Google Fuels AI Competition with Fresh $1 Billion Anthropic Funding

Image Credit: Reuters

Google is set to invest over $1 billion into AI startup Anthropic, according to a report by the Financial Times on Wednesday.

Earlier in January, media outlets, including Reuters, reported that Anthropic was close to securing $2 billion in funding through a round led by Lightspeed Venture Partners, with the company valued at approximately $60 billion. The FT clarified that Google’s new investment is separate from the Lightspeed-led funding.

Anthropic, a key rival to OpenAI in the development of foundational AI models, declined to comment on the matter. Google also did not immediately respond to requests for comments outside of regular business hours.

This new commitment adds to Google’s existing $2 billion investment in Anthropic. Meanwhile, Amazon, which also backs the company, doubled its stake to $8 billion late last year.

Anthropic, with an annualized revenue of around $875 million, offers access to its AI models directly and via third-party cloud services, including Amazon Web Services. Building large language models requires significant computing resources and top-tier talent.

The competition in AI intensified after Microsoft-backed OpenAI launched ChatGPT in November 2022, sparking an "AI arms race." OpenAI’s growing popularity and product launches have enabled it to raise $6.6 billion in October, pushing its valuation to an estimated $157 billion.

Paraphrasing text from "Reuters" all rights reserved by the original author.