Google is investing over $1 billion into AI startup Anthropic, separate from a recent $2 billion fundraising round led by Lightspeed Venture Partners that valued the firm at $60 billion, Financial Times news report said.
This adds to Google’s existing $2 billion commitment to Anthropic, a major competitor of OpenAI in the AI foundation model space.
The investment reflects Google’s strategy to strengthen its position in the AI race, which has intensified following OpenAI’s launch of ChatGPT in 2022.
Anthropic, generating an annualized revenue of approximately $875 million, offers AI models through direct access and third-party platforms like Amazon Web Services. The development of large language models demands significant computing resources and talent, making such investments crucial.
Amazon has also increased its stake in Anthropic to $8 billion, underscoring the competitive landscape in AI.
