With Anthropic awaiting its IPO, the AI boom is pushing VC giant fund models to their limits.

Newcomer analyzes how Anthropic's pre-IPO financing forces firms like Menlo Ventures, Lightspeed, and ICONIQ to expand fund sizes, bring in LP co-investments, and set up SPVs just to write large checks, with its S-1 filing potentially imminent. The article notes that OpenAI is reportedly negotiating a $300 billion raise at a $1.25 trillion valuation, while also warning that limited cash returns for LPs and narrowing exit windows may constrain further expansion of the giant fund model.