Fears of an AI bubble do not appear to have slowed investors. Anthropic raised $10 billion at a $350 billion valuation in a new funding round, while Elon Musk’s xAI took $20 billion, doubling its valuation in a year to $230 billion, despite an ongoing row about its chatbot creating sexualized images of children.
Both companies are expected to go public this year, and Anthropic — whose model is popular with businesses for its coding strength — projects breaking even by 2028.
OpenAI is also seeking additional capital, and has invested hundreds of billions in data centers. The AI boom is driving demand for chips, with semiconductor manufacturer Samsung forecasting record earnings and seeing a 125% increase in its share price last year.