Anthropic backs $10B+ European AI consultancy with Hg

Anthropic has teamed with London private-equity firm Hg to launch an AI consultancy aimed at embedding engineers inside European software companies and white-collar businesses. The venture marks Anthropic’s first attempt to monetize its expertise independently, with the partners reportedly targeting a valuation above $10 billion within five years.

The new company will draw capital from Anthropic and Hg-managed funds, including the London-listed HgCapital Trust. It is slated to launch by year-end, with plans to establish a presence in London and Berlin and focus on business-to-business software providers and other knowledge-work sectors. Sources familiar with the matter say the consultancy will help clients design AI-powered products and support existing AI initiatives, while also serving Hg’s portfolio companies.

Meanwhile, Chinese AI startup DeepSeek has secured $15 billion in its latest funding round, led by battery maker CATL and Tencent, per Bloomberg. The final amount followed at least two increases to its initial target. The capital infusion aims to help DeepSeek narrow the resource gap with US rivals like OpenAI and Anthropic, though its funding remains significantly smaller. Reports suggest the company has ramped up investments in infrastructure and open-source models as it eyes future growth.

The two developments highlight a broader tension in the AI industry: whether companies will compete on models or on their ability to deploy them. Anthropic’s consultancy suggests a strategy to capture value beyond model licensing, potentially insulating it from commoditization. The choice of European hubs may reflect an effort to target industries where trust in AI safety and compliance is critical.

DeepSeek’s funding, by contrast, underscores the scale-driven economics of AI development. The company has previously released open-source tools, a move that could help build developer adoption but also risks accelerating commoditization. The $15 billion round provides runway, though it remains far below the war chests of its US counterparts.

For European businesses, the Anthropic-Hg venture could offer a new avenue for accessing AI talent. The consultancy’s focus aligns with Hg’s existing investments in enterprise software, which may give it an early customer base. The ambitious valuation target suggests confidence in demand for AI integration services outpacing the supply of skilled practitioners.

The success or failure of Anthropic’s consultancy could influence whether other AI labs follow suit. If it gains traction, it might encourage similar moves from competitors. If not, it could reinforce the dominance of model providers over implementation specialists.

DeepSeek’s trajectory will also be worth watching. While the funding round buys time, its long-term position depends on execution and market conditions.

Sources: exchangewire.com