Google has invested about $400 million in artificial intelligence startup Anthropic, making it the latest tech giant to invest its money and computing power behind a new generation of companies trying to stake a claim in the burgeoning field of “generative AI.”
Google and Artificial Intelligence
Terms of the deal, under which Google will acquire a stake of about 10%, call for Anthropic to use the money to acquire computing resources from the search company’s cloud computing division, according to people familiar with the deal.
We're excited to use Google Cloud to train our AI systems, including Claude! https://t.co/IaqQ5lpJrP https://t.co/vOn5Cj4sPt
— Anthropic (@AnthropicAI) February 3, 2023
Google’s move highlights the influence that a small number of large tech companies have assumed over other companies working in AI, which need access to cloud computing platforms to handle the immense AI models developed by groups like Anthropic.
The search firm’s investment also echoes Microsoft’s $1 billion cash-for-computing investment in OpenAI three years ago.
The Microsoft deal set OpenAI on the path to building a series of innovative artificial intelligence systems, culminating in the launch late last year of ChatGPT, a chatbot that can converse with users via text messages.
The software giant followed up last month with what it described as a second “multi-year, multi-million dollar” investment in the company.
Both OpenAI and Anthropic are looking to make developments in generative AI, sophisticated computer programs that can write scripts and create art in seconds.
While Microsoft has tried to integrate OpenAI technology into several of its services, Google with Anthropic is merely acting as a technology provider to the company, which has become a war over AI, according to people with ties.
Anthropic was created in 2021 after researchers led by Dario Amodei left OpenAI due to a disagreement with the company.
They were concerned that Microsoft’s early investment in OpenAI would put it on a more commercial path and detract from its original focus on advanced AI security.
Anthropic has developed an intelligent chatbot called Claude, which rivals OpenAI’s ChatGPT, although it has not yet gone public.
The startup had already raised more than $700 million prior to Google’s investment, which was made in late 2022 but not previously reported.
The company’s largest investor is Alameda Research, the crypto hedge fund of FTX founder Sam Bankman-Fried, which invested $500 million before filing for bankruptcy last year.
FTX’s bankruptcy status has pointed to Anthropic as an asset that can help creditors with recoveries.
Google’s investment
Google’s investment was made by its cloud division, led by former Oracle exec Thomas Kurian. Bringing Anthropic’s data-intensive computing work to Google’s data centers is part of an effort to catch up with the lead Microsoft has taken in the fast-growing AI market thanks to its work with OpenAI.
Google’s cloud division is also working with other startups such as Cohere and C3 to try to secure a bigger presence in AI.
Google and Anthropic declined to comment on the investment, or what the tech giant would have over the startup’s business.
Founders of technology companies often use dual-class share arrangements like this to ensure they maintain control and can dilute the influence of outside investors.
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