Lightspeed Venture Partners is reportedly organizing a secondary deal valued at approximately $600 million to bolster its investments in the artificial intelligence sector. This initiative, internally named Project Mercury, will establish a continuation fund to extend ownership in key assets like OpenAI and facilitate a new investment in Anthropic. The complex transaction highlights a strategic maneuver to navigate the current venture capital landscape while doubling down on high-growth AI companies.
A Strategic Restructuring for AI Leadership
The Project Mercury fund is designed to achieve two primary goals: retaining stakes in high-performing portfolio companies and injecting fresh capital into AI leader Anthropic. The vehicle will consolidate assets from two existing Lightspeed funds, including holdings in OpenAI, Verkada, Rippling, Reflection AI, and Glean. This structure provides liquidity options for existing investors while allowing the firm to maintain its position in these promising technology enterprises.
Focus on AI Giants Anthropic and OpenAI
At the core of this deal are AI powerhouses Anthropic and OpenAI, whose shares have become highly sought after in private markets. Anthropic recently closed a funding round at a $965 billion valuation, with its annual revenue run-rate surpassing $47 billion. Meanwhile, OpenAI completed a funding round that valued it at $852 billion, reflecting the intense investor appetite for foundational AI model equity.
Lightspeed's relationship with Anthropic is well-established, as the firm was an early investor and later co-led a significant $3.5 billion Series E round. This history underscores the venture capital firm's deep conviction in the AI company's long-term trajectory and technological prowess. Project Mercury represents the next phase of this commitment, ensuring Lightspeed remains a key partner in Anthropic's continued growth.
Adapting to a Challenging Exit Market
This strategic move reflects a broader industry trend shaped by a constrained environment for initial public offerings and acquisitions. U.S. venture funds have faced a significant liquidity squeeze, with cumulative cash distributions remaining negative by an estimated $197 billion since 2022. Continuation vehicles offer a practical solution, enabling firms to generate returns for limited partners without prematurely selling their top-performing assets.
The use of such secondary structures has surged, with global transaction volume for general-partner-led continuation funds growing 53% year-over-year to $115 billion in 2025. These deals now constitute nearly half of the entire secondary market, demonstrating their importance in the current investment climate. Lightspeed's initiative is a prime example of how firms are adapting to provide liquidity while holding onto their highest-conviction investments.
Lightspeed's Deepening AI Conviction
Project Mercury is part of a larger, firm-wide strategy centered on artificial intelligence, where Lightspeed has already invested over $5.5 billion. The firm recently bolstered its resources by closing over $9 billion in new capital and relocating its headquarters from Menlo Park to San Francisco. This move to the SoMa district places the firm at the heart of the city's vibrant AI ecosystem.
Ultimately, Lightspeed's $600 million Project Mercury fund is a significant and strategic maneuver in today's venture capital market. It showcases a sophisticated approach to portfolio management, allowing the firm to deepen its commitment to AI leaders like Anthropic and OpenAI amid a slow exit environment. While the final terms may evolve, the initiative signals strong confidence in the future of artificial intelligence and reflects a key adaptive trend across the industry.
Source: Bloomberg