Google has committed to a significant investment in AI startup Anthropic, totaling $2 billion. The tech giant has already provided $500 million upfront and plans to deliver the remaining $1.5 billion over time. This comes after an earlier investment of $550 million made by Google in Anthropic earlier this year.
In addition to financial investment, Google Cloud has also entered a multiyear agreement with Anthropic, valued at over $3 billion.
Anthropic, a competitor of OpenAI (the creator of ChatGPT), is utilizing these funds to train its AI systems, including its AI assistant named Claude, with the hope of achieving a significant breakthrough in the AI industry.
On the other side, OpenAI has received substantial funding from Microsoft, totaling over $13 billion since 2019, and has developed advanced versions of its AI chatbot, ChatGPT. ChatGPT experienced rapid user growth, gaining over 100 million users within two months of its launch in November 2022.
Anthropic was founded by siblings Dario and Daniela Amodei, who previously worked at OpenAI before leaving in 2021 due to disagreements with OpenAI’s CEO Sam Altman concerning the safety implications of developing AI systems.
Before the substantial investments from Google and Amazon, Anthropic was primarily funded by former FTX CEO Sam Bankman-Fried, who invested approximately $530 million in April 2022, prior to the collapse of FTX.
The increase in Anthropic’s valuation has been seen as a positive development for FTX creditors, as they hope to receive full compensation from FTX’s bankruptcy proceedings.
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