Google Invests $2 Billion in AI Startup Anthropic as Competition Heats Up
In a significant move to bolster its presence in the AI race, Google has reportedly invested $2 billion in AI startup company Anthropic. Founded by former members of Microsoft-backed OpenAI, Anthropic has garnered attention for its innovative technologies and potential to make a mark in the AI industry. The funding deal involves an initial investment of $500 million, with an additional $1.5 billion potentially provided later, according to reports from The Wall Street Journal.
While Google is yet to comment on the development, this investment comes after the tech giant had previously invested $300 million in April, acquiring a 10 percent stake in the company. The rapid increase in financial backing reflects the growing interest and competition surrounding AI startups.
Amazon, another major player in the AI market, had also announced its plans to invest up to $4 billion in Anthropic back in September. With a minority ownership position, Amazon’s investment signifies the intensifying competition in the generative AI market, currently dominated by OpenAI’s ChatGPT. Anthropic’s development of Claude 2, a rival chatbot to OpenAI’s ChatGPT, has turned heads in the industry.
Claude 2 has demonstrated impressive capabilities, scoring above the 90th percentile on the GRE reading and writing exams, as well as in quantitative reasoning. Its potential to provide advanced chatbot solutions sparks further interest from investors.
Notably, Anthropic was among the select few companies invited to a meeting at the White House, where responsible AI development was discussed with US Vice President Kamala Harris. Other industry giants such as Alphabet, Microsoft, and OpenAI were also present, underlining Anthropic’s reputation and significance in the AI landscape.
To enhance its capabilities, Anthropic has partnered with Amazon Web Services (AWS) and will utilize AWS Trainium and Inferentia chips for building, training, and deploying its future foundation models. Capitalizing on the price, performance, scale, and security offered by AWS, Anthropic aims to solidify its position as a frontrunner in the AI industry.
With the recent funding from Google and Amazon, Anthropic’s total investment now amounts to $1.5 billion as of July 2023. The company, founded in 2021 by former senior members of OpenAI Daniela Amodei and Dario Amodei, who served as OpenAI’s Vice President of Research, continues to make significant strides in the AI landscape. The collaboration with industry giants and substantial financial backing positions Anthropic for future success and innovation.
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