Google To Invest $2 Billion in AI Startup Anthropic
Google has invested $300 million in Anthropic for a 10% stake in April 2023.
- Google has entered an agreement with Anthropic to invest up to $2 billion in the AI startup.
- The deal follows a $4 billion investment by Amazon in the company earlier in 2023.
Google has agreed to invest $2 billion in Anthropic, an artificial intelligence startup. This investment will include an upfront investment of $500 million and the remaining to be invested in the long term. Google has already invested $300 million in the company in April 2023 for a 10% stake. The new investment has come on the legs of a $4 billion investment by Amazon in exchange for a minority stake in the company.
Anthropic is known for developing the Claude2 chatbot, which rivals the capabilities of OpenAI’s ChatGPT. The company has also seen interest from other major investors, including Salesforce and Zoom. The company was valued at over $4 billion earlier this year.
The deal is being set as a convertible note, which means that the debt will be converted to equity during the next round of funding. Google has also signed another deal with Anthropic, which allows the company to use Google’s cloud computing services over the coming years.
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The deal is expected to help Google set the ground for cloud computing customers in the AI sector, owing to the high levels of computational requirements for artificial intelligence processes that are expected to arise in the coming months and years.
The deal will also put Amazon and Google at odds with Microsoft, which has invested over $10 billion in OpenAI. It will be a key part of the developments in a rapidly burgeoning generative AI market.
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