Anthropic raises $30B at a $380B valuation amid bubble fears

Anthropic raised $30 billion at a $380 billion valuation, as fears of a bubble grew.

The funding round comes ahead of an expected IPO, perhaps this year. The company’s new coding tools have changed how software developers work — Spotify said its top programmers haven’t written any code themselves since December. But the market is skittish. Investors have jumped on tech firms’ bond sales, but others warned of “bubble-like behavior,” the Financial Times reported.

Tech stocks fell sharply Thursday, with fears both that AI is overhyped and that it isn’t: If it is, AI firms are overvalued; if it isn’t, software companies could be disrupted. “Right now, [investors are] focusing on the disruptive aspects,” one analyst told The Wall Street Journal.