Google Pours $2 Billion More into AI Startup Anthropic Amid Tech Giant's AI Push
Summary:
Google bolsters its commitment to artificial intelligence with an additional investment of $2 billion in AI startup Anthropic. This comes after an initial investment of $500 million, adding to a multi-year $3 billion deal with Google Cloud. Amazon also recently invested $4 billion in Anthropic. The funding is largely used for the development and training of AI systems, including their AI assistant Claude. Microsoft-backed OpenAI, a competitor, has received over $13 billion since 2019. Anthropic's co-founders were previously associated with OpenAI and left over safety disputes. Before the huge investments from Google and Amazon, Anthropic primarily received funding from ex-FTX CEO, Sam Bankman-Fried.
Google reaffirms its faith in artificial intelligence by pumping an additional $2 billion into AI startup Anthropic, as per a recent report. An initial investment of $500 million was put into Anthropic, a competitor to OpenAI, by Google, with a commitment to distribute the remaining $1.5 billion gradually, the Wall Street Journal reported on October 27, quoting knowledgeable sources. This colossal agreement comes in addition to Google's previous $550 million investment in Anthropic earlier. Further demonstrating their faith, Google Cloud recently entered into a multi-year partnership with Anthropic worth more than $3 billion, WSJ stated, quoting someone in the know. This follows hot on the heels of Amazon's significant $4 billion investment in Anthropic last month.
Much of this capital is being directed towards training Anthropic's AI infrastructures, such as its AI assistant Claude, with the vision of spearheading the next huge breakthrough in AI technology. In contrast, OpenAI, backed by over $13 billion from Microsoft since 2019, focuses on developing sophisticated versions of its AI chatbot, ChatGPT. The chatbot, which gathered an impressive user base of 100 million within the first two months of its release in November, has gained the attention of several international venture capital firms keen on the AI sector. Anthropic’s founders, the siblings Dario and Daniela Amodei, are OpenAI alumni who left in 2021 due to disagreements with OpenAI’s CEO Sam Altman regarding the safety concerns arising during AI system development.
Ahead of the sizeable investments from Google and Amazon, Anthropic’s main funding source was former FTX CEO Sam Bankman-Fried, who put approximately $530 million into Anthropic in April 2022 — about seven months before FTX's unfortunate demise. The rapid valuation increase of Anthropic is seen as a promising indication for FTX creditors in anticipation of comprehensive compensation from FTX's bankruptcy proceedings.
Published At
10/28/2023 5:01:14 AM
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