Anthropic is nearing completion of a $20 billion capital raise at a $350 billion valuation, with investor interest prompting the company to double its initial funding target. This development comes just five months after the firm secured $13 billion in equity, but fierce competition among leading AI labs and the substantial ongoing compute costs have accelerated its fundraising timeline.

The round is anticipated to include participation from Altimeter Capital Management, Sequoia Capital, Lightspeed Venture Partners, Menlo Ventures, Coatue Management, Iconiq Capital, and Singapore’s sovereign wealth fund. However, the majority of the capital is expected to come from Anthropic’s strategic partners, Nvidia and Microsoft.

The company is building on recent momentum, particularly the successful deployment of its coding agents, which software engineers have praised for significantly boosting coding productivity. Additionally, last week’s release of new models tailored for legal and business research unsettled the stock prices of publicly-traded data firms, as investors grew concerned about AI’s potential to disrupt those industries.

This fundraising activity occurs amid a highly competitive landscape. Anthropic’s rival, OpenAI, is reportedly organizing a new $100 billion funding round. Both companies are believed to be preparing for initial public offerings ahead of what could be a landmark summer in the markets. Meanwhile, xAI, recently acquired by SpaceX, is also planning to access public equity as part of the rocket manufacturer’s own IPO.