Technology
Wednesday, July 17th, 2024 3:42 pm EDT
Key Points
- Anthropic and Menlo Ventures are launching a $100 million Anthology Fund to support early-stage AI startups, with Menlo providing the capital and Anthropic offering $25,000 in credits for its AI technology.
- Inspired by the successful iFund partnership between Apple and Kleiner Perkins, the Anthology Fund aims to establish a feedback loop to enhance Anthropic’s products while providing resources like coaching and direct communication to the startups.
- The fund targets the rapidly growing AI market, where funding more than doubled in the second quarter, and aims to benefit from the next generation of AI companies building on Anthropic’s infrastructure, differentiating itself from OpenAI’s venture fund.
Anthropic, in collaboration with one of its major investors, Menlo Ventures, is launching a $100 million fund named the Anthology Fund to support early-stage startups and integrate them with Anthropic’s AI technology. Menlo Ventures will provide the investment capital, while Anthropic will offer founders $25,000 in credits to use its large language models. This initiative is inspired by a similar partnership between Apple and Kleiner Perkins, called the iFund, which launched in 2008 with an initial $100 million to support developers on Apple’s mobile platforms. The iFund was highly successful, doubling to $200 million within two years and significantly benefiting Apple and its developers by providing mutual insights and support.
Matt Murphy, a partner at Menlo Ventures and a former Kleiner Perkins partner, emphasized the parallels between the iFund and the Anthology Fund, noting that the current wave of AI innovation is progressing much faster than previous technological advancements like the iPhone. As AI becomes an increasingly attractive investment, venture capitalists are enhancing their offers to attract promising AI startups. According to Crunchbase, funding for AI startups more than doubled in the second quarter of the year, surpassing $24 billion.
Anthropic’s support for startups extends beyond financial investment; it includes coaching, quarterly meetups, and a direct line of communication with the company, referred to by Murphy as a “bat phone.” However, Anthropic will not take an equity stake in these startups. Co-founder Daniela Amodei, who established Anthropic with her brother Dario after leaving OpenAI, explained that their goal is to create a feedback loop to improve their products through close collaboration with developers. By offering credits and guidance, Anthropic aims to reduce the high costs of starting an AI company, which can be a significant barrier to entry.
The Anthology Fund not only aims to assist startups but also stands to benefit Anthropic by encouraging the next generation of AI companies to build on its infrastructure. This positions Anthropic to compete more effectively with OpenAI, which has its own $175 million venture fund dedicated to supporting AI companies. Murphy highlighted the unique alignment opportunities provided by the Anthology Fund, allowing Anthropic, Menlo Ventures, and the funded entrepreneurs to foster a collaborative community, drive innovation, and create significant advancements in AI technology.
In essence, the Anthology Fund represents a strategic move by Anthropic and Menlo Ventures to nurture early-stage AI startups, enhance Anthropic’s technology through collaborative development, and ultimately strengthen their position in the rapidly evolving AI industry.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/17/anthropic-menlo-ventures-launch-100-million-anthology-fund-for-ai.html
