Google’s $2 Billion AI Investment Rivals Amazon in Anthropic Deal

In a major boost to Anthropic, an Artificial Intelligence (AI) startup, Tech Giant Google announced an investment of $2 billion.

According to the Wall Street Journal, people familiar with the matter confirmed the update saying, the new round is investment is separate from the previously announced $500 million investment, earlier this year.

It is to be noted, that Google is already an investor in Anthropic, a startup AI company, aiming to compete with Tech Giant’s ChatGPT in the AI sector. The fresh investment would underscore a ramp-up in its efforts to better compete with Microsoft, a major backer of ChatGPT creator OpenAI.

Is Google Competing Amazon In AI?

What is interesting to know is that Alphabet’s Google announced the new round of investment after Amazon announced a huge funding of $4 billion for Anthropic, a rival of OpenAI.

Amazon had detailed that it had invested $1.25 billion in the AI startup, which can be converted into equity, and its ability to invest $2.75 billion in a second note expires in the first quarter of 2024.

The investment of big companies into startups is said to be an effort to infuse AI technology into their products, as there has been a massive rise in AI in the era. ChatGPT, OpenAI, and other giants are in the market, marking their footprints to grow stronger with the vision of having a stronghold in the technology and AI sector.

Notably, these AI-oriented industries, especially startups are shaping the industry, and Anthropic is considered one of the strong rivals of OpenAI. Now, with the huge investment from Amazon, as well as Google, Anthropic is likely to start working on its vision of a 4-year plan.

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Anthropic’s 4-year plan to take on OpenAI:

AI research startup Anthropic aims to raise as much as $5 billion in funding over the next two years to take on rival OpenAI and enter over a dozen major industries.

As per an official statement of Anthropic, it revealed that they plan to build a “frontier model” — tentatively called “Claude-Next”. This plan aims to be ten times more capable than today’s most powerful AI. However, this plan and associated work required huge investment and would take approximately 2 years, to be a reality.

Meanwhile, being on the radar of investors, especially giant companies is good news for Anthropic, especially after the recent collapse of FTX.  The recent Google and Amazon fundings can not only Anthropic’s capital but overall worth and FTX’s stake.

Notably, Anthropic is named SBF trial amid the inclusion of creditors, former FTX employees, and government age­ncies. These le­gal battles could potentially impact the priority and distribution of Anthropic’s stake­.

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