Lightspeed’s $2 Billion Anthropic Megadeal Cements VC Agency’s AI Ambitions

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(Bloomberg) — Within the quiet days earlier than Christmas final 12 months, when most enterprise capitalists had retreated to vacation escapes in Aspen or Jackson Gap, Lightspeed Enterprise Companions’ investing group was considering a bid for a bit of OpenAI rival Anthropic.

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The enterprise capital agency approached Anthropic with a suggestion to guide a multibillion-dollar funding, in keeping with an individual accustomed to the matter. An settlement rapidly took form: a $2 billion funding spherical at a $60 billion valuation, tripling what the startup was price a 12 months earlier. By early January, the deal was successfully achieved.

With $25 billion below administration, Lightspeed is a part of a rarified strata of VC corporations prepared and in a position to again tech’s hottest, and most costly, corporations. Along with Anthropic, Lightspeed has lately participated in a big funding spherical for synthetic intelligence firm Databricks Inc. that valued it at $62 billion, in addition to an funding in Elon Musk’s xAI at a $50 billion valuation.

AI megadeals have turn into a staple of the top-tier VC food regimen regardless of the dangers, together with that corporations haven’t but confirmed they will revenue off these investments.

“It’s high-stakes poker,” stated Sierra Ventures Managing Companion Tim Guleri, an AI investor.

Up to now three months alone, xAI, OpenAI and Anthropic have raised greater than $20 billion to help their hefty computing prices. These offers collectively valued the three corporations at greater than $250 billion. Altogether, US AI startups raised a document $97 billion in 2024, in keeping with PitchBook knowledge.

For enterprise capitalists, there may be rising stress — notably on those who missed the possibility to again the highest AI corporations at decrease costs — to align themselves with the main gamers earlier than it’s too late, buyers stated. Representatives for Lightspeed and Anthropic declined to remark for this story.

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“It reveals you’re within the recreation,” stated Peter Werner, co-chair of Cooley’s enterprise capital follow group. “What you don’t wish to be is a enterprise fund that’s making an attempt to be within the combine, lacking out or creating a repute that you simply’re not nimble sufficient to get into the perfect and hottest rounds.”

VC Shift

Lightspeed was based greater than 20 years in the past on the heels of the dot-com bust by Barry Eggers, Christopher Schaepe, Peter Nieh and Ravi Mhatre, who led the Anthropic negotiations. It’s finest identified for savvy investments in client know-how, fintech and enterprise software program, making early bets on corporations like Snap Inc., Affirm Holdings Inc. and Rubrik Inc. Regardless of its monitor document, the agency has but to turn into as a lot of a family title as among the most well-known tier one VC gamers. With its aggressive AI bets, insiders say these offers might completely elevate its standing — in the event that they succeed.

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