One of Anthropic's earliest backers shares where he's investing now, and offers advice to founders

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Published: 2026-10-09T00:30:39.167Z • Permanent link

Matt Murphy, a partner at Menlo Ventures, has been a long-time backer of Anthropic, a cutting-edge artificial intelligence company. In an exclusive conversation with Business Insider, Murphy shared insights into the company's journey and where he's investing now. The story begins in 2015 when Ben Schreck, a physicist and entrepreneur, founded Anthropic in the San Francisco Bay Area. Schreck's vision was to create a more transparent and explainable AI, which would revolutionize the way AI systems are designed and deployed.

Murphy first met Schreck through Menlo Ventures, where he was impressed by the entrepreneur's passion and vision. He invested in Anthropic in 2017, and the company quickly gained traction. In 2020, Anthropic secured a $240 million funding round led by Khosla Ventures, which further validated the company's potential. Today, Anthropic is one of the leading AI companies, with a focus on developing more transparent and accountable AI systems.

Murphy's investment in Anthropic is not just about supporting a promising startup; it's also about investing in a vision that has the potential to transform the AI industry. As he explained to Business Insider, "I believe that Anthropic's approach to explainable AI is critical to unlocking the full potential of AI. If we can make AI more transparent and accountable, we can build trust in AI systems and ensure that they are used for the betterment of society.

The implications of Murphy's investment in Anthropic are far-reaching. For companies like Google, Amazon, and Facebook, which are already investing heavily in AI research, the development of more transparent and accountable AI systems is crucial. If AI systems are not transparent, it can be difficult to understand how they arrive at their decisions, which can lead to biases and errors. This can have serious consequences, particularly in areas like healthcare, finance, and transportation, where AI systems are being used to make critical decisions.

As research communities and policymakers grapple with the ethics of AI, Anthropic's approach to explainable AI is gaining traction. The company's work has already been recognized by leading researchers and organizations, including the National Science Foundation and the European Union's Horizon 2020 program. By investing in Anthropic, Murphy is not just supporting a promising startup; he's also contributing to a broader conversation about the future of AI.

Anthropic's story is part of a larger pattern in the AI industry. In recent years, there has been a growing recognition of the need for more transparent and accountable AI systems. This has led to a surge in investment in AI research and development, with companies like Google, Microsoft, and Facebook investing heavily in explainable AI initiatives. However, this trend also raises concerns about the commercialization of AI and the potential for bias and errors in AI systems.