Earlier in 2023, Google invested $550 million in Anthropic, so this new investment is a significant expansion on that.
An extra $2 billion investment by Google into the artificial intelligence (AI) startup Anthropic is being cited as evidence of the company’s renewed dedication to the field of AI.
After initially investing $500 million in Anthropic, a rival to OpenAI, Google has promised to pay the rest $1.5 billion over the course of many years.
This massive investment adds to the $550 million that Google put on Anthropic in the first half of 2023. The alliance between Google Cloud and Anthropic has been further solidified by a multiyear arrangement worth more than $3 billion.
After Amazon’s $4 billion investment in Anthropic in September, this announcement seems timely. With the goal of making revolutionary strides in the AI sector, Anthropic is investing these massive sums into the training of its AI systems, most notably its AI helper Claude.
In contrast, OpenAI, which Microsoft has funded to the tune of almost $13 billion since 2019, With over 100 million users in only two months after its introduction in November 2022, ChatGPT quickly caught the eye of venture capital companies across the globe.
Notably, Dario and Daniela Amodei, co-founders of Anthropic, were formerly affiliated with OpenAI before leaving in 2021 owing to disagreements with OpenAI’s CEO Sam Altman on the safety implications of developing AI systems.
Sam Bankman-Fried, a former CEO of FTX, invested around $530 million in Anthropic in April 2022, long before the digital titans Google and Amazon invested.
About seven months before to FTX’s financial downfall, this investment was made. Creditors of FTX, who are hoping to be completely refunded via bankruptcy procedures coming from FTX’s financial issues, see Anthropic’s significant value gain as a promising indicator.
Anthropic’s recent funding round is indicative not just of the growing prominence of AI in the tech industry, but also of the intense rivalry between giants like Google and Amazon in the quest to develop cutting-edge AI systems.
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