Google plans to invest approximately $2 billion in Anthropic

Following Amazon’s monumental $4 billion investment in Anthropic, an artificial intelligence startup founded by former OpenAI employees, Google has outlined its aspirations to augment its stake in the same venture.

Sources intimate that Google is poised to initially infuse $500 million into Anthropic, with plans to subsequently bolster this with an additional tranche of $1.5 billion. It’s worth noting that prior to this endeavor, Alphabet, Google’s parent entity, had already earmarked an investment of approximately $550 million in Anthropic.

Intriguingly, even before Google formalized its investment intent with Anthropic, the latter had already brokered a nearly $3 billion extensive usage agreement with Google Cloud, leveraging Google’s cloud infrastructure to amplify its artificial intelligence computational prowess.

Viewing the investment landscape through the lens of Amazon and Google’s financial commitments, one discerns that Anthropic has amassed a staggering sum nearing $7 billion within the past year, whilst simultaneously forging service agreements with these two cloud behemoths.

Anthropic, the brainchild of ex-OpenAI luminaries Dario and Daniela Amodei, initially thrived on capital secured from the FTX cryptocurrency trading platform. However, following FTX’s unfortunate declaration of insolvency, the company pivoted to seek external investment avenues, now boasting a market valuation hovering around $4 billion.