Eric Schmidt's early Anthropic bet poised for substantial returns

Eric Schmidt, who previously served as chief executive of Google, is positioned to realise considerable returns on an early-stage investment in Anthropic, the artificial intelligence startup founded by former members of OpenAI. Schmidt's stake, believed to represent approximately 1 per cent of the company, was acquired through a substantial capital commitment during Anthropic's Series A fundraising round, when the startup was in its formative stages.

The investment exemplifies the rush among prominent technology figures and venture capital firms to back emerging AI companies. Anthropic has since become one of the most closely watched players in the generative AI sector, developing Claude, a large language model positioned as a competitor to OpenAI's ChatGPT.

Schmidt's early backing of the startup reflects his sustained interest in artificial intelligence developments following his tenure at Google, where he witnessed the company's emergence as a dominant force in search and digital advertising. The timing of his Series A investment underscores how early-stage backers in successful AI ventures have secured positions ahead of significant valuation increases.

While Anthropic has not yet announced a public listing, recent funding rounds have valued the company at multiples of its earlier valuations, suggesting Schmidt's initial investment could generate returns substantially exceeding his original commitment. The AI sector's rapid growth and competitive dynamics have driven investor appetite for established players in the space.