Menlo Ventures partners with Anthropic to launch $100 million AI fund, intensifying competition with OpenAI.

• Anthropic and Menlo Ventures are collaborating to invest in early-stage startups and integrate the artificial intelligence company's technology into their businesses.
• The Anthology Fund, worth $100 million, is based on the iFund, a 2008 collaboration between Apple and Kleiner Perkins.
• According to Matt Murphy, a partner at Menlo who previously worked at Kleiner Perkins, the project was highly successful and allowed Apple to gain insight into the needs of early developers.

Anthropic and one of its biggest investors are taking a page from playbook.

On Wednesday, an AI startup and Menlo Ventures will launch a $100 million fund to support early-stage startups and encourage their adoption of the AI company's technology. Menlo will provide the capital for the investments, while Anthropic will offer founders $25,000 in credits to be used towards utilizing its large language models.

The launch of the Anthology Fund signifies a partnership between Apple and venture firm Kleiner Perkins. The joint venture, known as the iFund, was established in 2008 to support developers on Apple's mobile platforms. Initially funded with $100 million, it doubled to $200 million two years later.

This launch was inspired by Matt Murphy, a partner at Menlo Ventures and a former partner at Kleiner Perkins, who said the iFund was the source of his inspiration.

"According to Murphy, the event was highly successful as it allowed Apple to gain insight into the needs of early developers and for developers to understand what Apple was considering selling. There are many similarities between the two."

According to Murphy, the major distinction lies in the fact that AI is advancing at a faster rate than iPhone development. He stated that the current wave of AI is occurring 10 to 100 times more quickly than the previous wave of innovation.

AI startups are attracting more funding from venture capitalists, with funding more than doubling in the second quarter from the first, reaching $24 billion, according to Crunchbase data.

Anthropic is providing coaching, quarterly meetups, and other resources, including a direct line to the company, which Murphy referred to as a "bat phone."

Anthropic, founded by Daniela Amodei and her brother Dario, will not write any equity checks or obtain a financial stake in startups. Instead, the company aims to establish a feedback loop with developers to improve its own products.

"Daniela Amodei of AI stated that it can be costly to begin in AI, which may discourage entrepreneurs from launching their companies. To address this issue, their goal is to provide credits and guidance on how to navigate the ecosystem."

Anthropic can benefit from having the next generation of high-flying AI companies building on its underlying infrastructure, as it directly competes with OpenAI, the creator of ChatGPT.

The OpenAI Startup Fund, with a $175 million investment, aims to support AI companies in making a significant, positive impact on the world.

Murphy stated that it is challenging to achieve alignment with another strategic partner when differentiating the Anthology Fund.

"Anthropic, along with a set of entrepreneurs we plan to fund in the next couple of years, has a unique opportunity to build a great community, learn together, and create some of the most disruptive and innovative things, ultimately resulting in something truly remarkable," Murphy stated.

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