Google Bets Big on AI Rival Anthropic, Investing $2 Billion

Google Bets Big on AI Rival Anthropic, Investing $2 Billion

Alphabet’s Google has made a substantial investment in the artificial intelligence company Anthropic, totaling up to $2 billion, as confirmed by a spokesperson from Anthropic. Google initially invested $500 million and committed to providing an additional $1.5 billion gradually over time.

This significant investment reflects Google’s efforts to strengthen its position in the AI landscape, particularly to compete with Microsoft, a major supporter of OpenAI, which created ChatGPT. In the ever-evolving world of technology, major tech companies are racing to integrate AI into their applications.

Notably, Amazon also announced its intention to invest up to $4 billion in Anthropic, aiming to stay competitive with other cloud service providers in the AI space.

Amazon’s recent quarterly report to the U.S. Securities and Exchange Commission revealed a $1.25 billion investment in Anthropic, which can convert to equity. Additionally, they have the potential to invest up to $2.75 billion in a second note by the first quarter of 2024.

Google chose not to comment on the matter, while Amazon did not immediately respond to a request for comment from Reuters. The Wall Street Journal was among the first to report Google’s latest agreement with Anthropic.

This flurry of investments underscores the ongoing efforts of cloud companies to establish strong partnerships with AI startups that are reshaping the tech industry. Anthropic, founded by former OpenAI executives Dario and Daniela Amodei, is actively working to secure the resources and support necessary to compete with OpenAI and emerge as leaders in the tech sector.

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