Investor Faith in AI Falters as Leading VCs Back Both OpenAI and Anthropic

crypthub

about 10 hours ago

Changing VC Loyalty

Venture capitalists are backing both OpenAI and Anthropic, breaking the traditional rule against funding direct competitors. Firms such as Founders Fund, Iconiq Capital, Insight Partners and Sequoia Capital have joined OpenAI’s potential $100 billion round and Anthropic’s $30 billion raise. This dual‑investment pattern signals a major shift in Silicon Valley’s portfolio strategy.

Drivers of the Dual‑Investment Trend

The scale of AI funding now rivals public‑market deals, forcing investors to prioritize access to transformative technology over loyalty. Training large models and building infrastructure require billions, prompting diversification across multiple AI leaders. Large asset managers like BlackRock and Fidelity treat these stakes like public equities, where holding competing stocks is routine.

Founder Concerns and Ethical Tensions

OpenAI CEO Sam Altman warned that “non‑passive” investments in rivals could limit founders’ access to confidential information, highlighting growing worries about conflicts of interest. Some VCs still adhere to classic norms—Andreessen Horowitz backs only OpenAI, Menlo Ventures only Anthropic, and firms like Bessemer remain single‑company investors. The debate centers on fiduciary duties, information sharing, and board‑seat implications.

Practical Implications and Future Outlook

Founders now need to discuss conflict‑of‑interest policies during term‑sheet negotiations, asking about investors’ competing positions and data‑handling protocols. Industry analysts expect more specialization, consolidation, regulatory scrutiny, and novel investment vehicles to manage these overlaps. As AI behaves more like critical infrastructure, financing models may evolve toward utility‑style approaches that reshape traditional VC ethics.