, which has its own $175 million venture fund aimed at supporting AI startups with significant impact potential.


Murphy expressed confidence in the unique position of the Anthology Fund to align strategic partnerships and cultivate a community of innovative entrepreneurs focused on groundbreaking developments in AI.


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