Google to boost investment by $2B in Anthropic, an AI firm: Report.

Google has increased its investment in artificial intelligence (AI) startup Anthropic by an additional $2 billion, according to a report from the Wall Street Journal (WSJ). The initial investment of $500 million has already been made, and the remaining $1.5 billion will be paid off over time. This latest mega-deal follows Google’s earlier investment of $550 million in Anthropic, as well as a multi-year deal worth over $3 billion between Google Cloud and Anthropic.

Anthropic, considered a rival to OpenAI, the creator of ChatGPT, is using these investments to train its AI systems, including its AI assistant Claude. The aim is to achieve a major breakthrough in the AI industry. Google’s investment in Anthropic reflects the tech giant’s ongoing push into AI, following Amazon’s $4 billion investment into the startup last month.

In contrast, OpenAI has received more than $13 billion in funding from Microsoft since 2019. OpenAI continues to develop more advanced versions of its own AI chatbot, ChatGPT, which gained over 100 million users within the first two months of its launch. This success has attracted interest from venture capital firms worldwide, looking to invest in the AI space.

Anthropic was founded by siblings Dario and Daniela Amodei, who previously worked at OpenAI but left in 2021 due to disputes with OpenAI’s CEO regarding safety implications associated with building AI systems.

Prior to Google and Amazon’s investments, Anthropic received significant funding from former FTX CEO Sam Bankman-Fried, who invested approximately $530 million in April 2022. Anthropic’s surge in valuation has been seen as a positive sign for FTX creditors, as they hope to be fully compensated from FTX’s bankruptcy case.

This increased investment in Anthropic by Google further highlights the growing importance of AI in the tech industry. With major players like Google, Amazon, and Microsoft heavily investing in AI startups, the race to achieve breakthroughs in AI capabilities is intensifying. These investments not only fuel research and development in the AI field but also have implications for various industries that can benefit from AI advancements, such as healthcare, finance, and retail.

As AI continues to evolve and become more prevalent in our everyday lives, it is crucial for tech giants to invest in AI startups like Anthropic to foster innovation and drive progress in this rapidly advancing field. The competition between companies like Google, Amazon, and Microsoft will likely lead to further advancements in AI technology, benefiting society as a whole.

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