(Reuters) -AI startup Anthropic is in advanced talks to raise $2 billion in a deal valuing the OpenAI rival at $60 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The AI sector has seen a surge in investment activities, with companies like OpenAI and Elon Musk's xAI raising substantial funds.

AI start-up Anthropic is nearing a deal to raise $2bn, a move that would place the three-year old company at a $60bn valuation.

Anthropic is in advanced talks to raise $2 billion in a deal that would value it at $60 billion, more than triple its valuation from a year ago. The funding round is being led by the venture firm Lightspeed Venture Partners,

Anthropic may be joining rival OpenAI with its own eye-popping valuation, but the hefty valuations for the two biggest AI startups obscure the fact that, for now, these companies are burning through billions in cash.

OpenAI rival Anthropic is in advanced talks to raise $2 billion in a funding round that would value the startup at $60 billion, according to two people familiar with the matter.