Google to invest up to $2 billion in OpenAI rival
Google's parent company, Alphabet, has confirmed plans to invest up to a staggering $2 billion in artificial intelligence start-up Anthropic, said a spokesperson for the latter, per The Wall Street Journal. The investment has kicked off with an initial $500 million and will be followed by an additional $1.5 billion over time. This strategic move showcases Google's determination to rival Microsoft, a key supporter of OpenAI, as major tech giants race to incorporate AI into their platforms.
Amazon also expressed interest in investing in Anthropic
Just last month, Amazon revealed its intention to invest a whopping $4 billion in Anthropic, aiming to outpace its cloud competitors in the AI arena. In a recent quarterly report submitted to the US Securities and Exchange Commission, the e-commerce giant outlined its investment in a $1.25 billion note from Anthropic, which can be converted into equity. Moreover, Amazon has the option to invest up to $2.75 billion in another note, which is set to expire in Q1 2024.
Anthropic established by former OpenAI executives
Anthropic was established by Dario and Daniela Amodei, siblings and former OpenAI executives. The company has been tirelessly working to secure the necessary resources and support from deep-pocketed investors in order to compete with OpenAI and position itself as a frontrunner in the tech industry. The growing number of investments from major tech players like Google and Amazon highlights the ongoing efforts by cloud companies to build strong connections with AI start-ups that are revolutionizing their sector.
