Google is set to invest up to $2 billion in Anthropic, an artificial intelligence (AI) company that rivals OpenAI. According to a spokesperson for Anthropic, Google has already invested $500 million upfront and will commit an additional $1.5 billion over time. This investment signifies Google’s intention to compete with Microsoft, a partner of OpenAI, as big tech companies race to integrate AI into their applications.
Anthropic is known for developing Claude 2, a chatbot that competes with OpenAI’s ChatGPT. Companies such as Slack, Notion, and Quora are reported to be utilizing Claude 2. Previously, Google had invested $300 million in Anthropic, acquiring a stake of about 10% in the startup. This investment also helped Anthropic financially while purchasing computing resources from Google’s cloud computing division.
In addition to Google’s investment, Amazon has also announced that it will invest up to $4 billion in Anthropic to compete with other AI cloud rivals. Amazon’s investment includes a $1.25 billion note from Anthropic that can convert to equity. The company has the option to invest up to $2.75 billion in a second note, which reportedly expires in the first quarter of 2024. This investment from Amazon will help Anthropic establish a stronger presence in AI development and further intensify the AI race between Microsoft, Amazon, and Google.
Amazon CEO Andy Jassy believes that AI represents a “tens of billions” opportunity for its cloud business, Amazon Web Services. Meanwhile, Google has already invested a staggering $30.7 billion in AI as of March this year. The tech giant has been leveraging AI to enhance its search engine and products like Google Assistant. Google’s Search Generative Experience (SGE), which utilizes generative AI to answer user queries, is also being expanded.
Likewise, Amazon has invested $10 billion in AI, primarily to improve its delivery services and voice assistant, Alexa. Microsoft’s investment in OpenAI amounts to $13 billion, with the company using AI to enhance voice recognition and natural language processing. Microsoft’s chairman and CEO, Satya Nadella, has expressed the company’s commitment to infusing AI across all layers of the tech stack to drive productivity gains for customers.
Among the tech companies investing substantially in AI, Google is leading the pack. This competition for AI dominance is a driving force behind the lucrative investments in these AI startups.
It is worth mentioning that besides Google, Amazon, and Microsoft, other companies, globally, are also investing heavily in AI to stay ahead in the AI race.
In conclusion, the investment of up to $2 billion Google in Anthropic signifies its determination to compete with OpenAI and Microsoft in the AI space. This investment is part of the ongoing race among big tech companies to integrate AI into their products and services, with Google currently leading the way.