Google flushes OpenAI competitor with cash

Alphabet’s Google has reached an agreement to invest up to $2 billion in the artificial intelligence company Anthropic, as confirmed by a spokesperson for the startup.

The initial investment comprises $500 million, with a commitment to provide an additional $1.5 billion over a period of time. This move highlights Google’s growing commitment to stay competitive with Microsoft, a significant supporter of OpenAI (the organisation behind ChatGPT), in the ongoing race among major tech companies to incorporate AI into their applications.

Amazon.com has also recently declared its intention to invest a substantial amount, up to $4 billion, in Anthropic to remain competitive with emerging cloud rivals in the AI sector. In its quarterly report submitted to the U.S. Securities and Exchange Commission, Amazon revealed an initial investment of $1.25 billion in a convertible note from Anthropic, with an option to invest an additional $2.75 billion in a second note by the first quarter of 2024.

Anthropic, co-founded by former executives of OpenAI, Dario and Daniela Amodei, is actively securing resources and influential backers in order to compete with OpenAI and establish itself as a leader in the tech industry.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us