<ul><li>Venture firms are breaking the long-standing taboo of not backing competitors by investing in multiple competing large language model (LLM) startups like OpenAI and xAI.</li><li>Some VCs argue that investing in multiple LLMs is strategic, while others see it as unethical.</li><li>Investing in competing companies is perceived by some VCs as an affront to their commitment to a particular company and potentially sharing confidential information with competitors.</li><li>However, others argue that backing multiple LLMs is justifiable given the early stage of the industry and the need for diverse models.</li></ul>

VCs are 'hedging their bets,' backing competing LLMs like Anthropic and OpenAI, breaking a long-standing venture taboo

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