Tech
Cartoon of multiple rockets in space
(Getty Images)

AI startups’ high-velocity valuations are shooting sky-high

The race to invest in AI startups is pushing funding to new heights. Anthropic is reportedly close to a fundraising round with a $170 billion valuation, just five months after a $61.5 billion valuation.

Jon Keegan, Hyunsoo Rim
7/30/25 1:40PM

Investors are pouring billions into AI startups at a feverish pace, and valuations are shooting sky-high.

Yesterday, Bloomberg reported that Anthropic is closing in on a $5 billion fundraising round, with an eye-popping valuation of $170 billion. That’s a 176% increase in five short months from its $61.5 billion valuation in March.

Anthropic’s sharp rise in value comes as its sales are increasing at a brisk pace. Bloomberg reports that the startup is pulling in $5 billion in annual recurring revenue, and that the company sees that reaching $9 billion by the end of the year.

OpenAI’s valuation roughly doubled over six months from $157 billion last October to $300 billion after raising $40 billion in a round led by SoftBank.

Middle East money

As AI companies look for deep-pocketed investors to help pay to train new models and build data centers, all eyes are pointing to sovereign wealth funds in the Middle East.

Wired reports that Dario Amodei, Anthropic’s cofounder and CEO, recently announced to staff that the company would pursue investments from Middle Eastern countries, despite earlier opposition.

During President Trump’s trip to the Middle East, a flurry of investments were announced, sending a clear signal that the taps were open.

Saudi Arabia’s Humain announced a deal with Nvidia to build 500 megawatts of AI data centers filled with the company’s GPUs, and OpenAI announced a partnership to build “Stargate UAE.” There were also reports that OpenAI has discussed raising money from Saudi Arabia’s Public Investment Fund.

And the rush to invest in AI isn’t just limited to the startups seeking to build foundational models. Companies deep in the AI ecosystem like Databricks and Scale AI are currently valued at $62 billion and $29 billion, respectively. Scale AI recently saw its CEO depart to run Meta’s “Superintelligence Lab”; it also secured a $14.3 billion investment from the company.

More Tech

See all Tech
tech
Jon Keegan
2m

OpenAI building a teen mode that will guess a user’s age and restrict flirtatious and self-harm-related chats

After a series of alarming safety failures in which ChatGPT encouraged self-harm, OpenAI has announced a 120-day plan to roll out new protections for young users and those that may be experiencing a mental health crisis.

In a blog post today, OpenAI CEO Sam Altman gave an update on the plan, saying that the company was building an “under-18 experience” for teens that won’t engage in “flirtatious talk” or engage in any discussions of self-harm.

The teen mode will also try to contact underage users’ parents if self-harm ideation is detected, and could reach out to law enforcement if the parents can’t be reached, according to Altman.

The plan calls for a new “age-prediction” system that will default to the under-18 safety mode. In a move that could frustrate many ChatGPT users, adults can exit only upon verifying their age by sharing their ID.

Altman acknowledged the trade-off in a post on X, but said the priority is protecting young users:

“I don’t expect that everyone will agree with these tradeoffs, but given the conflict it is important to explain our decisionmaking.”

Young adults make up a substantial portion of OpenAI’s end users. According to a large study of real-world ChatGPT users released yesterday, half of all adult users included in the study were under 26.

Teen safety, freedom, and privacy

Teen safety, freedom, and privacy

The teen mode will also try to contact underage users’ parents if self-harm ideation is detected, and could reach out to law enforcement if the parents can’t be reached, according to Altman.

The plan calls for a new “age-prediction” system that will default to the under-18 safety mode. In a move that could frustrate many ChatGPT users, adults can exit only upon verifying their age by sharing their ID.

Altman acknowledged the trade-off in a post on X, but said the priority is protecting young users:

“I don’t expect that everyone will agree with these tradeoffs, but given the conflict it is important to explain our decisionmaking.”

Young adults make up a substantial portion of OpenAI’s end users. According to a large study of real-world ChatGPT users released yesterday, half of all adult users included in the study were under 26.

tech
Jon Keegan
48m

Anthropic data: Businesses are using Claude to automate rather than collaborate

Fresh on the heels of a revealing ChatGPT usage research paper from OpenAI, rival AI startup Anthropic released its own detailed look at how consumers and businesses are using its Claude AI chatbot.

While OpenAI’s study analyzed only end users of its ChatGPT chatbot, the Anthropic Economic Index report includes how businesses are using Claude via its API (application programming interface).

In a worrying sign of how AI might replace whole categories of human labor, Anthropic found that 77% of businesses using Claude were automating whole jobs away rather than collaborating with humans while they do their jobs.

The number of Claude users overall is tiny compared to ChatGPT, but its users do way more coding with the tool than with OpenAI’s chatbot.

The report also breaks down Claude usage by geography, showing that in the US, Washington, DC, has the highest Claude usage per capita, where the top tasks were document editing, gathering information, and job applications.

Anthropic Finds Businesses Are Mainly Using AI to Automate Work

Anthropic Finds Businesses Are Mainly Using AI to Automate Work

In a worrying sign of how AI might replace whole categories of human labor, Anthropic found that 77% of businesses using Claude were automating whole jobs away rather than collaborating with humans while they do their jobs.

The number of Claude users overall is tiny compared to ChatGPT, but its users do way more coding with the tool than with OpenAI’s chatbot.

The report also breaks down Claude usage by geography, showing that in the US, Washington, DC, has the highest Claude usage per capita, where the top tasks were document editing, gathering information, and job applications.

Rani Molla
Charged up
2h
Tesla still sells a lot more EVs in the US than anyone else

Tesla’s market share is declining but it’s still the biggest EV maker in the room.

Telsas in a parking lot in Brooklyn
tech
Rani Molla
4h

Tesla faces door handle probe after Bloomberg report

A week after Bloomberg published a report called “Tesla’s Dangerous Doors” that detailed instances where people were hurt or injured after accidents reportedly left the flush electronic door handles inoperable, the National Highway Traffic Safety Administration has launched a probe into the matter.

“NHTSA’s investigation is focused on the operability of the electronic door locks from outside of the vehicle as that circumstance is the only one in which there is no manual way to open the door,” the NHTSA wrote. It cited reports of parents being forced to break the windows of their Teslas to extract their children locked inside.

The probe adds to a list of headwinds Tesla is facing, including declining sales, the end of the federal EV tax credit, and increased competition. However, Tesla, riding high on news yesterday that CEO Elon Musk purchased $1 billion in shares, doesn’t seem to be dampened by the news. It’s up 1.5% premarket.

Tesla Faces Probe by US Auto Safety Agency Over Door Handles

Tesla Faces Probe by US Auto Safety Agency Over Door Handles

“NHTSA’s investigation is focused on the operability of the electronic door locks from outside of the vehicle as that circumstance is the only one in which there is no manual way to open the door,” the NHTSA wrote. It cited reports of parents being forced to break the windows of their Teslas to extract their children locked inside.

The probe adds to a list of headwinds Tesla is facing, including declining sales, the end of the federal EV tax credit, and increased competition. However, Tesla, riding high on news yesterday that CEO Elon Musk purchased $1 billion in shares, doesn’t seem to be dampened by the news. It’s up 1.5% premarket.

tech
Rani Molla
4h

Oracle jumps on report it’s involved in TikTok deal

Oracle is up nearly 5% this morning on a CBS report that it’s one of “multiple companies” involved in a deal to operate TikTok in the US. Oracle has long been considered a likely contender.

Whichever US entity ultimately takes over TikTok’s American operations will continue to use parent company ByteDance’s Chinese algorithm, the Financial Times reported earlier today. Concerns that Beijing could use the prized algorithm to manipulate US users and push propaganda was a key reason the government moved to ban the app in the first place, though much of the evidence remains classified.

US social media competitors Meta and Snap initially dropped yesterday on news of an impending deal but have since recovered and don’t seem to be affected premarket today.

Oracle could play key role in TikTok deal between Trump administration and China, sources say

Oracle could play key role in TikTok deal between Trump administration and China, sources say

US social media competitors Meta and Snap initially dropped yesterday on news of an impending deal but have since recovered and don’t seem to be affected premarket today.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.
©2025 Sherwood Media, LLC