Anthropic has become the world's most valuable artificial intelligence startup after raising $65 billion in new funding that values the company at $900 billion, surpassing OpenAI's last reported valuation of $730 billion.

The funding round represents a significant milestone in the competition between AI companies as they race to develop and deploy advanced artificial intelligence systems. The two companies have emerged as leading competitors in the generative AI space, with both developing large language models that compete directly with each other.

Meanwhile, other developments across the AI and technology sector continue to reflect the industry's rapid evolution. Microsoft is preparing to release a new coding model next week, according to industry reports, while AI chip company Groq is targeting a $650 million fundraising round following a licensing deal with Nvidia.

The AI boom is also driving significant business changes across industries. Snowflake's stock surged 37% in what could be its best trading day ever, fueled by AI-related enthusiasm that contributed to a broader software sector rally. However, the technology is also contributing to workforce reductions, with website builder Wix announcing a 20% workforce cut that the company partially attributed to AI adoption.

Investment activity remains robust in the AI sector, with healthcare technology company H1 securing $40 million in funding from CVS and other investors. The company's CEO argued that while AI can replicate workflow software, it cannot copy H1's proprietary doctor data, highlighting how companies are positioning themselves in an AI-driven market.