In a strategic play to advance its AI capabilities, Google is putting up to $2 billion into Anthropic, an emerging contender to OpenAI. The initial funding is $500 million, with an additional $1.5 billion planned. This marks Google’s redoubled efforts to compete with Microsoft, a major supporter of OpenAI.
Joining the investment frenzy, Amazon recently declared it would invest a maximum of $4 billion in Anthropic. Amazon’s commitment includes a $1.25 billion convertible note, and the company retains the option to invest an additional $2.75 billion through the first quarter of 2024, according to regulatory filings.
This spike in investments demonstrates a rush by cloud-service giants to affiliate with transformative AI startups. Anthropic, established by siblings and former OpenAI leaders Dario and Daniela Amodei, appears well-equipped for the challenge. The startup is focused on gathering the essential financial backing and resources to take on industry heavyweights like OpenAI.
Google has refrained from commenting on this deal, and Amazon has been similarly tight-lipped. Despite the silence from these tech behemoths, it’s evident that the AI sector is heating up with increased competition and investments. With significant financial commitments from industry leaders like Google and Amazon, Anthropic is positioning itself as a formidable challenger in the rapidly evolving AI landscape.
