Artificial intelligence company Anthropic is in discussions with investors to raise funding at a valuation exceeding $900 billion, according to multiple sources familiar with the matter. The maker of the Claude AI assistant has received several pre-emptive offers in the $850 billion to $900 billion range, potentially valuing the company higher than its competitor OpenAI.

The reported valuation discussions come as the AI sector continues to attract massive investment. Sources indicate Anthropic is considering a funding round of approximately $50 billion, though the company has not officially confirmed these discussions.

Meanwhile, Elon Musk testified on the second day of his trial against OpenAI, stating he "was a fool" to provide the company's early funding. Musk claimed he was misled by OpenAI CEO Sam Altman, though OpenAI's legal team countered that evidence showed otherwise. The trial stems from Musk's lawsuit alleging OpenAI departed from its original mission.

Separately, Microsoft CEO Satya Nadella discussed the company's relationship with OpenAI, stating Microsoft plans to "exploit" its deal that allows the tech giant to offer OpenAI's technology to cloud customers without payment. Nadella's comments highlighted the strategic value Microsoft sees in its OpenAI partnership.

The developments underscore the intense competition and high valuations in the artificial intelligence sector, as companies race to develop and commercialize advanced AI technologies.