Alphabet’s tech giant, Google, has made a significant commitment to invest up to $2 billion in the artificial intelligence company Anthropic, according to a spokesperson for the startup, confirming the news on Friday.
Google’s involvement with Anthropic begins with an upfront investment of $500 million, and they have also agreed to provide an additional $1.5 billion over time.
This substantial financial backing signals Google’s determination to compete more vigorously with industry rival Microsoft, which is a major supporter of OpenAI, the creator of ChatGPT. This move reflects the ongoing race among Big Tech companies to integrate artificial intelligence into their diverse range of applications.
It’s worth noting that Amazon.com, another tech giant, recently declared its intent to invest up to $4 billion in Anthropic as part of its strategy to compete with the rising wave of cloud computing rivals in the AI space.
In Amazon’s quarterly report to the U.S. Securities and Exchange Commission, the online retailer disclosed its investment of $1.25 billion in a note from Anthropic, which has the potential to convert into equity. Additionally, Amazon retains the ability to invest up to $2.75 billion in a second note, with this option expiring in the first quarter of 2024.
Google has chosen not to comment on this development, and Amazon did not provide an immediate response to a request for comment from Reuters.
The surge in investments underscores the ongoing efforts by cloud computing companies to establish strong connections with AI startups that are reshaping the technology sector.
Anthropic, co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, continues to secure substantial resources and deep-pocketed supporters as they strive to compete with OpenAI and assert their leadership in the rapidly evolving AI landscape.
This strategic investment by Google underscores the growing significance of artificial intelligence in the tech industry and sets the stage for further developments in the AI race among tech giants. Stay tuned for more updates as this story unfolds.