Abu Zar Mishwani
Alphabet’s Google is set to invest $2 billion in the artificial intelligence company Anthropic, as confirmed by a spokesperson from Anthropic on Friday.
The company initially invested $500 million in the OpenAI competitor and committed to adding an additional $1.5 billion gradually, according to the spokesperson.
Google is already backing Anthropic, and this new investment signals an increased push to compete with Microsoft, which supports the creators of OpenAI’s ChatGPT. This reflects the ongoing race among major tech companies to integrate AI into their applications.
Last month, Amazon.com announced its intention to invest up to $4 billion in Anthropic, aiming to stay competitive with other cloud providers in the field of AI.
In Amazon’s recent quarterly report to the U.S. Securities and Exchange Commission, the company disclosed its investment in a $1.25 billion note from Anthropic, which has the potential to be converted into equity. Additionally, Amazon’s authorization to invest up to $2.75 billion in a second note is set to expire in the first quarter of 2024.
Google and Amazon have not responded to a request for comment from Reuters.
The Wall Street Journal previously reported the details of Google’s recent agreement with Anthropic.
The increasing investments highlight the ongoing efforts of cloud companies to strengthen their connections with AI startups, which are having a significant impact on the transformation of the cloud industry.
Anthropic, co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, is actively working to secure the necessary resources and support from well-funded backers to position itself as a leading contender in the technology sector, especially in competition with OpenAI.