Google has reaffirmed its commitment to advancing artificial intelligence (AI) by injecting an additional $2 billion into Anthropic, an AI startup, according to a recent report.
Google’s initial investment of $500 million in Anthropic, a competitor to OpenAI, has now been followed by a commitment to pay the remaining $1.5 billion over time.
This substantial investment builds upon Google’s earlier $550 million injection into Anthropic earlier in 2023.
Additionally, Google Cloud has entered into a multiyear agreement with Anthropic, valued at over $3 billion, further solidifying their partnership.
This news comes on the heels of Amazon’s substantial $4 billion investment in Anthropic in September.
Anthropic is channeling these substantial funds into the training of its AI systems, notably AI assistant Claude, with the aim of achieving groundbreaking developments in the AI industry.
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In contrast, OpenAI, which has received more than $13 billion in funding from Microsoft since 2019,
ChatGPT gained rapid popularity, amassing over 100 million users within its first two months after launching in November 2022, drawing the attention of venture capital firms worldwide.
Notably, Anthropic’s co-founders, siblings Dario and Daniela Amodei, were formerly associated with OpenAI but departed in 2021 due to disputes with OpenAI’s CEO Sam Altman regarding the safety implications of AI system development.
Prior to the investments from tech giants Google and Amazon, Anthropic relied heavily on funding from Sam Bankman-Fried, the former CEO of FTX, who contributed approximately $530 million to Anthropic in April 2022.
This investment came roughly seven months before FTX’s financial downturn.
Anthropic’s substantial increase in valuation is seen as a positive sign for creditors of FTX, as they hope to be fully compensated through the bankruptcy proceedings stemming from FTX’s financial difficulties.
The infusion of funds into Anthropic not only underscores the importance of AI in today’s tech landscape but also highlights the fierce competition and investments made by major players like Google and Amazon in the race to advance AI technology.
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